Resolution No. 75301
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RESOLUTION NO. 7530
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
CONTINGENCY FEE AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND THE LAW FIRMS OF MCDERMOTT, WILL & EMERY
AND LISTER, MARTIN, THOMPSON & SECIA FOR
REIMBURSEMENT OF CERTAIN WORKERS' COMPENSATION
BENEFITS
WHEREAS, the City of Torrance and other public entities have
filed a lawsuit against the State Compensation Insurance Fund for the
reimbursement of certain disability benefits and compensation paid
under the workers' compensation laws of the State of California to
employees or former employees who suffered injuries and/or occupational)
diseases; and
WHEREAS, the City of Vernon desires to join the lawsuit filed
by the City of Torrance and the other public entities in order to
recover any funds that should legally be reimbursed; and
WHEREAS, the law firms of McDermott, Will & Emery and Lister,
Martin, Thompson & Secia have agreed to represent the plaintiffs for a
contingency fee of twenty-five percent (25%) of what is recovered on
behalf of each individual plaintiff; and
WHEREAS, the City of Vernon believes that such a fee
arrangement is reasonable.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Contingency Fee Agreement, a copy of which has been
presented to the City Council concurrently with this resolution, and
the City Council hereby orders said Agreement to be received and
filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Agreement for,
and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Administrator to send a copy of this resolution and
one fully executed Agreement to:
Lister, Martin, Thompson & Secia
Attn: Helen M. Brennan
700 N. Brand Boulevard, Suite 630
Glendale, CA 91203-1287
SECTION -a: The City Clerk of the City of Vernon shall certify
to the passage of this resolution, and thereupon and thereafter the
same shall be in full force and effect.
APPROVED AND ADOPTED this 2nd day of May, 2000.
ATTEST:
(BRUCE V. MALKENHORST, City Clerk
EONIS C. MAI%URG, M yor
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1 STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 7530, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Tuesday, May 2, 2000,
8 and thereafter was duly signed by the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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SUPPORTING
DOCUMENTS
CONTINGENCY FEE AGREEMENT
THIS IS AN AGREEMENT between the ("Plaintiff") , -on the one hand, and the
law firms of McDermott, Will & Emery ("MW&E") and Lister, Martin, Thompson & Secia
("LMT&S") on the other hand. MW&E and LMT&S together may be hereinafter referred
to as "Legal Counsel." This agreement alone shall govern the parties' respective rights
and responsibilities concerning the matter under engagement.
1. Claims Covered by Agreement: Plaintiff hereby retains Legal Counsel to
represent it solely as a named plaintiff in an action for damages and other
appropriate relief brought by various public entities against the State
Compensation Insurance Fund ("SCIF"). Claims to be alleged in the action all
arise out of SCIF's failure to reimburse Plaintiff and other public entities, as
required by final Workers' Compensation Appeals Board awards, for certain
disability benefits and compensation paid under the workers' compensation laws
of California to employees or former employees who suffered injuries and/or
occupational diseases (the "Claim").
This Agreement does not cover any other claim or cause of action that may arise
whether related or unrelated and whether or not it runs against SCIF. If such
matters do arise, separate agreements for legal services will be required if
Plaintiff wishes Legal Counsel to handle them.
2. No Guarantee as to Result: Plaintiff acknowledges that legal counsel have made
no guarantee as to the outcome of the amounts recoverable in connection with
the Claim.
3. Contingency Fee to Attorney: Plaintiff acknowledges that it is aware that
contingency fee arrangements are not set by law and that the contingency fee
percentage is negotiable.
Plaintiff agrees to pay Legal Counsel an amount equal to twenty-five percent
(25%) of any recovery obtained on behalf of plaintiff after the action is filed,
whether by way of settlement, judgment or compromise. Plaintiff further agrees
that this amount is fair and reasonable.
If the recovery consists of payments to be made over a period of time, or in
property not entirely cash or cash -equivalent, the contingency fee shall be based
on the present cash value of the recovery as determined by generally recognized
accounting and appraisal standards. The contingency fee shall be paid out of the
first funds or property received. Monetary sanctions awarded to Legal Counsel
during the course of the litigation shall not be considered part of the recovery
obtained, on behalf of plaintiff.
4. Litigation Costs and Expenses: Legal Counsel are authorized to incur
reasonable costs and expenses in performing legal services under this
agreement. Costs and expenses incurred in connection with pursuing the Claim
shall be reimbursed to Plaintiff and/or Legal Counsel in whatever proportion
those costs and expenses were paid before the contingency fee is computed.
M
Contingency Fee
Page 2
Plaintiff shall not be responsible for any costs incurred if no recovery is obtained
for plaintiff.
5. Client's Receipt of Agreement and Knowledge of Terms Plaintiff acknowledges
that it has discussed this Agreement with its own independent counsel; that it has
read and fully understands all of the terms and conditions of this agreement
before signing it; and that it has received an executed copy of this Agreement.
6. Class Certification and/or Recovery of Attorney Fees In spite of the above, the
parties agree that if Legal Counsel is able to obtain recovery of attorney fees
then the Contingency Fee Agreement referred to above will be reduced by the
same amount of attorney fees recovered for work done on behalf of plaintiff. The
parties agree that this amount will be determined by dividing any attorney fees
recovered by the total number of plaintiffs in the law suit.
Executed on #�; , 2000 at , California.
CITY OF VERNON
Name of Plaintiff McDERMOTT, WILL & EMERY
2049 Century Park East, Suite 3400
CITY OF VERNON Los Angeles, CA 90067
Telephone (310) 277-4110
By�uliCis a
Name of�individu signing
ESL ONIS C. MALBURG,
Mayor
Title of individual signing
ATTEST:
BRUCE V. MALKENHORST
City Clerk
APPROVED AS TO FORM:
UARDO OLIVO
City Attorney
and
LISTER, MARTIN, THOMPSON & SECIA
700 North Brand Boulevard, Suite 630
Glendale, CA 91203
Telephone (818) 551-6444
By.fr'6�