Inside the legal fees for the MTA/TWU dispute

The Post today reports that the MTA has already spent $1.2 million in legal fees to fight the binding arbitration decision that guaranteed TWU workers 11 percent raises over three years. Of course, everyone is outraged — OUTRAGED! Curtis Tate, acting TWU boss, called it “this ridiculous waste of public resources.” Gene Russianoff, slightly less hyperbolic, questioned the outside expenditures: “They spent a lot of dough, and I wonder why they can’t do more of that in-house.”

Of course, anyone with a little knowledge of the legal world would have an understanding of the situation. The MTA stands to lose hundreds of millions of dollars a year if the arbitration is upheld. Furthermore, outside law firms have the expertise and manpower to adequately combat a so-called binding arbitration decision. While the MTA’s in-house counsel can provide support, the lawyers at Littler Mendelson are much better suited for the task. The $1.2 million for a corporation the size of the MTA is but a drop in the legal bucket, and although the story makes for populist outrage, it’s a non-starter.