THE HEADLINE IN the Daily Profit screamed: A LOUSY HUNDRED MILLION AIN'T ENOUGH. And things got worse after that. The story began with a quick paragraph about the "frivolous" lawsuit filed yesterday in D.C. against Goffman, one of America's finest consumer products companies. Its wonderful drug Maxatil had helped countless women through the nightmare of menopause, but now it was under attack by the same sharks that had bankrupted A.H. Robins, Johns Manville, Owens-Illinois, and practically the entire American asbestos industry.
The story hit its stride when it went after the lead shark, a brash young D.C. hotshot named Clay Carter who, according to their sources, had never tried a civil lawsuit before a jury. Nonetheless, he had earned in excess of $100 million last year in the mass tort lottery. Evidently, the reporter had a trusted stable of ready sources. The first was an executive with the U.S. Chamber of Commerce, who railed against lawsuits in general and trial lawyers in particular. "The Clay Carters of the world will only inspire others to file these contrived suits. There are a million lawyers in this country. If an unknown like Mr. Carter can earn so much so fast, then no decent company is safe." A law professor at a school Clay had never heard of said, "These guys are ruthless. Their greed is enormous, and because of it they will eventually choke the golden goose." A windy Congressman from Connecticut seized the moment to call for immediate passage of a class-action reform bill he'd authored. Committee hearings would take place, and Mr. Carter just might be subpoenaed to testify before Congress.
Unnamed sources within Goffman said the company would defend itself vigorously, that it would not yield to class-action blackmail, and that it would, at the appropriate time, demand to be reimbursed for its attorneys' fees and litigation costs due to the outrageous and frivolous nature of the claims.
The company's stock had declined 11 percent, a loss of investors' equity of about $2 billion, all because of the bogus case. "Why don't the shareholders of Goffman sue guys like Clay Carter?" asked the professor from the unknown law school.
It was difficult material to read, but Clay certainly couldn't ignore it. An editorial in Investment Times called upon Congress to take a serious look at litigation reform. It too made much of the fact that young Mr. Carter had made a large fortune in less than a year. He was nothing but a "bully" whose ill-gotten gains would only inspire other street hustlers to sue everyone in sight.
The nickname "bully" stuck for a few days around the office, temporarily replacing "The King." Clay smiled and acted as if it was an honor. "A year ago no one was talking about me," he boasted. "Now, they can't get enough." But behind his locked office door he was uneasy and fretted about the haste with which he had sued Goffman. The fact that his mass tort pals were not piling on was distressing. The bad press was gnawing at him. There had not been a single defender so far. Pace had disappeared, which was not unusual, but not exactly what Clay needed at the moment.
Six days after filing the lawsuit, Pace checked in from California. "Tomorrow is the big day," he said.
"I need some good news," Clay said. "The government report?"
"Can't say," Pace replied. "And no more phone calls. Someone might be listening. I'll explain when I'm in town. Later."
Someone might be listening? On which end—Clay's or Pace's? And who, please? There went another night's sleep.
The study by the American Council on Aging was originally designed to test twenty thousand women between the ages of forty-five and seventy-five over a seven-year period. The group was equally divided, with one getting a daily dose of Maxatil, the other getting a placebo. But after four years, researchers abandoned the project because the results were so bad. They found an increase in the risk of breast cancer, heart disease, and stroke in a disturbing percentage of the participants. For those who took the drug, the risk of breast cancer jumped 33 percent, heart attacks 21 percent, and strokes 20 percent.
The study predicted that for every hundred thousand women using Maxatil four years or more, four hundred would develop breast cancer, three hundred would suffer some degree of heart disease, and there would be three hundred moderate to severe strokes.
The following morning the report was published. Goffman's stock got hammered again, dropping to $51 a share on the news. Clay and Mulrooney spent the afternoon monitoring Web sites and cable channels, waiting for some response from the company, but there was none. The business reporters who'd scalded Clay when he filed the suit did not call for his reaction to the study. They briefly mentioned the story the following day. The Post ran a rather dry summary of the release of the report, but Clay's name was not used. He felt vindicated, but ignored. He had so much to say in response to his critics, but no one wanted to listen.
His anxiety was relieved by the deluge of phone calls from Maxatil patients.
THE GULFSTREAM FINALLY HAD to escape. Eight days in the hangar, and Clay was itching to travel. He loaded up Ridley and headed west, first to Las Vegas, though no one around the office knew he was stopping there. It was a business trip, and a very important one.
He had an appointment with the great Dale Mooneyham in Tucson to talk about Maxatil.
They spent two nights in Vegas, in a hotel with real cheetahs and panthers on display in a fake game preserve outside the front entrance. Clay lost $30,000 playing blackjack and Ridley spent $25,000 on clothes in the designer boutiques packed around the hotel's atrium. The Gulfstream fled to Tucson.
Mott & Mooneyham had converted an old train station downtown into a pleasantly shabby suite of offices. The lobby was the old waiting area, a long vaulted room where two secretaries were tucked away in corners at opposite ends, as if they had to be separated to keep the peace. On closer inspection, they seemed incapable of fighting; both were in their seventies and lost in their own worlds. It was a museum of sorts, a collection of products that Dale Mooneyham had taken to court and shown to juries. In one tall cabinet was a gas water heater, and the bronze placard above the door gave the name of the case and the amount of the verdict—$4.5 million, October 3, 1988, Stone County, Arkansas. There was a damaged three-wheeler that had cost Honda $3 million in California, and a cheap rifle that had so enraged a Texas jury that it gave the plaintiff $11 million. Dozens of products—a lawn mower, a burned-out frame of a Toyota Celica, a drill press, a defective life vest, a crumpled ladder. And on the walls were the press clippings and large photos of the great man handing over checks to his injured clients. Clay, alone because Ridley was shopping, browsed from display to display, entranced with the conquests and unaware that he had been kept waiting for almost an hour.
As assistant finally fetched him and led him down a wide hall lined with spacious offices. The walls were covered with framed blowups of newspaper headlines and stories, all telling of thrilling courtroom victories. Whoever Mott was, he was certainly an insignificant player. The letterhead listed only four other lawyers.
