Ken Paxton likes spending money

On fancy lawyers. Perhaps because he has to, as a result of his own actions.

Still a crook any way you look

One day in late May 2024, lawyer Zina Bash spent 6 1/2 hours working on a case against Facebook parent company Meta on behalf of the state of Texas. She reviewed draft legal filings. She participated in a court-ordered mediation session and then discussed the outcome with state Attorney General Ken Paxton.

In her previous job as senior counsel on Paxton’s leadership team, that labor would have cost Texas taxpayers $641.

But Bash had moved to private practice. Paxton hired her firm to work on the Meta case, allowing her to bill $3,780 an hour, so that day of work will cost taxpayers $24,570.

In the past five years, Paxton has grown increasingly reliant on pricey private lawyers to argue cases on behalf of the state, rather than the hundreds of attorneys who work within his office, an investigation by The Texas Tribune and ProPublica found. These are often attorneys, like Bash, with whom Paxton has personal or political ties.

In addition to Bash, one such contract went to Tony Buzbee, the trial lawyer who successfully defended Paxton during his 2023 impeachment trial on corruption charges. Three other contracts went to firms whose senior attorneys have donated to Paxton’s political campaigns. Despite these connections and what experts say are potential conflicts of interest, Paxton does not appear to have recused himself from the selection process. Although he is not required to by law, this raises a concern about appearing improper, experts who study attorneys general said.

Paxton appears to have also outsourced cases more frequently than his predecessors, available records show. And he’s inked the kind of contingent-fee contracts, in which firms receive a share of a settlement if they win, far more often than the attorneys general in other large states, including California, New York and Pennsylvania. Since 2015, the New York and California attorneys general have awarded zero contingent-fee contracts; Pennsylvania’s has signed one. During that period, Paxton’s office approved 13.

One of those was with Bash’s firm, Chicago-based Keller Postman, at the time known as Keller Lenkner, which she joined as partner in February 2021 after resigning from her job at the attorney general’s office. Paxton had signed a contract with the company two months earlier to investigate Google for deceptive business practices and violations of antitrust law. A little more than a year later, Bash’s firm won a state contract to work on the Meta litigation, alleging its facial recognition software violated Texans’ privacy. This time, Bash was the co-lead counsel.

Meta, which called the lawsuit meritless, settled the case for $1.4 billion in the summer of 2024. It was a windfall for Keller Postman. The firm billed $97 million, the largest fee charged by outside counsel under Paxton’s tenure. Bash’s work alone accounted for $3.6 million of that total.

There is little to stop Paxton, or any other occupant of his office, from handing these contracts out. The attorney general can award them without seeking bids from other law firms or asking anyone’s permission.

Asked to provide competitive-bid documents for the contingent-fee contracts it has awarded, the attorney general’s office said it had none because state law “exempts the OAG from having to do all of the solicitation steps when hiring outside counsel.”

Given the high-profile nature of representing an attorney general and the potential for a big payday, many qualified firms would be eager to compete for this work, said Paul Nolette, a professor of political science at Marquette University who studies attorneys general.

“I’d be curious to know what the justification is for this not going on the open market,” Nolette said.

Paxton declined interview requests for this story. He has publicly defended the practice of hiring outside law firms, arguing that his office lacks the resources in-house to take on massive corporations like tech companies and pharmaceutical manufacturers.

“These parties have practically unlimited resources that would swamp most legal teams and delay effective enforcement,” Paxton told the Senate finance committee during a budget hearing in January.

A spokesperson for Paxton said in a statement that the outside lawyers hired by the office are some of the best in the nation. With the contingent-fee settlements to date, more than $2 billion, the state “could not have gotten a better return on its investment,” the statement said.

Chris Toth, former executive director of the National Association of Attorneys General, questioned why so much extra help is needed. Outside counsel is appropriate for small states, he said, that “only have so many lawyers with so many levels of expertise.”

The Texas attorney general’s office, one of the largest in the country, has more than 700 attorneys.

“Large states typically don’t hire outside counsel,” Toth said. “They should have the people in-house that should be able to go toe-to-toe with the best attorneys that are out there.”

[…]

In multiple legislative sessions, Paxton has testified that outsourcing was the only way his office could stand toe-to-toe with corporate titans.

If Paxton has a shortage of qualified in-house attorneys, Cornyn told the newsrooms, that’s because of the damage the whistleblower scandal did to the reputation of the attorney general’s office as a home for ambitious young lawyers.

“He’s a victim of his own malfeasance and mismanagement because people did not want to work for him anymore,” Cornyn said. “And if you run off your best lawyers because you engage in questionable ethical conduct, then you’re left with very few options. But this shouldn’t be a way to reward bad behavior.”

You don’t have to hand it to John Cornyn, but that’s a good point, one I have made before, that among many other things Ken Paxton is a bad boss. And this is one way to quantify that, which ends up costing taxpayers in the fees that get paid out to the fancy law firms. This is what a lack of accountability leads to.

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