From Seattle writer and consultant Matt Rosenberg...

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Democrat Proxy & Bullitt Heir Sues Safeco Over McGavick Exit Pay

August 02, 2006

What matters most in the 06' contest between Repubican challenger Mike McGavick and Dem incumbent Maria Cantwell of Washington for U.S. Senate are issues and character. Issues such as as national security, social security, energy, immigration and federal spending. The character and integrity of the candidates, their campaigns and their supporters also matter. Now, a blood relative of some old-money Seattleites cum Cantwell and Democratic Party campaign contributors is the political proxy in a nasty bit of legal sniping underscoring McGavick's call for a new era of civility in national politics. Neil Modie of the Seattle Post-Intelligencer has more on the lawsuit that former waitress, University of Washington student and Safeco shareholder Emma Schwartzman filed against the company yesterday over McGavick's exit pay package.

Modie has done an exemplary job of connecting the dots, (In fact, as of 10:30 PST, 8/2/06, he has completely skunked the Seattle Times' Alex Fryer, whose take will doubtless be updated soon). So here goes, via the P-I's Modie, with some links I've woven in for additional background.

The plaintiff, Emma Schwartzman, 27, is a waitress, University of Washington student and a member of the Bullitt family, a wealthy business and political dynasty that gives generously to liberal crusades and candidates. She owns what was said to be "40 to 50" Safeco shares, which would have a total value of between $2,126 and $2,658.

Her great-great-grandfather, C.D. Stimson, co-founded General Insurance Co., which later became Safeco. Her grandfather is Stimson Bullitt, a prominent Seattle lawyer and businessman. One of Schwartzman's attorneys is Steve Berman, a nationally renowned litigator of securities, antitrust and shareholder lawsuits whose name strikes fear in corporate boardrooms.

Knoll Lowney, another of Schwartzman's lawyers and a prominent backer of local liberal causes, denied the suit was politically motivated. But it was the second time McGavick's Safeco compensation has emerged as a potential campaign issue. The state Democratic Party filed a complaint with the Federal Election Commission in April, alleging that the compensation package, coming after McGavick became a candidate, constituted an illegal corporate campaign contribution from Safeco.

....Lowney said Schwartzman and her mother, Ashley Bullitt of Port Townsend, contacted him about bringing the lawsuit. Although Schwartzman's prominent relatives have been big donors to Democratic and liberal causes, Lowney said she isn't politically active.

According to Federal Election Commission records, Stimson Bullitt has donated $1,500 to the Cantwell campaign this year, and his sister, Harriet Bullitt, of Leavenworth, has given Cantwell $4,000 since 2001 as well as $25,000 last year to Washington Senate 2006, a Democratic fund-raising committee.

.....Ashley Bullitt couldn't be reached for comment. But on his liberal Seattle political blog, David Goldstein wrote: "Are you a Safeco shareholder? Are you (upset) by the $17 million golden parachute Safeco gave Mike McGavick after he announced his resignation? If you're both, send me an e-mail." Goldstein didn't return phone calls Tuesday.

Laughably, Schwartzman's attorneys claim the suit is "non-political and non-partisan." Additional evidence of the Democratic party involvement is that Schwartzman's attorney Berman has donated $37,000 to national Democratic candidates and committees in the last four years. Schwartzman's attorney Lowney is a law partner of Richard Smith. Smith is not only another campaign contributor to liberal causes and candidates in Washington state. As my Sound Politics colleague and site founder Stefan Sharkansky has reported, Smith also recently was the second stalking horse candidate to add his very common surname to the ballot in a state supreme court contest that pits strong conservative challenger Stephen Johnson against threatened liberal incumbent Susan Owens.

The Democratic-inspired lawsuit against McGavick was filed a day after former President Bill Clinton headlined a pricey fundraising event for Cantwell in Puget Sound and told a Seattle audience at a fundraiser for U.S. Rep Jim McDermott (D-7th) that Republicans "favor attack over argument," are "tribal," and "need a divided America to win."

Thanks for putting it all in perspective, Mr. President.

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Comments:

This lawsuit should play very well for McGivik as it's another nail in the coffin of Cantwell. She doesn't have an issue except slime and this lawsuit only serves to reinforce that perspective. Layer on the public's contempt for the King County behavior during the governor's election recount fruad and you have to wonder about the political skills of Cantwell.

Posted by: Gary B at August 3, 2006 07:06 AM

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