Proposition 65 Advisory

Proposition 65 Advisory 99-I

"Toxic Fee Fight: Prop. 65 Group Sues Attorney"
or
"Reaping What You Sow? Prop 65 Attorney Sued"

We believe that clients and other friends of our firm will find interest in the following information extracted from an article in The Recorder dated January 26, 1999, a San Francisco legal newspaper.

Since 1992, attorney Clifford Chanler, a leading Proposition 65 enforcer, and his Oakland based client, As You Sow (a non-profit organization he helped form with a college friend) earned millions of dollars as they filed complaints against hundreds of California companies over alleged violations of Proposition 65. Now the two are in litigation over the money As You Sow has been awarded in attorneys fees from settlements deriving from these lawsuits.

On January 19, As You Sow sued Chanler in San Francisco Superior Court (Case No. 300622) alleging that he illegally pocketed attorneys fees on the Proposition 65 cases he brought on behalf of As You Sow. In particular, the complaint alleges that Chanler has collected $6.46 million in fees on $8.2 million in fines, penalties and fees collected by As You Sow in connection with these enforcement actions. The complaint also points out that Chanler has never provided this client with a billing record to explain his fees. More accusations include allegations that Chanler gathered information about potential Proposition 65 litigation while working for As You Sow and used it to bring lawsuits for other clients.

As You Sow's attorney, Thomas Hyde of the Hyde Law Corporation, states that they are disappointed because the group exists to further the environmental movement, and they are very distressed to find that a substantial amount of the money to further their cause has been recovered "by Cliff for Cliff." Chanler, through his public relations manager Gary Pike, called the charges "baseless," a "sour grapes kind of litigation," and stated that they stem from Chanler's decision to sever ties with As You Sow. Chanler is now a lawyer in New York. Mr. Pike also states that Chanler's fees and costs reflect the size of his law office. Apparently he had 45 attorneys working for him over the last five years, with three offices in Los Angeles, Marin County and San Francisco. He was also known for hiring experts for the cases as well.

Although the complaint alleges several different allegations, what seems to be the main focus is Chanler's fees including overbilling of attorney hours and office expenses and pocketing settlement payments (for reasons Chanler states is because of unpaid bills). Chanler argues that if As You Sow had any doubt on whether the fees should be paid they should have refused to sign the settlement agreements. As You Sow does not believe that the tremendous fees that Chanler has realized on behalf of the group are consistent with the underlying engagements. Either way, As You Sow and Chanler have long been controversial figures among the defense community and other environmental prosecutors. Critics of both have accused them of being fixated on attorneys fees. The As You Sow complaint indicates the group was formed for the sole purpose to enforce Proposition 65 through investigation, litigation, injunctive relief and penalties. It goes on to say that Chanler formed the group purely as a money-making venture. Chanler has been known to be unapologetic about his earnings from Proposition 65 cases.

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