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Resolution No. 09909 1 RESOLUTION NO. 9909 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND RATIFYING THE EXECUTION OF A 4 CONSENT AND WAIVER OF CONFLICT LETTER BY AND. BETWEEN THE CITY OF VERNON AND LATHAM & WATKINS LLP 5 6 WHEREAS, on February 11, 2009; the Department. of Toxic. ~ Substances Control issued an Imminent and Substantial Endangerment. g Determination-and Order and Remedial Action Order for the Victoria g Golf Course Site (the "Site") alleging that the City of Vernon (the 10 "City"), together with other respondents, are potential responsible 11 parties at the Site and further alleging that the City allegedly 12 arranged for the disposal of hazardous substances at the Site; acid 13 WHEREAS, the-law firm of Latham & Watkins LLP ("Latham") has 14 a multi-disciplinary practice capable of handling complex 15 transactions, litigation and regulatory matters, and in advising 16 clients on a wide array of legal issues; and 17 WHEREAS; Latham has been providing legal services to the City 1g in the past, and the City desires Latham to represent--the City in 19 actions relating to the Site. 20 WHEREAS, Latham submitted a letter dated March 25, 2009, 21 requesting that the City accept and consent to its joint 22 representation of Watson Land Company ("Watson") and the City 23 regarding the same Site as to their common interests in limiting their 24 respective liabilities and in minimizing site clean up costs; and 25 WHEREAS, in the event the City and Watson have adverse 26 interests to the extent that they have or may have contribution claims 27 against each other, Latham will not represent the-City; and 28 WHEREAS, in order to meet the urgent need for representation l regarding the Site, the City Attorney executed the March 25, 2009 2 letter, subject to ratification by the City Council; and 3 WHEREAS, the City Council of the City of Vernon desires to 4 approve and ra ify the .consent and waiver of conflict letter and the 5 actions taken by the City Attorney in executing the March 25, 2009 6 letter. 7 NOW, THEREFORE, BE IT RESOLVED BY THE. CITY. COUNCIL OF THE 8 CITY OF VERNON AS FOLLOWS: 9 SECTION 1: The City Council of the City of Vernon hereby 10 finds and determines that the recitals contained hereinabove are true 11 and correct. 12 SECTION 2: The City Council of the City of Vernon hereby -13 approves and ratifies the. City Attorney's execution of the consent and 14 waiver of conflict letter dated March 25,.2009-with Latham in 15 substantially the same form as the ,copy which is attached hereto as 16 Exhibit A and incorporated by reference. 17 SECTION 3: The City Clerk of the City of Vernon shall 18 certify to the passage of this resolution, and thereupon and 19 thereafter the same shall be in full force and effect. 20 APPROVED AND ADOPTED this 6th day of April, 2009. 21 2 2 ~ Name: hGOrilS C. Malburg 23 Title : Mayor / .~I~a 24 25 ATTEST: 26 27 M VELA GIRON, it Clerk. 28 - 2 - 1 STATE OF CALIFORNIA ) ss 2 COUNTY OF LOS ANGELES ) 3 4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby 5 certify that the foregoing Resolution, being Resolut-ion No. 9909, was 6 .duly adopted by the City Council of the City of Vernon at a regular 7 meeting of the City. Council-duly held on Monday, April 6,-2009, and g thereafter was duly.. signed by the Mayor or Mayor Pro-Tem of the City of g Vernon. 10 11 MANUEL IRO City Clerk 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 3 - ExxisiT a Michael`G. Romey 355 South Grand Avenue Direct Dial: (213) 891-7591 Los Angeles, California 90071-1560 michael.romey@Iw.com ~ Tel: +1.213.485.1234 Fax: +1.213.891.8763 www.lw.com L A T H A M& W AT K I N 5 LLP ~A~ ~ O FIRM/AFFILIATE OFFICES Abu Dhabi Munich ~~q^ry~~py}`I~`7 Q Barcelona New Jersey i II ff'11!!V }ir ~t~~. Brussels New York Chicago Northern Virginia Doha Orange County March 25, 2009 Dubai. Paris Frankfurt Rome Hamburg San Diego. Hong Kong San Francisco London Shanghai Jeff A. Harrison Los Angeles Silicon vauey .City Attorney Madrid singapore City of Vernon Milan Toky° Moscow Washington, D.C. 4305 Santa Fe Avenue Vernon, California 90058 Re: City of Vernon/Victoria Golf Course Clean-Up Site Dear Jeff: You have asked Latham to represent the City of Vernon ("the City") with respect to the Victoria Golf Course Clean-up site in Carson, California ("Site"). As you know, for some time we have represented the Watson Land Company ("Watson") with respect to this same Site. We would be pleased to undertake this new representation under the following conditions. ("Latham" refers to Latham & Watkins LLP and its affiliates.) The City and Watson have both received Imminent and Substantial Endangerment Orders from the California Department of Toxic Substances Control alleging that they are potential responsible parties at the Site. Watson is alleged to be a successor to a past-owner of the Site; the City of Vernon isalleged to have arranged for the disposal of hazardous substance at the Site. Watson and the City have common interests in limiting their respective liabilities and in minimizing site clean up costs. However, they may also have adverse interests to the extent that they have (or may have) contribution claims against each other. Accordingly, there are two related aspects of the consent we are asking for in this letter. First, we are asking your agreement that we will not represent the City with respect such contribution claims. Second, we are also asking your consent to our representation of Watson with respect to it and the City's common interests. Naturally, we are asking Watson for reciprocal consents. We believe we are able to undertake these separate and limited representations, with both clients' consent, because the subjects on which we are representing each can realistically be kept distinct from the subjects on which we will represent neither client. However, you should understand that it is possible that our views on this point may change as the case evolves. It is also possible that the court may decide that we may not continue to represent both of these clients, even though they have both consented. LA\1957733.1 -Jeff i-iarrl£On ' March 25, 2009 Page 2 LATHAM&WATKINS«P If it does. become impossible for us to continue to represent both clients, it is our intention that we would withdraw as counsel for the City and continue to represent Watson. As a condition of our agreement to' represent the City in this matter, we are asking it to consent to our. continued representation of Watson in this matter. It would become necessary for the City to hire new counsel, which would likely entail additional expense, delay, and some loss of familiarity with the matter. Unless you otherwise agree, anyone who has been on the team representing you in this matter would remain excluded from representing Watson in the matter. We and our clients rely on advance waivers of conflicts, and by signing this letter you hereby acknowledge that we and Watson will be relying on the waiver provided hereby. We will ensure that these respective teams operate separately, and that no confidential information from orie client is disclosed to the other client or the team representing it. Naturally, the two teams may at times work together, but they will operate substantially as if they were from different law firms representing these two clients in the matter. We believe that this arrangement adequately protects the confidences of both parties, because of the professionalism and dedication of our people. We take very seriously our obligations to maintain the confidentiality of information we receive from all of our clients, including the City and Watson. Accordingly, we will continue to maintain the confidences of both the City and Watson. In undertaking the engagement described in this letter, we will not be under a duty to disclose any such confidential information of Watson to the City. You agree that you will not consider it a breach of any duty that we owe to the City for us to honor confidentialities and to limit the disclosure of information in this manner. We will of course obtain a reciprocal agreement from Watson to protect your confidences. Please feel free to call me to discuss this matter. In addition, you should feel free to consult with independent counsel concerning any aspect of this letter. We and our clients rely on advance waivers of conflicts, and by signing this letter :you hereby acknowledge that we and Watson will be relying on the waiver provided hereby; If the foregoing is acceptable and LA\1957733.1 Jiff H,~rroson ` March 25, 2009 Page 3 LATHAM&WATKINS~~P consented to, I'd like you to please sign the enclosed copy of this letter on behalf of the City where indicated below and return it to me. Sincerely, Michael G. Romey of LATHAM & WATKINS LLP The foregoin is acceptable and consented to. Jeff i ,City Attorney On 1 he City of Vernon LA\1957733.1 . r - r , t~ r ~ yv~ , . ~,M ~~~FLY~~~,.. OFFICE OF THE CITY ATTORNEY Jeff A. Harrison, City Attorney 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 Fax (323) 826-1438 April. 1; 2009 VIA U.S. MAIL Michael G. Romey, Esq. Latham & Watkins, LLP .355 South Grand Avenue Los Angeles, CA 90071-1560 Re: City of Vernon/Victoria Golf Course Clean-Up Site Dear Michael: Enclosed please find an executed consent and waiver letter agreement regarding the above-reference matter If you have any questions, please contact. me. Very .truly yours,,. f A Harrison City Attorney JH:em Enclosure cc: Ms. Nelly Giron, City Clerk (w/ original agreement).. (Resolution No. 9909) E~cCusiveCy IndustriaC u, • N. , ' PFn.4l'~ ,P - ! ~ ` ;4 Cs~~F,'LY IM~J` I CITY ATTORNEY'S OFFICE- ~~R 0 1 2009 INTER-DEPARTMENT MEMORANDUM CITY CLERK'S pF~IC~ DATE: April 1, 2009 TO: Honorable-City Council FROM: Jeff A. Harrison, City Attorney . RE: Staff Report - Latham & Watkins Victoria Golf Course Clean- Up Site Representation Issue:. On February 11, 2009, the Department of Toxic Substances Control issued an Imminent and Substantial Endangerment Determination and Order and Remedial Action Order for the Victoria Golf Course Site (the "Site") alleging that the City of Vernon, together with other respondents, are potential responsible parties at the Site and further alleging that the City allegedly arranged for the disposal of hazardous substances at the Site. The City has requested the law firm of Latham & Watkins LLP ("Latham") to represent the City of Vernon in the action. By letter dated March 25, 2009, Latham has advised the City of its representation of Watson Land Company regarding the same Site. Latham is requesting that the City consent to Latham's continued representation of Watson with respect to it and the City's common. interests in limiting their respective liabilities and in minimizing site clean up costs; however, the City and Watson may also have adverse interests to the extent that they have or may .have contribution claims against each other. In that case., Latham will not represent the City. Recommendations: I recommend that the City engage the services of Latham with respect to the Site and adopt a resolution. ratifying my execution of the joint representation and waiver of conflict letter with Latham. Fiscal Impact Unknown at this time. cc: Eric Fresch Michael G. Romey 355 South Grand Avenue Direct Dial: (213)891-7591 Los Angeles, California 90071-1560 michael.romey@Iw.com D Tel: +1..213.485.1234 Fax: +1.213.891.8763 n www.lw.com L A T H A M& W AT K I N S LLP MAR 3 O ZOOS FIRM /AFFILIATE OFFICES Abu Dhabi Munich ATT~p1VEY .Barcelona New Jersey ~Rj Brussels New York .Chicago Northern Virginia Doha Orange County March 25, 2009 pubai Paris. Frankfurt Rome Hamburg San Diego Hong Kong San Francisco London Shanghai Jeff A. Harrison i.os Angeies Silicon Valley Clt}' Attorney Madrid Singapore Clt Of Vernon Milan Tokyo y Moscow Washington, D.C. 4305 Santa Fe Avenue Vernon, California 90058 Re: City of Vernon/Victoria Golf Course Clean-Up Site Dear Jeff: You have asked Latham to represent the City of Vernon ("the City") with respect to the Victoria Golf Course Clean-up site in Carson, California ("Site"). As you know, for some time we have represented the. Watson Land Company ("Watson") with respect to this same Site. We would be pleased to undertake this new representation under the following conditions. ("Latham" refers to Latham & Watkins LLP and its affiliates.) The City and Watson have both received Imminent -and Substantial Endangerment Orders from the California Department of Toxic Substances Control alleging that they are potential responsible parties at the Site. Watson is alleged to be a successor to a past owner of the Site; the City of Vernon is\alleged to have arranged-for the disposal of hazardous substance at the Site. Watson and the City have common interests in limiting their respective liabilities and in minimizing site cleanup costs. However, they may also have adverse interests to the extent that they have (or may have) contribution claims against each other, Accordingly, there are two related aspects of the- consent we are asking for in this letter. First, we are asking your agreement that we will not represent the City with respect such contribution claims.. Second, we are also asking your consent to our representation of Watson with respect to it and the City's common interests. Naturally, we are asking Watson for reciprocal consents. We believe we -are able to undertake these separate and limited representations, with both clients' consent, because the subjects on which we are representing each can realistically be kept distinct from the subjects on which we will represent neither client.. However, you should understand that it is possible that our views on`this point may change as the case evolves. It is also possible that the court may decide that we may not continue to represent both of these clients, even though they-have both consented. LA\1957733.1 Jeff Harrison March 25,2009 Page 2 LATHAM&WATKINS4LP If it does become impossible for us to continue to represent both clients, it is our intention that we would withdraw as counsel for the-City and continue to represent Watson. As a condition of our agreement to represent the City in this matter, we are asking it to consent to our continued representation of Watson in this matter. It would become necessary for the City to hire new counsel, which would likely entail additional expense, delay, and some loss of familiarity. with the matter. Unless you otherwise agree, anyone who has been on the team representing you in this matter would remain excluded from representing Watson in the matter. We and our clients rely on advance waivers of conflicts, and by signing this letter you hereby acknowledge that we and Watson will be relying on the waiver provided hereby. We will ensure that these respective teams operate separately, and that no confidential information from one client is disclosed to the other client or the team representing it. Naturally,. the two teams may at times work together, but they will operate substantially as if they were from different law firms representing these. two clients in the matter. We believe. that this arrangement adequately protects the confidences of both parties, because of the professionalism and dedication of our people, We take very seriously our obligations to maintain the confidentiality of information we receive from all of our clients, including the City and Watson. Accordingly, we will continue to maintain the confidences of both the City and Watson.. In undertaking the engagement described in -this letter, we will not be under a-duty to disclose any such confidential information of Watson to the City. You agree that you will not consider it a breach of any duty that we owe to the City for us to honor confidentialities and to limit the disclosure. of information in .this .manner. We will of course obtain a reciprocaLagreement from Watson to protect your confidences. Please feel free to call me to discuss this matter. In addition, you should feel free to ..consult with independent counsel concerning any aspect of this letter. We and our clients rely on advance. waivers of conflicts, and by signing this letter you hereby acknowledge that we and Watson will be relying on the waiver provided hereby. If the foregoing is acceptable and. I,A\1957733.1 Jeff Harrison March 25, 2009 Page 3 LATHAM~WATKINSL4P consented to, I'd like you to please sign the enclosed copy of this letter on behalf of the City where indicated below and return it to me. Sincerely, Michael. Cr. Romey of LATHAM & WATKINS LLP The foregoin is acceptable and consented to. .Teff i ,City Attorney On 1 he City of Vernon LA\1957733.1