The King of Torts

Clay reads that his former client Tequila Watson has pleaded guilty to murder. He then sees news of a development project tied to Bennett Van Horn and donates $100,000 to a trust to fund litigation against it. Patton French invites Clay to New York, traveling on French’s private jet. During the flight, French praises Clay’s Dyloft case and proposes a partnership.

French suggests moving the Dyloft class action to a favorable court in Mississippi, combining their cases, and controlling the litigation. He offers to pay all medical testing costs so that Clay can double his ad budget. After they land, Clay calls Pace for advice.

Pace tells Clay to take French’s deal, revealing that a damaging medical report on Dyloft will soon appear in The New York Times. That night, Clay and French formalize their partnership. During dinner, French learns that a major competitor, Texas lawyer Vic Brennan, has entered the race for Dyloft clients. Clay alerts French to the impending Times story.

The next morning, the article confirms the risks associated with Dyloft. Ackerman’s stock sinks, and Clay keeps his profitable short sale secret. French files a new class action in Biloxi, Mississippi. Clay returns to his DC office, doubles the ad budget, and hires more staff. His team warns him against gambling with the firm’s future.

In mid-August, the Federal Drug Administration orders Dyloft off the market, and the Biloxi class action secures certification. French forms a Plaintiffs’ Steering Committee, installing himself as chair and Clay as a member.

French calls a summit at his Idaho ranch. Clay charters a private jet and is envious of the other committee members’ larger planes. He meets the rest of the committee, including his rival, Vic Brennan. They tally their cases and determine that Clay holds the highest number of clients among them.

After a contentious dinner, analysts present Ackerman Labs’ finances and outline a settlement structure. The group agrees on a unified plan to consolidate cases and push for a settlement conference within 60 days.

Back in DC, Paulette and Jonah confront Clay, warning that the firm could collapse unless he hires at least 10 new lawyers and a full-time doctor to organize the medical findings for their case. Clay approves a large hiring spree. He then meets Pace, who advises him to cover his short on Ackerman and buy as many shares as possible, predicting a takeover.

Clay hires Oscar Mulrooney, a laid-off Yale Law graduate, to lead a new team of associates. Clay covers his short for a $1.9-million profit and invests it all in Ackerman stock. Soon after, Philo Products announces its acquisition of Ackerman at a price that delivers Clay a major gain. The deal leads Clay to suspect that Philo is Pace’s client and the manufacturer of Tarvan.

By mid-November, the firm’s monthly overhead hits half a million dollars, alarming Crittle. In New York, the Plaintiffs’ Steering Committee meets Ackerman’s legal team. During a break, a steering committee member tips Clay off to a potential mass-tort case involving defective construction mortar in Reedsburg, Pennsylvania.

Ackerman agrees to settle, sorting plaintiffs into three groups according to the severity of damages. Clay learns that his gross fees from the first group of plaintiffs alone amount to $106 million. Shocked, he calls Paulette, Jonah, and Rodney to tell them that they will receive bonuses of $10 million each. He then calls Rebecca, who confirms her wedding plans. She also confirms that Clay isn’t invited and rejects his plea to wait for him.

The Wall Street Journal breaks the settlement story and labels Clay the “King of Torts” in a major profile. Clay places Mulrooney in charge of the office and flies to the Bahamas. After Clay recounts his success, he buys Jarrett a $2.9-million catamaran and asks him to reenter practice as his partner. Jarrett refuses and warns him to handle his fortune carefully.

The firm sends settlement letters to clients. Ted Worley learns that his $62,000 settlement will net only $43,240 after fees and reacts with anger. When he calls to complain, Mulrooney points to the pre-authorization clause in their contract, which enables Clay’s firm to settle for any amount above a low threshold. The settlement is non-negotiable.

In December, Capitol Magazine features Clay on its cover as one of DC’s most eligible bachelors, overshadowing the issue’s announcement of Rebecca’s wedding. Clay crashes Rebecca’s wedding reception with a Russian model named Ridley. Their arrival draws wide attention from the guests.

Ridley detects Clay’s feelings for Rebecca, which Clay quickly denies. Clay and Rebecca share a tense dance during which Clay brags about his new lifestyle. Rebecca and her mother force him and Ridley to leave, and Clay considers the ejection a personal victory.

With mounting client complaints and a disengaged, overworked core staff, Clay yearns for escape. He gives day-to-day control to Mulrooney, who begins pursuing new litigation aimed at Skinny Ben, a diet pill that has been under public scrutiny for several years.

Clay takes Ridley to Mustique for a lavish holiday. Two days after Christmas, Pace visits unannounced and presents a new mass tort: Maxatil, a female hormone drug made by Goffman. Pace says that a forthcoming government study will link Maxatil to cancer and heart attacks. He proposes a partnership, demanding 25% of the gross fees and a $1-million advance. Clay agrees. Pace tells him to file the first class action alone and to keep French out of it.