Campaign corruption: Edwards attacks Blackwater as his trial lawyer former partner sues

Former Senator John Edwards, the trial lawyer now running for president, has made campaign statements attacking Blackwater - but has not revealed to the public that his friend and former law partner stands to make millions of dollars in pending litigation against the diplomatic security provider.

In an October 30 news release from his presidential campaign, Edwards called for a congressional investigation of State Department immunity for Blackwater contractors, and for a redoubling of Justice Department probes.

Edwards failed to disclose that one of the trial lawyers suing Blackwater, David Kirby, is his former partner. Kirby is the North Carolina end of the lawsuit brought forth by California trial lawyer Daniel Callahan. Callahan requested that Rep. Nancy Pelosi, now speaker, and Rep. Henry Waxman "initiate" hearings on Blackwater. Waxman complied, calling Callahan's clients as witnesses and has recycled the trial lawyer's legal briefs as congressional "investigative" documents.

Could Edwards be jumping on the anti-Blackwater issue to help his trial lawyer friend make money?

Waxman 'investigation' tracks trial lawyer allegations

Blackwater's report to a House panel on the killings of four of its men in Fallujah in 2004 says that the congressional committee's "investigation" is politically motivated and that it tracks with a lawsuit filed by a trial lawyer who stands to make millions of dollars from suing the company.

Congressman Henry Waxman (D-CA, pictured) has led the hearings in response to a request from trial lawyer Daniel Callahan.

Bloomberg reports, "Blackwater officials, in their response yesterday to Waxman's accusations about the Fallujah incident, said there were 'striking similarities' between Waxman's report and a lawsuit filed against the company on behalf of the families of the four victims.

"The complaint and the Waxman report, for example, both accuse Blackwater of not using armored vehicles as a way to save costs. Waxman's report 'intentionally or not, tracks the litigation position,' Blackwater said.

"The report also noted a Dec. 13, 2006, letter to House Speaker Nancy Pelosi in which an attorney for the families urged Congress to investigate allegations of cost cutting by 'extremely Republican companies' such as Blackwater."

Forging ahead for the trial lawyers

Congressman Henry Waxman, the California Democrat who chairs the House Committee on Oversight and Government Reform, is pressing ahead with more political favors requested by trial lawyers.

The Federal Times has the story.

In December 2006, a major California trial lawyer, Daniel Callahan, requested incoming House Speaker Nancy Pelosi (D-CA) and Waxman to hold hearings on Blackwater whose scope and content coincided with his lawsuit against the company.

Waxman (pictured) complied, holding a hearing featuring Callahan's plaintiff clients in February, and an October 2 hearing with the defendant in Callahan's case, Blackwater CEO Erik Prince, as the main witness.

Waxman is now demanding more information from Blackwater, including data on Blackwater's profit margin from its government contracts. As a private company, Blackwater is not liable to divulge such information. Prince told lawmakers at the hearing that they were asking him to reveal trade secrets that would damage his business.

How trial lawyers drive the anti-Blackwater train

One of the deans of Washington's journalistic community describes how trial lawyers are driving the anti-Blackwater movement.

In his October 8 Washington Post piece, syndicated columnist Robert Novak tells how an ambulance-chasing attorney crafted Congressman Henry Waxman's hearings against Blackwater. Novak cites the December, 2006 letter from a California trial lawyer requesting that incoming House Speaker Nancy Pelosi (D-CA) and Waxman (D-CA) probe Blackwater.

BlackwaterFacts.com posted the letter on October 3.

Among other things, Novak reveals that the same day Waxman demanded that Blackwater CEO Erik Prince appear before his committee, the trial lawyer, Daniel Callahan, called Blackwater counsel Joseph Schmitz. And here's where the case reeks of what reasonable people might call extortion: The trial lawyer told Schmitz that he could "bury" the bad publicity if Blackwater would fork over $20 million in cash.

Callahan is suing in North Carolina, along with local trial lawyer David Kirby, a former partner of ex-Senator John Edwards (pictured).

"While the trial lawyers wanted money, Democrats wanted more bad publicity for Blackwater -- and the Bush administration," says Novak. "Questioning by Democrats seemingly came straight from Callahan's legal briefs."

Is Waxman abusing power to aid trial lawyers?

Not even Jack Abramoff could top this one - getting a senior congressman to abuse his committee chairmanship by holding hearings to benefit a trial lawyer.

But that's what a California trial lawyer apparently got Rep. Henry Waxman to do in his jihad against Blackwater USA.

Waxman is holding another show trial of Blackwater on October 2.

The sleazy-looking arrangement came to light earlier this year when Waxman (D-Calif.) held an "investigative" hearing on Blackwater, and called in witnesses who happened to be plaintiffs in a case against the company.

Waxman chairs the House Committee on Government Reform and Oversight, a post that grants him sweeping investigative powers.

The Overlawyered blog reported last February, "Nice tactic, if you can get away with it: after filing suit, get a House committee to conduct a hostile investigation of your opponent with your clients appearing as friendly witnesses. That's what appears to have happened in the House Oversight and Government Reform Committee's hearings last week on alleged shortcomings in the work of Iraq contractor Blackwater USA. The friendly witnesses in this case, called by committee chairman Rep. Henry Waxman (D-Calif.), were family members of several Blackwater consultants killed in Iraq, who are suing the company for damages. According to Rep. Darrell Issa (R-Calif.), the hearing followed upon the sending of a letter to House Speaker Nancy Pelosi by Orange County, Calif., plaintiffs’ lawyer Daniel Callahan of Callahan & Blaine, who's representing the families. The letter urged a "fruitful and meaningful" investigation of "these extremely Republican companies, such as Blackwater, who have been uncooperative to date."