In August 1994 Starr was appointed by a three-judge panel to continue the
Whitewater investigation, replacing
Robert B. Fiske, who had been appointed by the Attorney General prior to the reenactment of the
Independent Counsel law. The law conferred broad investigative powers on Starr and the other independent counsels named to investigate the administration, including the right to
subpoena nearly anyone who might have relevant information. Starr would later receive authority to conduct additional investigations, including the firing of White House
Travel Office personnel, potential political abuse of confidential
FBI files, ,
Madison Guaranty, Rose Law Firm, Paula Jones law
suit and, most notoriously, possible
perjury and obstruction of justice to cover up President Clinton's sexual relationship with
Monica Lewinsky.
The Special Division, the three-judge panel that named Starr, was led by Judge
David Sentelle, an appointee of President Reagan and a protege of Senator
Jesse Helms. On July 14, 1994, Helms, fellow Republican senator
Lauch Faircloth, and Sentelle met for lunch in the Senate cafeteria. All three initially denied having discussed the upcoming independent counsel appointment, though later Sentelle admitted that it "may" have come up in conversation. Sentelle also acknowledged that he was looking for a Republican "who had been active on the other side of the political fence" to head the new investigation, in keeping with the tradition of such independent counsels as
Archibald Cox and
Leon Jaworski (then known as special prosecutors). One of the other judges on the panel was a Democratic appointee to the bench; he registered no dissent over Starr's appointment.
On August 5, Starr was named independent counsel. The Special Division's written statement emphasized that the judges found no fault with the investigation up to that point by
Robert Fiske, a moderate Republican appointed by Attorney General
Janet Reno, but the newly reenacted law, signed by President Clinton, said that Independent Counsels must be chosen by the three-judge panel and not by the administration under investigation. Although Starr and other independent counsels were later criticized as unaccountable and unstoppable, the statute gave the Attorney General and the Special Division the authority to remove an independent counsel, and the Special Division used it in at least one instance.
Starr took the job part-time and remained active with his law firm,
Kirkland & Ellis. This too had been the norm with previous independent counsels, and the statute expressly permitted it. As time went on, however, Starr was increasingly criticized for alleged conflicts of interest stemming from the connection. Kirkland, like other major law firms, represents clients in litigation with the government, including tobacco companies and auto manufacturers. The firm itself at the time was being sued by the
Resolution Trust Company, a government agency tangentially involved in the Whitewater matter, and Starr had on one occasion talked with lawyers for
Paula Jones, who was suing President Clinton over an alleged sexual assault. Starr told the lawyers why he believed that presidents are not immune to civil suit. When this constitutional issue ultimately reached the
Supreme Court, the justices unanimously agreed.