HomeMy WebLinkAboutAgenda Report - November 7, 2007 K-05AGENDA ITEM V--, 5
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDATITLE: Authorize Contingency Fee Payment to Folger, Levin & Kahn, LLP, for the
Hartford Litigation.
MEETING DATE: November 7, 2007 City Council Meeting
PREPARED BY: Citv Attornev's Office
RECOMMENDED ACTION: Authorize Contingency Fee Payment to Folger, Levin & Kahn,
LLP, for the Hartford Litigation.
BACKGROUND INFORMATION: The City Council approved a Contingency Fee Agreement with the
law firm of Folger Levin & Kahn on March 21, 2007, for the Hartford
litigation.
The Contingency Fee Agreement capped all monthly fees at $50,000 plus expert fees and costs starting
February 1, 2007. Folger, Levin & Kahn would also recover 25% of all recoveries from the City's
insurance carriers in excess of $4 million.
Attached is an invoice from Folger Levin & Kahn for contingency fees in the amount of $1,603,125.00.
Although several of the settlements call for extended payment terms, Folger Levin & Kahn requests
Council authorize payment of their full contingency up front. Their request is reasonable in light of the
facts that: 1) the contingency is roughly equal to what we would have been billed on a monthly basis;
and 2) Folger Levin & Kahn has already expended the hours on the recovery. Accordingly, I recommend
Council authorize immediate payment of the contingency amounts.
FISCAL IMPACT:
FUNDING AVAILABLE: Wate
Wk ffivans Approved:
dot Manager
abaue , Attom y
APPROVED
Blai , City Manager
ATTORNEYS AT LAW
FOLGER UvIN & KAHN LLP
Em6arcadero Center West
275 Battery Street, 23rd Floor
San Francisco. California 94111
e-mail accounting6flk.com
Federal I.D. 94-25OQ895
City of Lodi and Lodi Financing Corporation October 12, 2007
221 W, Pine Street
Lodi, CA 95240
Attn: Stephen Schwabauer
Matter No. 20068-8003 Invoice No.: 104596
25% Contingency fee per March 19, 2007
modification to fee agreement on amounts
received by the City in excess of
$4 million, not including the USF&G
or ACIC settlements.
Admiral settlement of $687,500
171,875.00
Lloyds settlement of $400,000
100,000.00
Westchester settlement of $400,000
100,000.00
Federal settlement of $225,000
56,250.00
AIG settlement of $2,500,000
625, 000.00
($1.6 million to be received November 1, 2007)
Transcontinental settlement of $2,200,000
550,000.00
($1,500,000to be received in January 2008
and $700,000 to be received in January 2009)
Total Attorneys' Fees:
$1,603,125.00
Subtotal:
$1,603,125.00
TOTAL BALANCE DUE:
$1,603,125.00