Texas Attorney General’s Use of Private Law Firms Raises Questions

Private Law Firms in Texas

Texas Attorney General Ken Paxton is increasingly hiring private law firms to represent the state in major legal battles. This practice involves lucrative contracts often awarded to firms with personal or political ties to Paxton. This approach is more common in Texas compared to other large states like California, New York, and Pennsylvania.

High Costs and Personal Connections

One example is lawyer Zina Bash, who previously worked on Paxton’s leadership team. Bash moved to a private firm and was hired for a case against Meta, allowing her to bill $3,780 per hour, compared to $641 if she had been working within Paxton’s office. This day of work cost the taxpayers $24,570.

In addition to Bash, Tony Buzbee, who defended Paxton during his impeachment trial in 2023, and firms whose senior attorneys donated to Paxton’s campaigns were awarded contracts. Experts have raised concerns over potential conflicts of interest, although Paxton is not required by law to recuse himself from the selection process.

Frequent Outsourcing of Legal Cases

Paxton outsources legal cases more frequently and awards contingent-fee contracts—where firms receive a portion of the settlement—more often than attorneys general in other large states. Since 2015, he has approved 13 such contracts compared to zero in New York and California, and one in Pennsylvania.

Former staff changes after whistleblower reports have led to increasing reliance on private lawyers. Despite constant staffing in divisions that handle antitrust and consumer protection, Paxton continues to outsource cases to private law firms.

Financial Implications and Ethics Concerns

These contracts can result in significant rewards for private firms. For instance, in the Meta case, Keller Postman billed $97 million as fees and expenses. The firm was entitled to 11% of the settlement’s $1.4 billion total. Concerns remain over the ethics of these contingent-fee arrangements, particularly after the whistleblower scandal.

Applying Outside Legal Help

Paxton defends the practice of hiring outside firms, arguing his office lacks the resources to tackle large corporations alone. He claims outsourcing is necessary to compete with entities that have vast resources. Conversely, experts argue large states typically have enough in-house attorneys to handle such cases.

Historical Context and Past Issues

Texas has a history of outsourcing legal representation, often leading to controversy. The last Democrat attorney general, Dan Morales, faced scandal over contracts during a Big Tobacco lawsuit in 1998.

Replicating successful past victories without outsourcing remains essential, as other states have reached settlements with tech giants using in-house attorneys. Experts suggest competitive bidding could avoid favoritism and conflicts of interest.