A couple of things about the dust-up regarding Michael
Best's representation of Justice Michael Gableman in ethics proceedings
stemming from the Reuben Mitchell case. We've seen a ripple of uninformed
commentary. I think the issue is worth discussing but it's not the scandal that
some people seem to think it is.
Is the arrangement
unusual? Any case brought by the Judicial Commission is a bit unusual, so
we can't look at a large universe of judicial discipline cases. But considering
cases of all types, the fee arrangement here really isn't uncommon. Because
state law provides for the prevailing party to recover fees, this was what
lawyers often call a "fee generating case," i.e., a case in which the
law provides for payment of fees to the prevailing party or there is the potential for a monetary recovery from
which fees can be paid. These arrangements allow lawyers to take a case in which
the client could not otherwise afford to hire them.
We are all familiar with the typical contingency arrangement
in personal injury cases. A lawyer provides services (clearly a thing of value)
but is not paid unless there is a recovery. The lawyer agrees to do this
because, if she does not, the client will be unable to afford to retain her.
She makes an economic decision - it is better to have the opportunity to earn a
fee than not. (This is one reason that a personal injury lawyer may not take
your case if it is too weak or too small.)
We are less familiar with contingency arrangements under
which the fee is paid not out of a recovery but because there is a statute that
awards fees to a prevailing party. But they are also fairly common. They are,
in fact, the bread and butter of lawyers who specialize in civil rights cases
and class actions. The economic calculus
is the same. The lawyer decides that a shot at fees (even if it means working a
case "on the come") is better than no shot at all.
This latter arrangement was apparently the bargain between
Justice Gableman and Michael Best. To say that contingency fee arrangements
involving defendants are rare does not get us far because there are relatively
few statutes permitting the award of attorney fees to a defendant.[i]
But there was one in this case.[ii]
In a complaint filed today with the Judicial Commission,
Mike McCabe and the Wisconsin Democracy Campaign say that the arrangement is
unusual because the award of attorney fees in a case like this is
discretionary. Because the controlling law, Wis. Stat. § 757.99, says that fees
"may be" awarded, WCD’s McCabe – who is not a lawyer – says that agreement
of a lawyer to accept only what might be awarded is unusual - even
"unheard of."
That’s not true. The award
of fees in civil rights cases is also discretionary. 42 U.S.C. §
1988(a) provides that a "court, in
its discretion, may allow the prevailing party, other than the United
States, a reasonable attorney’s fee as part of the costs ...." Yet no one
regards the agreement of a civil rights lawyer to limit herself to whatever
fees a court might award as giving a gift or thing of value or otherwise
entering into an unusual arrangement.
WCD's complaint also argues that sec. 757.99's reference to
the "reimbursement" of fees means that Justice Gableman would have
actually had to pay them or at least be obligated to pay them in order to
recover. I am not aware that the statute has ever been construed that way and
one could make the similar arguments with other fee shifting statutes. While
they tend not to use terms like “reimbursement,” one could argue that, if there
is no obligation to pay in the absence of an award, there are no fees. But
these laws are not construed in that way and I doubt that the use of the term
"reimbursement" would require a different result here.
In any event, that was not the interpretation of Justice
Gableman and Michael Best. They seem to have believed that the he could be
reimbursed for fees that were contingent upon an award. If they were wrong,
that argument would go to the merits of a fee application that was never made
and not to whether an arrangement of this type is unusual.
But, even if it is
common, was it unethical? I don't think so. SCR 60.05(4)(e) prohibits
judges from taking a gift subject to certain exceptions. Before even
considering the applicability of the exceptions, it is necessary to determine
whether the arrangement with Michael Best was a gift. SCR 60.01(7) defines a gift as "the
payment or receipt of anything of value without valuable consideration."
But there was valuable consideration here. It was Justice
Gableman's agreement to retain Michael Best in a potentially fee generating
case. Whether or not you think that is "enough" consideration to
warrant spending time on the case in the mere hope of recovery is immaterial.
Every first year law student learns that courts do not examine whether the
consideration underlying a contract is "enough" for whatever is
promised in return. We all learn that a mere "peppercorn" will do.
While we may not wish to interpret SCR 60 in the same way -
it is possible that there could be sweetheart deals that are tantamount to
gifts even though there is some form of consideration - this doesn't seem like
a particularly inviting case to do so. Lawyers generally do regard the
opportunity to be retained in fee generating cases as valuable. This is is one
of the reason that they advertise so heavily to get cases in which they will
only be paid if they win. Don't believe me? Consider David Gruber and the Law
Offices of Hupy & Abraham. TV time ain't cheap.
Even were that not the case, a lawyer's obligation to
consider the need for provision of legal
services to those who could otherwise not afford it militates against an overly
expansive interpretation of the term "gift." As noted above,
disciplinary proceedings against a sitting justice who lacked adequate
representation would not serve the public interest.[iii]
State ethics law governing "state public
officials" doesn't change the analysis. Sec. 19.45(2) prohibits state
public officials from using their position to obtain a thing of value and sec.
19.45(3) prohibits a state public official from accepting a thing of value if
it could reasonably be expected to influence him or be seen as a reward for
this past conduct.
Assuming that this provision applies, receiving a thing of value for consideration - particularly
pursuant to a fairly common arrangement between lawyers and clients - does not
fall within the proscriptions of ss. 19.45(2) or (3). A common arrangement that
lawyers and clients typically enter into does not suggest undue influence
(19.45(2)) or influence or reward (19.45(3)). To suggest otherwise would bring
all sorts of standard business relationships and transactions within the scope
of the chapter 19 and its preface makes clear that this was not the
legislature's intention.
This is not to say that there aren't issues raised by
lawyers representing judges. But those issues are better addressed through
recusal to which I turn next.
Will it - or did it -
require Justice Gableman to recuse himself? This is a completely different
question. A lawyer-client relationship between an attorney and a judge may
create an appearance or risk of bias when the lawyer appears before the judge.
This may lead to a duty on the part of the judge to recuse. In some instances,
that might apply to members of that lawyer's firm. We all talked about this
with respect to whether Justice Prosser should sit in a case in which Jim
Troupis was involved after Jim had represented the judge with respect to the
recount of last spring's Supreme Court election.[iv]
In today's Milwaukee Journal Sentinel, I am quoted as
listing the factors that would inform a decision to recuse or not and
describing the process as a judgment call. The quote is accurate.
That is the law. There are no clear or objective guidelines
for the resolution of these questions. The determination of whether to recuse
and how long to do so is committed almost entirely to the Justice who must
weight a variety of factors including his or her ability to remain impartial,
the extent to which a reasonable person might question his impartiality and the
public interest in having a matter considered by the full court. That
determination - in matters before the Wisconsin Supreme Court - is final and
subject only to correction only in unusual and extraordinary cases by the
United States Supreme Court.[v]
The article then refers to the opinion of two law
professors, Stephen Gillers and Charles Geyh, who are not Wisconsin lawyers,
who said they "believed" that Gableman should have recused himself. "Believed"
is the operative word. Their conclusions reflect the way in which those
professors thought - at least during the few seconds it took them to respond to
a reporter's inquiry - they would have reacted. They may be right but I doubt
that they knew all of the facts or spent the type of time on the question that
an actual judge does.
In the paper's coverage, Professors Gillers and Geyh seem to be heavily influenced by the
fact that Justice Gableman did not pay by the hour.. But is it really correct that judges may not
retain counsel on a contingency fee basis? What if a justice or member of her
family was in a car wreck? Do Professors Gillers and Geyh believe that a judge
may hire counsel on a contingency basis, but that the lawyer is (indefinitely?)
barred from appearing before the judge if the case is lost? What if, as was the
case here, the matter involves important constitutional questions? What if, as
I assume was the case here, a judge lacks the financial resources to hire
competent counsel?
The idea must be that Justice Gableman owes Michael Best a
"debt of gratitude" because they agreed to represent him on a
contingency basis. But this certainly doesn't comport with our common
understanding of what constitutes a gift. If I hire Bill Cannon to represent me
in a medical malpractice case and he doesn't get paid because he loses the case,
I don't think that he gave me a gift or that I owe him anything. If I retain
Walt Kelly to represent me in a civil rights case after the police beat me up
and he doesn't get paid because the case gets tossed on summary judgment, I
don't owe him a debt of gratitude for working for "free."
The bottom line is that these issues are not easy and not
properly the stuff of sound bites and partisan attacks.
Today's article report that Justice Gableman sat on some
cases involving Michael Best during a period that included (but was not
coterminous with) the period in which he was represented by Michael Best.
Should he have recused himself during that period?
Perhaps. I'd want to know precisely when these cases arose,
who the actual lawyers were and the public interest in each. The three cases that
the article refers to, for example, were argued and submitted to the court
after Michael Best's representation of Justice Gableman had ended[vi]
- although one had also been argued earlier and then set for additional
briefing and reargument.
It does appear, however, that there were other cases in
which Michael Best was involved and in which Justice Gableman participated
during the period in which he was being represented by the firm. Even if I – or
Professors Gillers or Geyh – might have decided to stand down during this
period does not mean that someone else might reach a different conclusion.
The one thing I can say is that Michael Best's
representation of Justice Gableman does not seem to have much of an impact on
his voting which was pretty much split down the middle.[vii]
Although the recusal issue goes beyond the issue of actual bias, if, as some
intemperate bloggers have charged, Michael Best thought it was "buying a
Justice" (and it didn't; it thought it was acting in the public interest),
then it got a raw deal.
There is an ethics
issue to be raised that does not involve Justice Gableman. SCR
20:1.6 prohibits a lawyer from disclosing information "relating to the
representation of a client” without authorization. From press reports and other sources, it appears that the firm disclosed Justice Gableman's fee arrangement to other members of the
court and to the press. Did Justice Gableman authorize the disclosure? If not,
was there a legal justification to do so?
I am not accusing anyone of anything and my
experience with large law firms is that they do not act rashly. There may well
be an explanation and we ought to be willing to hear it if and when the proper
time comes.
But, as a member of the bar, I am naturally curious about
this type of disclosure of a client confidence. I think it is important to
raise it because the public ought to be confident that lawyers will respect the
confidentiality of their matters.
Why was it OK to disclose a confidential fee arrangement?
[i] It
is possible for a defendant in an action brought under the federal civil rights
law to recover fees but there are additional requirements imposed by case law
(essentially that the position of plaintiff have been frivolous) that makes it
hard to do.
[ii] It
would be unfair to Michael Best, however, not to point out that it may also
have been motivated by altruism and consideration of the public interest. There
were important constitutional issues raised in the Gableman disciplinary matter
and it would have been contrary to the public interest for a sitting Supreme
Court justice to lack adequate representation. (As noted below, it is apparent
that what Michael Best has not gotten was favorable treatment for its clients.)
[iii]Unless
Michael Gableman is independently wealthy, he could not afford to hire Michael
Best & Friedrich by the hour on a justice's salary. Anyone who thinks
otherwise has never seen a bill from a large law firm. However, matters as
complex and important as those presented in his disciplinary matter required
retention of counsel of comparable talent. Lawyers like that don't come cheap.
[iv] By
way of full disclosure, I was also involved in that case although not the
recount. Jim Troupis withdrew, Justice Prosser recused himself and I argued the
case which is pending.
[v]The
reason that I say federal review would be limited is because the opinion in
the controlling case, Caperton v Massey
Coal Co., repeatedly stated that a federal constitutional duty to recuse only
arises in "unusual," "rare" and "special"
circumstances.
[vi]
The cases are Metropolitan Milwaukee Ass’n of Commerce v. City of Milwaukee
(argued October 1, 2010); Metropolitan Associates v. City of Milwaukee (argued
October 7, 2010) and State ex rel. Ozanne v. Fitzgerald (argued June 6, 2011)
[vii] Apparently,
Gableman voted for Michael Best's position five times and against it four
times. The three other "conservative" justices, Prosser, Roggensack
and Ziegler, broke 4-5, 4-4 and 4-4. That difference is not statistically
significant. The "liberal" wing - Chief Justice Abrahamson and
Justice Bradley and Crooks (to whom the liberal label should be applied
lightly) - all went 1-8. This suggests that the outcomes were a matter of
philosophy and not some external bias.