Counting Cash in Candidates' Campaign Coffers

By Mary Alice Robbins and John Council
Texas Lawyer


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While other Texas Supreme Court candidates are scrambling for campaign cash, Chief Justice Tom Phillips is turning down contributions to protest what he calls Texas' dysfunctional method of selecting judges. Well, all but one contribution -- the $5,000 he received last year from George W. Bush's gubernatorial campaign.

Supreme Court watchers and politically active lawyers say Phillips' announcement may be the kind of statement that moves the Texas Legislature to reform the way the state chooses its judges.

"It's worth it to me [not to accept contributions] because at this stage of my career I don't have to have this office any more," says Phillips, who's been on the state's highest civil court since 1988 and served as a trial judge for seven years prior to that. "I'd like to run a campaign that just sees what can be done differently," he says.

With the money in his campaign account and funds left over from previous campaigns, Phillips estimates that he'll have about $20,000 to spend.

Most candidates for the five contested seats on the Texas Supreme Court raised thousands of dollars, according to their most recent campaign finance reports to the Texas Ethics Commission; the reports had to be postmarked by July 15. The reports include donations made during the first half of the year.

The total funds raised range from $5,000 brought in by the shoestring Place 4 campaign of Republican Steven Wayne Smith to nearly $400,000 raised by Houston district judge Dale Wainwright, who won a runoff in April to become the Republican nominee for the Place 2 seat.

Most of the money given to Supreme Court candidates comes from firms, individuals and a smattering of political action committees. [See "Recent Contributions to Texas Supreme Court, Attorney General Candidates," page 18.]

No Money, Big Gesture

Court watchers say Phillips' decision not to accept contributions could add fuel to his more than decade-long push to change a system in which judges depend on the money they receive from lawyers and parties with cases before them to get elected.

Phillips favors gubernatorial appointments of judges who would face retention elections to keep their posts, but he says other reforms, such as shortening the duration of judicial campaigns, elimination of partisan elections for judges and public funding, would help.

"It is certainly a dramatic gesture that, with luck, will focus the Legislature's attention on the situation," says James Paulsen, a Supreme Court observer and professor at South Texas College of Law.

Anthony Champagne, a University of Texas at Dallas political science professor, says Phillips is making "an incredible statement" by not accepting contributions. But Champagne says the gesture could have a negative impact, freeing up more money that can be funneled into the campaigns of other candidates for the court.

Phillips says he isn't asking any other candidate for the Supreme Court to follow his lead and would advise them not to do so. "I don't see that most judges have a choice. I do," he says.

Champagne, a state courts specialist, says Phillips' move may put some pressure on other judicial candidates not to engage in heavy fund raising. "If I were out there trying to raise money for the court [races], I'd be worried this makes me look bad," he says.

But Wainwright, the top money raiser, taking in nearly $400,000 during the last three months for his high court campaign, says he's forced to run a traditional campaign. Wainwright says he's spent most of the money on campaign staff, consultants and travel. He expects to raise double the amount he's already raised before the Nov. 5 election.

"You've got to get the word out. I'd certainly rather not do it," says Wainwright, judge of Houston's 334th District Court. "If it wasn't necessary to raise the funds to get my name and qualifications out there, I wouldn't do it. I think the statement he's [Phillips] making is admirable."

One court watcher says Phillips' gesture is symbolic, yet won't likely have an effect on other Supreme Court races.

"I don't think this puts nearly as much pressure as a well-funded opponent will put," says University of Texas School of Law professor Douglas Laycock, who teaches free speech and other constitutional law issues.

Phillips doesn't face that problem. His Democratic opponent, Liberty lawyer Richard G. Baker, says he isn't soliciting contributions and won't accept any from firms.

"I want to show you can run a good race without soliciting special interest money," says Baker, a shareholder in Baker & Zbranek.

Baker's campaign finance report shows he received only $100 in a single contribution from Victoria attorney Norman D. Jones for the March through June reporting period.

Supreme Money

By all indications, the campaigns for the Texas Supreme Court, with the exception of the chief justice's spot, are shaping up to be million-dollar races if the level of fund raising indicated by the most recent reports continues at its current pace.

One of the most interesting races is the Smith/Margaret Mirabal contest for Place 4 on the court. Smith defeated Republican favorite Xavier Rodriguez in the March 12 GOP primary -- even though Rodriguez was appointed to the court last year by Gov. Rick Perry and spent $558,000 on his race. Shocked political analysts believe Smith won the race because of his ballot-friendly name.

But lawyers and firms have virtually ignored Smith in fund raising, throwing the weight of their contributions behind Mirabal, a Democrat who's served on Houston's 1st Court of Appeals for nearly 14 years. Mirabal raised $200,670, according to her latest campaign contribution report.

"It's not that he's a bad guy. It's that nobody knows him, and he's not experienced," George Bramblett, a partner in Dallas' Haynes & Boone who chairs the firm's political action committee, says of Smith. "At least with Mirabal, she has a record and has been elected, and she's known."

Bramblett believes firms have snubbed Smith because he was the plaintiff's lawyer who filed Hopwood v. Texas, a case that eliminated racial preferences in law school admissions at Texas universities.

"This case that he had is very unpopular, especially among established firms, because it's hurt" firms in minority recruiting, Bramblett alleges. "It's bad for the state."

Smith says he's surprised by the firms' reactions to his candidacy.

"I don't know what their concerns are," Smith, an Austin solo, says of the firms. "The Hopwood case is very popular with the general public, and I'm surprised to learn that the firms are against that."

Smith says he is experienced enough to serve on the court.

"I don't have any judicial experience. I think I'm qualified to do the duty and decide the cases based on my years of legal experience," Smith says.

Mirabal hopes to raise more than $1 million by the end of the election -- enough money to buy television advertising and overcome Smith's name power.

"I am concerned about the name game," Mirabal says. "That's why I plan to go on TV and get my qualifications out there."

Mirabal's dominance in fund raising is the exception. Other Democratic candidates trailed far behind their Republican general election opponents in fund raising.

Democrat Linda Yañez, a justice on the 13th Court of Appeals seeking Place 1 on the court, raised $95,080 during the last reporting period. Her Republican opponent, Michael Schneider, chief justice of the 1st Court of Appeals, raised $351,827 during the same period.

Democrat James Parsons, judge of Palestine's 3rd District Court who's seeking Place 2 on the court, raised $110,197 during the last reporting period. His Republican opponent, Wainwright, raised nearly four times as much during the same period.

Democrat William Moody, judge of El Paso's 34th District Court seeking Place 3 on the court, raised $42,446 during the last reporting period. His Republican opponent, Wallace Jefferson, who was appointed to the court last year by Gov. Perry, raised $316,276, according to his latest report.

Even though some firms gave to both candidates, it shouldn't be surprising that most of the money went to the candidates whose party currently has every seat on the high court, says Cal Jillson, a political science professor at Southern Methodist University.

"Whoever has control of the levers of power gets the most money," Jillson says.

But Jillson expects the donations to the Supreme Court candidates to balloon as the general election approaches.

"What I will watch, sadly, is the interested money that comes in late. If a candidate's race is close, the money is influential," Jillson says. "When the candidates are frantic, that's when it starts to get brutal."

Other Races

While high-dollar contributions have flowed to some Supreme Court candidates, Court of Criminal Appeals candidates have taken little or no money for their campaigns. CCA races are traditionally low-interest affairs that rarely garner donations.

San Antonio Municipal Judge John W. Bull, the Democrat in the Place 1 race, says he's received about $7,000 in small contributions.

Judge Tom Price, the Republican incumbent in that race, did not return a phone call seeking comment by presstime on July 18. His report was not available by presstime.

In Place 2, Republican incumbent Judge Paul Womack and his Democratic challenger, Pat Montgomery of San Antonio, say they are not accepting contributions.

Judge Cathy Cochran, Republican candidate for Place 3, reported no contributions, living up to her pledge to finance her own campaign after being appointed to the CCA by Perry. [See "Herasimchuk Jumps Right in at CCA," Texas Lawyer, Oct. 8, 2001, page 1.] Her Democratic opponent, Fort Worth solo J.R. Molina, did not return a phone call seeking comment and did not have his campaign finance statement available by presstime.

Meanwhile, the candidates for Texas attorney general have far outpaced the judicial candidates in campaign fund raising.

Ethics Commission reports show Republican Greg Abbott, a former justice on the Texas Supreme Court, pulled in $2.3 million during the first half of the year, while Democrat Kirk Watson, former mayor of Austin, raised $1.1 million.

Political analysts say the attorney general's race tends to attract more interest in donors because it's considered to be a more partisan race than judicial elections.

Both campaigns have invested some of their money in television time. Abbott reported he purchased $1.35 million in TV time through Strategy Group for the Media in Austin. Watson purchased $1.9 million in TV time for political spots that will air this fall, says Margaret Justus, a spokeswoman for Watson's campaign.

Texans for Lawsuit Reform, a group backed by business and insurance interests, is one of Abbott's top contributors, giving $55,000 during the January-through-June reporting period. TLR spokesman Chuck McDonald says the Abbott-Watson race is critical for determining the proper role of the attorney general.

"Kirk Watson is a very efficient trial lawyer. I think that's what he sees his role as," McDonald says.

Justus says Watson has represented clients on both sides of the docket.

TLR represents interests such as Enron Corp., which is the subject of an investigation by the Texas Office of the Attorney General because of the millions lost by state funds in the wake of the corporation's collapse, she says.

The legal community also made hefty contributions to Abbott and Watson. Abbott's campaign calculates he received $117,240 from firms during the reporting period. Justus says Watson's campaign has not calculated the amount he received from firms.

The firm that gave the most to Abbott also covered its bases by contributing to Watson. Fulbright & Jaworski, headquartered in Houston, gave the Republican $26,000 in two separate contributions during the six-month period. Watson's report shows three contributions from the firm, which gave him a total of $6,500.

"Sometimes we give to competing candidates because we feel that both candidates would do a good job, and we want to support the electoral process," says Fulbright & Jaworski spokeswoman Leigh Ann Nicas.

Nicas says she doesn't know why the firm gave substantially more to Abbott than Watson. However, she adds, "We're still early in the [election] process."

Plaintiffs' attorney Richard Mithoff, partner in Mithoff & Jacks in Houston, is one of Watson's biggest contributor in the legal community, contributing $24,000, the Ethics Commission report shows.

Mithoff says Watson has been a friend a number of years and, as a lawyer who has tried cases, is well qualified to be attorney general.

"I think it's important who represents the state of Texas," Mithoff says.

Date Received: July 19, 2002