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Special Interests Tip the Scales of Justice in Favor of Corporations

Posted: 08/30/2012 8:00 am

Americans are rightly concerned about significant sums of corporate campaign cash capturing their elected representatives. Even more troubling, though less reported, is the flood of campaign money that has poured into elections for state court justices over the last two decades. Judges are supposed to be independent, fair arbiters of justice. In the Citizens United era, however, judges will increasingly face a choice between siding with the law, or siding with special interests that can spend unlimited sums on their re-elections.

In just the last 12 years, state supreme courts have seen exponentially expensive races, with candidates raising nearly $250 million. The states which have seen the most judicial campaign money - Alabama, Texas, Michigan, Ohio - now have high courts dominated by judges funded by corporate interests. When pro-corporate judges control the bench, individuals suing corporations face higher hurdles. In a recent Center for American Progress report, we examined cases at these courts from 1992-2010, to get a sense of how the law changed after elections for the courts were flooded with special interest money.

With money playing such a large role in judicial elections, the interest groups with the most money increasingly have an advantage. In courtrooms across our country, big corporations and other special interests are tilting the playing field in their favor.

For example, the insurance industry in Ohio was dissatisfied with rulings against insurance companies and began donating heavily to the campaigns of friendly judicial candidates, who upon taking a seat on the bench -- then abruptly reversed those rulings. After the Alabama Supreme Court developed a reputation for sticking up for consumers in arbitration cases, the state's chamber of commerce and other business groups inundated pro-corporate candidates with campaign cash. Contributions from Alabama's Chamber of Commerce accounted for 40 percent of all campaign contributions in the most recent high court election in the state. And the new, corporate-funded justices are more likely to throw consumers out of court and into binding arbitration, which many view as inherently biased toward corporate parties.

Decisions in state courts, which hear 95 percent of legal disputes in the United States, have important consequences on ordinary citizens. One of the unfortunate plaintiffs in Alabama, Kimberly White, gave the title to her car as collateral for a short-term loan. She made two interest payments -- the equivalent of a 300 percent annual interest rate. She then paid off the loan and got her title back. Alabama Title Loans nevertheless repossessed her car a few months later. As she handed the tow-truck driver the documentation of her repayment, she says he pushed the gas and nearly ran over her. She grabbed the door of the truck, and a passenger allegedly pulled her inside, forcing her into the backseat.

She sued the driver and the lender for assault and wrongful repossession. In July 2011, the Alabama Supreme Court forced White into arbitration, ruling that a binding arbitration clause remained in effect, even after she paid off the loan.

Examples like these are part of a broader trend. In our report, we examined case law from the six states that have seen the most campaign funds since 1992, looking at rulings in cases in which an individual sued a corporation. The states that have seen the most campaign spending have high courts dominated by judges that favor corporate defendants over individual plaintiffs.

A citizen might sue a corporation for a variety of reasons -- an unsafe workplace, a dangerous product, or botched medical treatment. How can an ordinary citizen expect a fair trial if the judges hearing the case are funded by big corporations? Special interests are competing for influence in judicial races around the country, but in the states which have seen the most money, corporate special interests dominate fundraising.

The problem of corporate money infecting our state judicial system will only get worse. Spending by "independent" groups has becoming pervasive in judicial elections, as documented by Justice at Stake and the Brennan Center. North Carolina is the one state with a wide-scale public financing system for judicial elections, but the U.S. Supreme Court's Citizens United decision has now opened the door to limitless, "independent" SuperPAC spending in the state's judicial elections. All this campaign cash means judges spend more time focused on fundraising than on the law.

With judges backed by big business taking over our courts, are there any remaining institutions that can hold powerful corporations accountable? Americans will have a harder time using the courts to force employers and manufacturers not to cut back on safety to save money. Consumers will face steeper hurdles in holding accountable banks, payday lenders, and credit card companies that treat them unfairly.

Big business is tightening its grip on our courts. Instead of serving as a last resort for Americans seeking justice, judges are bending the law in a manner that satisfies the concerns of their corporate donors.

Andrew Blotky is the Director of Legal Progress at the Center for American Progress. Billy Corriher is the Associate Director for Research at Legal Progress and author of the recent Center for American Progress report, "Big Business Taking over State Supreme Courts."

This post is part of the HuffPost Shadow Conventions 2012, a series spotlighting three issues that are not being discussed at the national GOP and Democratic conventions: The Drug War, Poverty in America, and Money in Politics.

HuffPost Live will be taking a comprehensive look at the corrupting influence of money on our politics August 29th and September 5th from 12-4 pm ET and 6-10 pm ET. Click here to check it out -- and join the conversation.

 
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HUFFPOST SUPER USER
Kye154
11:25 PM on 08/30/2012
America is one of the few industrialized world places where a judge can obtain the office, by either getting election or appointed without any credentials or training as a justice at all. In Europe, the judges are required to graduate from a judgeship school. They are required to be politically unaffiliated, and appointments are done by a commission, not by a governor or a president. Our justice system is really ameturish and reeks with corruption.
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HUFFPOST SUPER USER
Kevin Boers
I'm a dinosaur
01:21 AM on 08/31/2012
Interesting concept making prospective judges go to a school but not sure about the commission idea though, someone has to appoint the commissioners, presumably the government of the day so they can be rigged and thus which judges are appointed can be rigged.

What I prefer is that judges, once they have "passed", are put into a pool and then the names are put into a hat when a new judge needs to be appointed pull one out and, further, that their tenure is limited much like the president. And it is a serious idea, the ancient Greeks used to appoint people to public office in the same way.
HansB
The only good certainty is a dead certainty
05:17 AM on 08/31/2012
In Europe it is true our judges are not elected, and at present the system works rather well. But of course someone has to appoint them, and it's rather easy to imagine this process being corrupted. For example, in France there is a short route to judgeship for former gendarmes. I'll let you guess how often these former cops with minimal legal training rule in favor of the person who complains of police abuse.

It was distrust of this appointing process which probably led Americans to opt for an elective system - in the days when money did not play such a big role in campaigns.

I think that whatever the system of nomination of judges, the public has to be vigilant that the judicial branch remains true to a high standard of ethics. The most alarming thing I see happening in the US - from afar, 't is true - is a breakdown of those ethics. The only thing that counts in today's America is winning.

In France, former prime minister Juppé was once let off the hook for allotting a publicly owned luxury appartment to his son: that was not corruption, it was ruled, because Juppé had not profited personally from the act, just his son. That incident as well as others showed the judiciary served to protect executive power rather than challenge it, and led to criticism and change as exemplified by the guilty verdict in the trial of former president Chirac himself.
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moviefantastic
The truth shall set you free
09:02 PM on 08/30/2012
One of the commercials for BP comes to mind, and all the millions they've poured into the gulf coast region.

Did they do that voluntarily? Did they pick the amount? Or did the FED's force them. And the lawsuits.

Imagine the judiciary in their pocket.
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demisfine
Often correct, NEVER right.
08:33 PM on 08/30/2012
"Tip"??
Has the definition been redefined to mean, "All out lop-sided movement in one direction"?
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HUFFPOST SUPER USER
Human1984
Old Angry Liberal Patriot
07:11 PM on 08/30/2012
Ever since Big business/money bought out our courts, lawyers, and lobbyists, the common people do not stand a chance. There is no justice in America, it is law for the highest bidder, and the rich won.
It will not last, it is only a matter of time... it is just too bad it has to come to this.
07:10 PM on 08/30/2012
An interesting aside: in Santa Clara County v. Southern Pacific Railroad, the 1886 Supreme Court decision frequently cited as holding at corporations were people for purposes of the 14th Amendment, the court never actually said that in its opinion. It was a comment made by the Chief Justice that the reporter included in his summary, which was later cited by the court as precedent for the principle. The only reason the comment was included was that the reporter was instructed to do so by Associate Justice Stephen J. Field. The only reason Justice Field told him to do so was that Field was on the payroll of the Southern Pacific Railroad at the time.
HansB
The only good certainty is a dead certainty
05:23 AM on 08/31/2012
It's not really an "aside": it blows a hole the size of an iceberg in the Citizens United ruling. I find it hard to imagine that the five justices who ruled in favor of corporate personhood were unaware of the fact that Field had been unable to get an actual ruling to that extent, and simply had it added as a clerk's comment.
12:36 PM on 08/30/2012
To be objective you should recognize when an article is one-sided and when it is balanced. This one was one-sided. It did not state the facts of the cases -- of what reasons the courts gave to rule one way or the other -- it only implied that the rulings were bad because the rulings were supposedly based on who gave them money. Let's hope that our judges do not do what the author of this article does -- automatically rule for the underdog or for the corporations - simply because they are the underdog or are a corporation. Who the plantiff or defendent is not relevant. Let's hope they instead understand the law, the moral basis for each law, and rule objectively on the facts of the case. By the way, is the author saying that "elected" judges are unfair? No matter what the circumstances, there will always be those who voted for the other guy. Perhaps the author believes that judges should not be political and therefore appointed instead of "elected". But appointments seem to be political as well nowadays. Perhaps judges should be selected from career judicial employees -- the same way we choose generals in the armed forces.
10:44 AM on 08/30/2012
Sadly you will find that most if not all these corporate favoring judges are Republican.

Folks it's not just our justice system that's been taken over I'm afraid big business has taken over the entire country from top to bottom.

Unfortunately apathy and politics that keeps "we the people" preoccupied with our own bickering has paved the way. I don't see any change for the good of the people anytime soon and that's the saddest part of all this.
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Chef Typhoid Mary
Taxes are what we pay for civilized society.
09:29 AM on 08/30/2012
Read Robinson and Acemoglu, Why Nations Fail. The economy can be "inclusive" or "extractive". And Inclusive economy promotes inventiveness and innovation, and allows many people a larger part of the pie. When Reagan took over, the economy began to shift more and more toward an extractive one--Caterpillar's actions (huge profits combined with squeezing the unionized work force) are textbook extractive. As this country moves toward entirely extractive, the general population loses any reason to produce more than they are forced to--no incentive. After that, globalization means that the entire world economy becomes completely extractive--a plutocracy. Plutocracies are why nations fail--once the population is exhausted and the resources are exhausted, then economy collapses, and it doesn't take long. Economists are always on the backside of trends. They promote ideas they think might work, then slowly change their minds when those theories don't work. However, the ones who promote what the rich prefer do themselves get rich.