Payola Justice: How Texas Supreme Court Justices Raise Money from Court LitigantsHome

home | table of contents | previous | next


War-Chest Justices

There was much more variation in the total amount of money raised by the seven justices studied here then there was in the share of money that each justice took from contributors with close links to the courts' docket. Justice Hecht and Justice Gonazlez–the only Democrat studied–led the fundraising pack with close to $2 million each. Four justices (Phillips, Cornyn, Owen and Baker) filled in the middle tier, raising between $1 million and $1.5 million. Finally, Justice Abbott, raised $689,918.

The share of the justices' contributions linked to the docket ranged from a high of 46 percent (Justices Abbott and Cornyn) to a low of 32 percent (Justice Owen). But this variation appears to have more to do with the date of a justice's last election than it does with individual fundraising practices. Note that the three justices who had less than 40 percent of their money linked to the court's docket raised their money in the 1994 cycle. By contrast, the justices with greater money links to the docket did their fundraising in the 1996 cycle. There were several reformist pushes for better contribution reporting in the early 1990s, reforms that noticeably improved contribution reporting in the 1996 cycle. Not surprisingly, more complete reporting makes it easier to detect contributor links to the court
docket.19

All 7 Justices Practice
Docket-Driven Fundraising

Justice Contributions > $100 Money Linked To Docket Docket- Linked $ (%) Election Cycle Studied
Raul Gonzalez, D $1,976,656 $757,076 38% 7/1/93 – 12/31/94
Nathan Hecht, R $1,932,341 $723,440 37% 7/1/93 – 12/31/94
Thomas Phillips, R $1,339,311 $575,969 43% 7/1/95 – 12/31/96
John Cornyn, R $1,094,623 $499,923 46% 7/1/95 – 12/31/96
Priscilla Owen, R $1,081,773 $351,156 32% 7/1/93 – 12/31/94
James Baker, R $1,051,728 $458,764 43% 7/1/95 – 12/31/96
Greg Abbott, R $689,918 $324,035 46% 7/1/95 – 12/31/96
Total $9,166,350 $3,690,363 40%  


There is no question that more complete reporting aids the detection of links between contributors and the docket. When, for example, the focus is narrowed to contributions from sources for which employer data was provided or uncovered,20 the share of money linked to the docket rises an average of four percentage points for each justice. Looking just at these data, the percentage of docket-linked money ranges from 38 percent (for Justice Owen) to 48 percent (for Justice Abbott).

Cake Walks
Few of the seven justices were compelled to raise so much tainted money by political necessity. Five of the justices (Gonzalez, Phillips, Cornyn, Baker and Abbott) enjoyed dizzying financial advantages, raising between 14 times and 1,425 times what their main general election opponent had to spend21. Justice Hecht raised almost three times what his chief opponent had. Justice Owen was the only one of the seven who raised less money than her chief opponent, though the difference was so small that she and Democrat Jimmy Carroll ran with comparable amounts of money.

Few Justices Needed
Tainted Money To Win

Justice All Money Raised Losing Opponent Loser's Money * Winner's Funding Advantage Winner Share of Vote (Prmry) Winner Share of Vote (Gen'l)
Raul Gonzalez $2,038,760 John Hawley $11,628 175X 42% 81%
Nathan Hecht $2,052,989 Alice Oliver-Parrott $738,748 3X 61% 56%
Thomas Phillips $1,386,903 Andrew Kupper $20,056 69X 100% 56%
John Cornyn $1,160,979 Patrice Barron $85,704 14X 100% 52%
Priscilla Owen $1,171,665 Jimmy Carroll $1,286,185 0.9X 100% 57%
James Baker $1,097,980 Gene Kelly $3,288 334X 100% 54%
Greg Abbott $712,309 John Hawley $500 1,425X 100% 84%
Total $9,621,585   $2,146,109      

* Greater of amount raised or spent. Election cycle is same as in previous table.

When the same general election races are analyzed by outcome, only two justices ran a close race, which is defined as one won by 55 percent of the vote or less. Justices Cornyn and Baker ran these squeaker races, despite respectively having raised 14 times and 334 times the amount of money that their chief opponents had at their disposal.

While politicians sometimes must also raise and spend money to win their party's primary, just two of these justices faced such a hurdle. Five of the Justices (Phillips, Cornyn, Owen, Baker and Abbott) won 100 percent of the vote in uncontested primaries. Justice Hecht was the only Republican facing a primary challenge, winning 61 percent of the vote over challenger Charles Howell in 1994. Finally, that same year Democrat Raul Gonzalez faced two challengers for the Democratic ticket, winning the nomination with 42 percent of the vote.

While few of the seven justices faced tough financial challenges from opponents, Justices Phillips and Abbott arguably had the least need to go out on a limb and raise money from docket-linked sources. Neither of these men faced a primary challenger or faced serious political or financial competition in the general election.

PAYOLA CASE STUDY #5

Dead Men Walking

American Petrofina et al. v. Russell Allen et al.

Almost 1,000 Gulf Coast petrochemical workers sued 55 corporate defendants to recover damages for on-the-job exposure to cancer-causing asbestos fibers.

Petrofina Pipeline
Top Post-Decision Donations to Gonzalez & Hecht

Petrofina Defendant or
Defense Firm
Top Gonzalez & Hecht Contribs, 2/2/94-4/2/94
Baker & Botts $22,800
Dow Chemical $13,000
Bracewell & Patterson $8,950
Exxon $6,500
Fina Oil & Chemical $5,500
Phillips Petroleum $4,000
ARCO Chemical $3,000
Diamond Shamrock $3,000
Hoechst Celanese Corp $3,000
Texas Chemical Council $3,000
Total $72,750

Complaints against 39 of the defendants were filed after the expiration of Texas' statute of limitations, which requires suits to be filed within two years of a wrongful death. Attorneys for the dead workers argued that the corporate defendants fraudulently concealed evidence of the victims' asbestos exposure. The plaintiffs contended that the statute of limitations should be clocked from the time that the alleged fraud was uncovered, instead of the earlier time of the plaintiffs' deaths. While the trial court rejected this argument, the appeals court reversed the lower court decision and affirmed this plaintiffs' argument.
In a February 2, 1994 opinion, the Supreme Court unanimously upheld the trial court's decision, holding that the plaintiffs failed to prove their allegations that the defendants fraudulently concealed evidence of wrongful deaths. This case is notable for the huge sums of money that dozens of corporate defendants—and their lawyers—contributed to two of the presiding Supreme Court justices within two months of this decision.
At the time of the 1994 Petrofina decision three of the seven justices studied in this report were on the bench (Justices Phillips, Gonzalez and Hecht). Of these, Justices Gonzalez and Hecht were running for office and taking contributions in the first half of 199422. Justices Gonzalez and Hecht took $91,952 from the employees and PACs of Petrofina defendants and their law firms in the two months following the decision. Justice Gonzalez outmaneuvered Justice Hecht, raising $84,252, or 92 percent of this docket-linked money. The plaintiff lawyers did not contribute to these justices.23


A large chunk of the money that Justice Gonzalez accepted from Petrofina defendants and their lawyers came in bundles. In the first six months of 1994, Justice Gonzalez accepted nine bundles in which at least three people employed by the same Petrofina defendant or defense law firm contributed money on the same day. The nine Petrofina bundles were worth $23,350.

Gonzalez's Top Petrofina Bundles

Petrofina Defense Employer Total $ Date # of Checks
Exxon $6,200 4/1/94 13
Bracewell & Patterson $5,450 3/28/94 4
Baker & Botts $2,550 4/1/94 12
Ramey & Flock $2,200 4/8/94 3
Shell Oil $2,050 4/1/94 6
Total $18,450   38



Regardless of what happens in the court room, when Fortune 500 defendants drop tens of thousands of dollars on two justices within two months of a toxic wrongful death suit, the public will wonder whether the justices are serving their paymasters or serving justice. The seven justices studied here have taken a total of $537,318 from Petrofina defendants and their lawyers in the period covered by this report.


home | table of contents | previous | next