2013-10-15

After being chided for approving a contingency fee contract for the Southeast Louisiana Flood Protection Authority—East to file suit against 97 oil and gas companies, Attorney General Buddy Caldwell has invited his critics to weigh in on a $200 million class action lawsuit that involves a similar structure for special counsel, only this time for a school board and teachers union.

At least half of the parties contacted, however, have told LaPolitics that they’ll be passing on the offer. Former lawmakers and representatives from two of the state’s most powerful business lobbies were among those asked to attend a meeting in Caldwell ‘s office in the Livingston Building on either Tuesday or Wednesday of next week.

“I invite and urge you to meet with me as soon as possible to express your opinions and views on this subject,” Caldwell wrote in a letter dated Oct. 7 and since obtained by LaPolitics.

There are also indications that former Congressman Jeff Landry, a New Iberia Republican, could emerge as the only invitee to offer an organized public reaction. Sources say Landry, who is considering running for attorney general, will soon issue a press release targeting Caldwell and his invitation. “If Buddy Caldwell is trying to push Jeff Landry into a race, he’s doing a pretty good job,” said one source.

The case in question involves the St. John the Baptist Parish School Board, which wants to retain the Kean Miller Law Firm in a matter regarding the Minimum Foundation Program, or MFP. That’s the funding schedule for Louisiana’s public elementary and secondary schools.

Alongside the Louisiana Association of Educators, the school board, which is the lead plaintiff, filed its lawsuit against the state Education Department in late June in Baton Rouge’s 19th Judicial District. The class action is related to Gov. Bobby Jindal’s Act 2, which was found unconstitutional by the Louisiana Supreme Court in May for mixing voucher schools into the MFP. The school board also wants to recover the annual growth adjustment that it holds hasn’t been applied properly to the funding program.

Whether Caldwell truly needs outside advice or is simply toying with his adversaries is unclear, but it’s certainly another curious move from a statewide elected official who has increasingly been falling under fire as of late. Asked if seeking such advice is routine for the office, Steven Hartman, one of Caldwell’s public information officers, said it was. “We occasionally consult with individuals and organizations who we believe have an interest in, or knowledge of, a particular subject matter, but we make our own decisions,” Hartman added.

Caldwell, who began the letter, “Knowing your interest in the subject of contingency fee contracts,” made the invitation to six parties, including:

— Don Briggs, president of the Louisiana Oil and Gas Association

— Former state Rep. Chuck McMains of the Jones Walker Law Firm

— Former Congressman Jeff Landry

— Melissa Landry of Louisiana Lawsuit Abuse Watch

— Charles Patin of the the Kean Miller Law Firm, who is the lead attorney for the school board in concert with Brian Blackwell of Blackwell and Associates

— Stephen Waguespack, president of the Louisiana Association of Business and Industry

Gifford Briggs, LOGA’s vice president, said they’ll be skipping the sit-down. “We’re not going,” he said. “I’m not sure what this is all about. The most interesting thing about it all is that Caldwell could possibly be the one defending the MFP. The school board wants to sue the state.”

One source connected to the group being queried suggested that few to none of the parties are interested in taking the attorney general up on his offer. “Caldwell ’s going to have a meeting with himself and the mirror,” the source said.

LABI President Stephen Waguespack said his organization’s stance on the issue is well documented and this particular instance causes concern since it involves money for Louisiana’s schools. “LABI has traditionally opposed these types of contingency fee contracts and will continue to do so,” Waguespack said.

Jeff Landry’s role in all of this is fitting, should it play out as described, especially since he has expressed interest in running for attorney general in 2015 and has become increasingly critical of Caldwell ‘s performance, particularly on issues related to Louisiana’s energy industry.

In a related matter, LOGA is currently pushing Caldwell to rule invalid the contract between the Southeast Louisiana Flood Protection Authority—East and its attorneys. The oil and gas group argues that Caldwell’s favorable resolution approving the contract for special counsel didn’t follow state law. LOGA president Don Briggs told LaPolitics, “If he chooses to not reverse his decision, we will indeed be moving forward with a petition for declaratory judgment.”

Not exactly the kind of company one would think the attorney general desires, but it’s definitely the one he’s seeking. Whether he ultimately gets it, though, is another matter. That means Caldwell may have to make the call on his own, as Hartman pointed out the attorney general is comfortable doing.

Attached to Caldwell’s correspondence was another letter from Patin explaining why the school board needs the contingency contract. Patin wrote that the school system is “presently experiencing financial difficulties. It has depleted virtually all of its reserves and will likely be confronted with the need to impose a reduction in force this school year. Accordingly, in order to file the lawsuit and assure a vigorous pursuit of the litigation it was essential that the matter be handled without cost to the St. John the Baptist Parish School Board.”

LABI President Stephen Waguespack said his organization’s stance on the issue is well documented and this particular instance causes concern since it involves money for Louisiana’s schools. “LABI has traditionally opposed these types of contingency fee contracts and will continue to do so,” Waguespack said.

Former Congressman Jeff Landry also released a statement Monday morning replying to Caldwell’s letter:

Mr. Caldwell seems destined to use his political letterhead and his office for personal political gain and gamesmanship. I, along with others named in the letter, will not sit down with Mr. Caldwell and participate in a political side show that places him, and therefore our State’s Attorney General office, in a conflict of interest.

In his letter Mr. Caldwell seems to indicate that he wants our input on whether he should allow another expensive contingency fee contract, the very subject of the recent WWL investigative report calling his decisions and integrity into question. Mr. Caldwell seems to want to discuss a case in which he would be involved, therefore creating a conflict of interest. Under the guise of seeking input, we will not be part of this conflict of interest.

If Mr. Caldwell is unsure as to what he should do, I encourage him to step aside and I will be happy to enter his office and make the right decisions on behalf of the people of Louisiana.

 

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