Ouch.
Unsuccessful 2006 Democratic gubernatorial candidate Chris Bell, once awarded $2 million in his lawsuit against the Republican Governors Association, has instead been ordered to pay the organization $300,000 in legal fees after losing on appeal.
The case dates to the closing days of the 2006 campaign, when the national association wrote two $500,000 checks to the campaign of Gov. Rick Perry, Bell’s Republican opponent.
After losing to Perry by 9 percentage points, Bell filed suit, arguing that the association violated state law by making political donations without appointing a Texas campaign treasurer or supplying a complete donor list. In 2010, Travis County District Judge John Dietz agreed, awarding Bell $2 million, or double the amount of the disputed contribution, as allowed by state law.
Last year, however, the 3rd Court of Appeals overturned Dietz’s ruling, saying out-of-state organizations cannot be penalized for disclosure violations and are not required to designate a state treasurer. Bell appealed, but the Texas Supreme Court declined to accept the case, leaving the appeals court ruling intact.
The appeals court also returned the case to Dietz to determine how much money — if any — Bell owed the association for attorney fees.
Last week, Dietz signed a judgment ordering Bell to pay $300,000 — with an additional $30,000 due if Bell appeals to the 3rd Court of Appeals, plus another $10,000 if he turns to the Texas Supreme Court.
See here, here, and here for the background. Bell is considering an appeal and has until next month to ask for a retrial on the legal fees issue. Judge Dietz is retiring at the end of the year, though, so a new trial would be in front of a new judge. Can’t say I envy him having this hang over his expected Mayoral campaign for next year. Hope he has better luck if there is a next time.