On Aug. 3, 2006, then-N.M. Attorney General Patricia Madrid signed a contract granting a Houston law firm the right to sue a big pharmaceutical company on behalf of the State of New Mexico.
Approximately seven weeks later, on Sept. 27 of that year, the law firm, now called Bailey Perrin Bailey, gave $25,000 to the campaign of the man who would replace Madrid in that office at the beginning of 2007, current AG Gary King. And about three weeks after the first contribution — on Oct. 18, 2006 — the law firm gave another $25,000 to King, who like Madrid is a Democrat.
The contributions, which I wrote about last week, are revealed on the money-in-politics Web site FollowTheMoney.org. The potentially lucrative 2006 contract — and a one-year extension granted by King in 2008 — were obtained from King’s office this week in response to a public records request.
Click here to read both contracts.
The massive campaign contributions came under scrutiny when the Wall Street Journal accused the law firm, King and some other Democratic state attorneys general last week of engaging in a “pay-to-sue” scheme. The newspaper alleges that Houston lawyer F. Kenneth Bailey has taken a “pre-packaged lawsuit” against Janssen Pharmaceuticals to a number of states and convinced their AGs to get involved by giving them big campaign contributions.
It’s an allegation King said last week is false.
The attorney general painted a different picture: The business-friendly newspaper, King said, is being used as the latest assault by the U.S. Chamber of Commerce and drug companies that are trying to stop “activist attorneys general” from taking on big business. In 2006, King said, the groups funneled $650,000 to his GOP opponent through the Republican Leadership Council. Lawyers such as the Bailey firm, he said, are giving contributions to the other side in the battle.
Either way, King isn’t the first Democratic politician in New Mexico to whom the law firm has given money. According to FollowTheMoney.org, in 2002 the firm gave $25,000 to Madrid and another $25,000 to Gov. Bill Richardson. And in 2005, Bailey gave $10,000 to Richardson.
The original contract given to the firm by Madrid in 2006 followed a competitive bidding process. In 2008, King extended the contract without soliciting bids. Last week, he said that was done because it wouldn’t make sense to change attorneys in the middle of a lawsuit.
The lawsuit is ongoing. The contracted can be extended each year until it’s complete, King said.