The conceit of trial lawyers is that they are fighting Goliaths in order to win verdicts to compensate the little guy, but their clients frequently share only the crumbs from their attorneys’ bountiful tables. In one case involving faulty pipes, the lawyers for Alabama’s plaintiffs were awarded $38 million, and those for Tennessee’s plaintiffs got $45 million; all the homeowners got was an 8 percent rebate toward the purchase of new pipes. When a cellular-service provider settled a dispute over billing practices, class members were entitled to $15 vouchers, while their attorneys got $1.25 million. A recent Colorado case over long waits for phone service resulted in a settlement providing an average of $60 for each class member—and $7.2 million for their counsel. In the 1994 settlement of the Bank of Boston case involving escrow accounts, attorneys’ fees actually imposed a net cost on plaintiffs: The lawyers received $8.5 million, and each aggrieved customer’s account was debited by $90 to pay the legal fees.
THE VICIOUS CIRCLE
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