Arizona Republic
July 26, 2003
Max Jarman and Robbie Sherwood

A federal judge Friday rejected Arizona Corporation Commissioner Jim Irvin's bid to reduce a $60 million jury award levied against him in December.

The judge's action backs the jury's decision to hand down one of the largest awards ever against an individual in the state. Irvin's attorneys had argued that the jury was bound to fine Irvin no more than 10 times the actual damages in the case of $400,000, or $4 million.

U.S. District Judge Roslyn O. Silver declined to elaborate on her decision and said only that a written opinion would follow next week. Irvin, whose activities are the subject of an impeachment investigation in the Arizona House of Representatives, did not return calls for comment.

The state has paid out approximately $5 million in court costs and judgments associated with the case, but has refused to continue to defend him. As a result, Irvin has hired a team of lawyers at his own expense.

Who will pay the $60 million is a "subject that will be debated for a long time," said attorney Michael Sillyman, who represented Irvin in the case. The state insists it is not responsible for the punitive damages, but Irvin's lawyers will try to prove otherwise.

Friday's decision stems from a lawsuit filed by Southern Union Co. against Irvin in 1999. It alleged he improperly used his office to influence a $2 billion bidding war for Southwest Gas Corp. The Corporation Commission would have needed to approve that merger.

Houston-based Southern Union lost out in the deal to Oneok Inc. of Tulsa. Although it was never proved that Irvin stood to gain financially from the deal, his designated agent, Jack Rose, stood to make millions.

During the trial, the jury was influenced by allegations that Irvin attempted to fabricate evidence. The panel said the award, one of the largest ever against an individual, would have been less if they could have stipulated that he resign. His lawyers argued that the amount was excessive and arbitrary and asked the judge to reduce it or set it aside.

After the judge made her decision, New York Attorney Eric Herschmann, who represented plaintiff Southern Union, said it "confirms once and for all the wrongdoing by Irvin."

In the meantime, House Speaker Jake Flake said his impeachment investigation of Irvin would have proceeded no matter what the judge ruled. But he was surprised at the decision.

"I'm flabbergasted they didn't reduce it one penny, to at least something he could afford to pay," said Flake, R-Snowflake. "But that just means the judge was taking it seriously, and we're taking it seriously, too."

Attorney Melvin McDonald, hired by the House to investigate Irvin for possible impeachment, said the judge's decision becomes part of the case he is building.

"It's just another fact that goes into the puzzle, and we're looking at all the facts," McDonald said.