Payola Justice: How Texas Supreme Court Justices Raise Money from Court Litigants
home | table of contents | previous | next
Corporate Friends of the Court
Direct contributions by the PACs and executives of 50 corporations supplied 15 percent ($1.4 million) of the money that the seven justices raised. Houston-based Enron, America's largest natural gas corporation, has been the most lucrative corporate pipeline fueling the justices' war chests. During the period studied, Enron had three cases before the court and its executives gave the seven justices at least $78,700. Two San Antonio firms were the next largest source of contributions. Top executives at H.B. Zachry construction company contributed $61,200, while the top brass at Kinetic Concepts, a manufacturer of high tech hospital beds, gave $57,800.
Top Corporate Court Boosters
Company | Funding of 7 Justices | Supreme Cases |
Industry |
Base |
Enron Corp. | $78,700 | 3 | Electricity/Gas | Houston |
H. B. Zachry Co. | $61,200 | Construction | San Antonio | |
Kinetic Concepts | $57,800 | Hospital beds | San Antonio | |
TRT Holdings | $52,595 | Energy/Hotels | Corpus | |
H.E.B. Grocery Co. | $52,169 | 1 | Grocery retail | San Antonio |
United Services Auto Asc. | $42,250 | Financial services | San Antonio | |
Coastal Corp. | $41,600 | 2 | Energy | Houston |
Wagner & Brown Ltd. | $41,000 | Energy/Investments | Midland | |
Hunt Oil Co. | $40,950 | Energy/Development | Dallas | |
O'Connor & Hewitt Ltd. | $40,142 | Oil/Investments | Victoria | |
Houston Industries | $36,350 | 6 | Electricity | Houston |
Beecherl Investments | $34,486 | Development | Dallas | |
Weekley Homes/Properties | $33,000 | Development | Houston | |
Texas Utilities | $32,600 | 2 | Electricity | Dallas |
Rutherford Oil Co. | $31,250 | Energy | Houston | |
Dow Chemical | $30,100 | 3 | Chemicals | Midland, MI |
Halliburton Co. | $29,900 | Energy | Houston | |
Sterling Chemicals | $28,500 | Chemicals | Houston | |
Exxon Co. | $27,750 | 4 | Energy | Houston |
Contran Corp. | $27,500 | Corporate raids | Dallas | |
David Weekley Homes | $27,000 | Home building | Houston | |
Farmers Insurance Group | $26,859 | Insurance | L. A. | |
Red McCombs Enterprises | $26,743 | Auto retail | San Antonio | |
Denitech Corp. | $25,203 | Copier leasing | Irving | |
Valero Energy | $24,850 | Energy | San Antonio | |
Texas Instruments | $24,600 | Electronics | Dallas | |
Brown & Root Inc. | $23,600 | Construction | Houston | |
Cogen Technologies | $21,000 | Electricity | Houston | |
Union Pacific | $20,978 | 1 | Railroad | Fort Worth |
Helena Laboratories | $20,414 | 1 | Lab equipment | Beaumont |
Total | $1,061,089 | 23 |
Executives of two other leading sources of
corporate funds, TRT Holdings and H.E.B. Grocery, accounted for more than
$50,000 each. Like Enron, HEB had a case before the court during the period
studied. HEB now has another case pending before the Supreme Court.
HEB Grocery Co. v. Bilotto is a premises liability lawsuit filed by
a plaintiff who slipped and fell on an HEB property. Charles Butt still
wines and dines the court; on October 21, 1997, he contributed $5,000 to
the San Antonio campaign kick-off for Justice Craig Enoch, an event that
Butt graciously hosted in his home. Other major corporate contributors
that also happen to pop up on the court's docket include: Tenneco, NationsBank,
Diamond Shamrock, American General, Southwestern Bell and Shell Oil.
PAYOLA CASE STUDY #1 'Twofer' Tax Relief In HEB Grocery Co. v. Jefferson County,
the Court reversed an appeals court decision to rule that HEB, which operated
six grocery stores in Jefferson County throughout 1992, should be permitted
to pay inventory taxes on just one of its six stores there. |
Executive Decisions
The largest individual contributors
to the justices also are overwhelmingly drawn from top executives in corporations
in which the bottom line is influenced—sometimes directly—by court decisions.
The extent to which corporate giving is channeled through top executives
is illustrated by the fact that many of these executives listed here are
from the same companies mentioned above. Often all—or almost all—of the
money that the justices took from a corporation came from its top executives.
The Court's Top Business-Class Supporters
Family | Funding of 7 Justices | Firm | Industry | Top TLR* Funder? |
Dick/David Weekley | $60,000 | Weekley Homes/Properties | Home/mall building | X |
Charles Butt | $53,098 | HEB Grocery Co. | Grocery chain | X |
Reese/Rob't Rowling | $52,195 | TRT Holdings/Omni Hotels | Energy/Hotels | X |
James Leininger | $49,300 | Kinetic Concepts Inc. | Hospital beds | X |
Ray Hunt | $40,000 | Hunt Oil | Energy/Development | X |
HB/JP Zachry | $37,600 | H.B. Zachry/Tower Insurance | Construction/Insurer | X |
Louis Beecherl, Jr. | $32,486 | Beecherl Investments | Oil & gas | X |
Gordon Cain | $32,000 | Sterling Chemicals | Chemicals | X |
Pat/Mike Rutherford | $31,250 | Rutherford Oil | Oil & gas | X |
Peter O'Donnell, Jr. | $30,000 | First National Bank | Banking | X |
Harold Simmons | $27,500 | Contran/Valhi | Corporate raiders | X |
Dennis O'Connor | $25,800 | O'Connor & Hewitt Ltd. | Oil/Ranching | |
Dennis Berman | $25,203 | Denitech Corp. | Copier leasing | |
Kenneth Lay | $24,500 | Enron Corp. | Gas/Electricity | X |
Tipton Golias | $20,414 | Helena Laboratories | Lab testing kits | |
David Dewhurst | $20,000 | Falcon Seaboard Resources | Oil & Gas/Electricity | |
Total | $561,353 |
* (Texans
for Lawsuit Reform)
A striking characteristic of the top 16 individual
families contributing to the justices' political campaigns is that 12 of
them are major contributors to Texas' best-financed special-interest group,
Texans for Lawsuit Reform (TLR), each having given the group at least $10,000.
In fact, only two of the top 15 (the families of David Dewhurst and Tipton
Golias) have not contributed to TLR. Many of these top supporters of TLR
and the justices make lucrative livings in companies that attract lawsuits.
TLR President Richard Weekley heads a strip mall development company (Weekley
Properties) and owns part of David Weekley Homes. The Weekley brothers
families contributed $60,000 to court justices in the period studied, making
the justices more indebted to them than any other Texas family. At least
part of the Weekley family's personal interest in the courts and the weakening
of tort laws stems from its business. David Weekley Homes has been sued
by dozens of angry customers, who allege, for example, that the company
knowingly built inadequate foundations on shifting soils, causing new homes
to crack.
After the Weekleys, the justices are most indebted to the San Antonio-based
Butt family. The Butt family gave the justices $53,098, with 90 percent
coming from HEB grocery chain Chairman Charles Butt. The Butt family's
grocery spent four years in a legal fight with Jefferson County, Texas,
which said HEB owed more property taxes than the company cared to pay.
On May 10, 1996, the Supreme Court ruled for HEB, helping out the justices'
second largest individual contributors (see "Twofer Tax Relief,")
Father and son Reese and Robert Rowling gave the justices $52,195.
Texaco paid the Rowlings $477 million for their Tana Oil company in 1987.
The family's TRT Holdings diversified this money, buying up: one-third
of downtown Corpus Christi, control of Corpus Christi National Bank and
$500 million worth of Omni Hotels.
The next family willing to contribute tens of thousands of dollars to Supreme
Court campaigns is that of James Leininger. This San Antonio-based owner
of a high-tech hospital bed manufacturing company, Kinetic Concepts, gave
the justices $45,500. Leininger also is a major TLR supporter, as well
as a leading funder of numerous conservative candidates and causes. His
company has been the target of lawsuits and Food and Drug Administration
complaints involving patients who contend that they have been thrown from,
crushed or strangled by Kinetic hospital beds.
It is no coincidence that some of the strongest supporters of TLR and the
seven justices are executives from companies that have had cases before
the court or that confront the kinds of serious liability issues that characterize
the chemical, oil and gas, construction and medical device industries.
Many of these industries are investing heavily in litigation protection
from the claims of injured employees, neighbors and customers.
PAYOLA CASE STUDY #2 Executive Hanky Panky Helena Labs v. Snyder
|
home | table of contents | previous | next