S. HRG. 106–979 BIG GOVERNMENT LAWSUITS: ARE POLICY-DRIVEN LAWSUITS IN THE PUBLIC INTEREST? HEARING BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION ON EXAMINING THE SPATE OF CERTAIN GOVERNMENT LAWSUITS FILED AGAINST DIFFERENT INDUSTRIES NOVEMBER 2, 1999 Serial No. J–106–58 Printed for the use of the Committee on the Judiciary ( U.S. GOVERNMENT PRINTING OFFICE 71–867 DTP WASHINGTON : 2001 VerDate 11-MAY-2000 13:44 Apr 25, 2001 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 NOV2.TXT SJUD2 PsN: SJUD2 COMMITTEE ON THE JUDICIARY ORRIN G. HATCH, Utah, Chairman STROM THURMOND, South Carolina PATRICK J. LEAHY, Vermont CHARLES E. GRASSLEY, Iowa EDWARD M. KENNEDY, Massachusetts ARLEN SPECTER, Pennsylvania JOSEPH R. BIDEN, JR., Delaware JON KYL, Arizona HERBERT KOHL, Wisconsin MIKE DEWINE, Ohio DIANNE FEINSTEIN, California JOHN ASHCROFT, Missouri RUSSELL D. FEINGOLD, Wisconsin SPENCER ABRAHAM, Michigan ROBERT G. TORRICELLI, New Jersey JEFF SESSIONS, Alabama CHARLES E. SCHUMER, New York BOB SMITH, New Hampshire MANUS COONEY, Chief Counsel and Staff Director BRUCE A. COHEN, Minority Chief Counsel (II) VerDate 11-MAY-2000 13:44 Apr 25, 2001 Jkt 000000 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 NOV2.TXT SJUD2 PsN: SJUD2 C O N T E N T S STATEMENTS OF COMMITTEE MEMBERS Page Hatch, Hon. Orrin G., U.S. Senator from the State of Utah ................................ 1 Kennedy, Hon. Edward M., U.S. Senator from the State of Massachusetts ...... 3, 5 Leahy, Hon. Patrick J., U.S. Senator from the State of Vermont ....................... 4 Schumer, Hon. Charles E., U.S. Senator from the State of New York ............... 18 CHRONOLOGICAL LIST OF WITNESSES Statement of Hon. Mitch McConnell, U.S. Senator from the State of Ken- tucky ...................................................................................................................... 7 Statement of Hon. Jack Reed, U.S. Senator from the State of Rhode Island ..... 11 Statement of Hon. Richard J. Durbin, U.S. Senator from the State of Illinois .. 15 Panel consisting of Jonathan Turley, Shapiro Professor of Public Law, George Washington University, Washington, DC; Don Ryan, executive director, Alliance To End Childhood Lead Poisoning, Washington, DC; Matthew L. Myers, executive vice president and general counsel, National Center for Tobacco-Free Kids, Washington, DC; Victor E. Schwartz, Crowell and Moring LLP, Washington, DC; William M. Keys, chief executive officer, New Colt’s Holding Company, Hartford, CT; and R. Bruce Josten, executive vice president, U.S. Chamber of Commerce, Washington, DC ......................... 21 ALPHABETICAL LIST AND MATERIALS SUBMITTED Durbin, Hon. Richard J.: Testimony ...................................................................... 15 Josten, R. Bruce: Testimony .......................................................................................................... 55 Prepared statement .......................................................................................... 57 Kennedy, Hon. Edward M.: Conversation with Attorney General Janet Reno, dated April 30, 1997 ............................................................................................ 14 Keys William M.: Testimony .......................................................................................................... 51 Prepared statement .......................................................................................... 53 McConnell, Hon. Mitch: Testimony .......................................................................................................... 7 Prepared statement .......................................................................................... 9 Myers, Matthew L.: Testimony .......................................................................................................... 39 Prepared statement .......................................................................................... 41 Reed, Hon. Jack: Testimony .......................................................................................................... 11 Prepared statement .......................................................................................... 13 Ryan, Don: Testimony .......................................................................................................... 34 Prepared statement .......................................................................................... 36 Schwartz, Victor E.: Testimony .......................................................................................................... 43 Prepared statement .......................................................................................... 45 Turley, Jonathan: Testimony .......................................................................................................... 21 Prepared statement .......................................................................................... 23 (III) VerDate 11-MAY-2000 13:44 Apr 25, 2001 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 NOV2.TXT SJUD2 PsN: SJUD2 VerDate 11-MAY-2000 13:44 Apr 25, 2001 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 NOV2.TXT SJUD2 PsN: SJUD2 BIG GOVERNMENT LAWSUITS: ARE POLICY- DRIVEN LAWSUITS IN THE PUBLIC INTER- EST? TUESDAY, NOVEMBER 2, 1999 U.S. SENATE, COMMITTEE ON THE JUDICIARY, Washington, DC. The committee met, pursuant to notice, at 11:25 a.m., in room SD–226, Dirksen Senate Office Building, Hon. Orrin G. Hatch (chairman of the committee) presiding. Also present: Senators Sessions, Kennedy, and Schumer. OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM THE STATE OF UTAH The CHAIRMAN. I apologize to everybody for having to start this hearing so late. Let’s allow as many people into the hearing room as we possibly can from those standing in the hallway. Allow peo- ple to stand if they have to. Today’s hearing is entitled ‘‘Big Government Lawsuits: Are Pol- icy–Driven Lawsuits in the Public Interest?’’ The purpose of the hearing is to examine the spate of government lawsuits filed against different industries. The aim of these lawsuits is clearly to establish and enforce social policy preferences. Many of the social goals of the lawsuits appear to be worthwhile, but to me, these lawsuits raise the issue of whether the courts and the trial attorneys, or the democratically-elected legislatures of this country, should set policy for the American people. I believe that our Constitution has already provided an answer to this question. In a democratic republic, the people, through their elected rep- resentatives, must set fundamental policy. The scope of these lawsuits happens to be immense, and the American public is taking notice. A Federal suit was filed against the tobacco industry on September 22 of this year, ostensibly to re- coup Medicaid and Medicare costs for treating tobacco-related ill- nesses. In a recent Kaiser/Harvard report, the Federal Govern- ment’s civil lawsuit against the tobacco industry was rated Ameri- ca’s top health news story in September of this year, followed by 62 percent of the public. Besides the Federal tobacco suit, the Housing and Urban Devel- opment Agency, HUD, has recommended to the Department of Jus- tice that a Federal suit be filed against the firearms industry to re- coup the costs to public housing of illegal firearm use. (1) VerDate 11-MAY-2000 13:44 Apr 25, 2001 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 NOV2.TXT SJUD2 PsN: SJUD2 2 Twenty-nine cities and counties have filed suits against gun manufacturers, claiming that the manufacturers have negligently marketed and distributed firearms, resulting in increased criminal use of guns. State actions have also been filed against the lead paint manufacturers. It has been reported that other suits may be brought against the alcohol and beverage industry, the automobile industry, the fast-food industry, and the pharmaceutical industry. The latter is not at all far-fetched, given the recent announcement by President Clinton that the Government will investigate the pharmaceutical industry, although no violation of law was stated to justify such an investigation. Certainly, the social goals of reducing cigarette smoking and de- creasing firearm injuries and crimes are worthwhile. Let me say up front that I am no friend of tobacco use, nor an apologist for the tobacco industry. Indeed, I have never used tobacco products in my life and I am opposed to tobacco use. I have never inhaled or chewed tobacco, although I have wondered from time to time. Along with my cosponsor, Senator Feinstein, I worked hard last Congress to pass legislation that would have gone a long way in helping Americans kick the habit in reducing teen smoking. The legislation required the tobacco companies to pay $429 billion to settle existing lawsuits. In return for the settlement of those law- suits, the companies would have stopped targeting children, and they would also have funded anti-smoking cessation efforts. While this measure has yet to pass, I strongly believe that the fairest and most efficient solution to the use of tobacco is omnibus legislation such as the Hatch–Feinstein bill, rather than relying on dubious legal lawsuits. Litigation cannot effectively deal with im- portant public policy problems such as what measures the industry must take to reduce youth smoking or to what effect will rising prices have on the black market for cigarettes. The courts indeed have never been considered the proper institu- tion to determine such policy. The