HomeMy WebLinkAboutResolutions - 2007.07.19 - 28426MISCELLANEOUS RESOLUTION #07 160 July 19, 2007
BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON
IN RE: CLAIMS REVIEW COMMITTEE — RECOMMENDATION FOR INCREASE IN FEES
PAID TO OUTSIDE COUNSEL
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS on June 14, 2007, the Claims Review Committee reviewed a request from
the two law firms that assist the Department of Corporation Counsel to manage certain litigated
general liability cases involving Oakland County; and
WHEREAS the two law firms, Law Offices of Potter, DeAgostino, O'Dea and Patterson,
and Vandeveer Garzia, requested a $20.00 per hour — from $120.00 to $140.00 per hour --
increase in the fee paid to outside counsel; and
WHEREAS the hourly fee for outside counsel has not changed in more than four years;
and
WHEREAS the two law firms through their principal attorneys, Steven Potter and John
Lynch, respectively, have longstanding relationships with the County and the Department of
Corporation Counsel and have repeatedly demonstrated their expertise in expeditiously
managing the litigation assigned to them; and
WHEREAS only the principal attorneys named above handle the County's trial work; and
V WHEREAS the requested hourly rate is reasonable and generally less than that paid by
other municipalities for similar legal services, as detailed on the attached Memorandum from
Corporation Counsel; and
WHEREAS funding is available in the Building and Liability Fund to cover the expense
for these services.
NOW THEREFORE BE IT RESOLVED that, upon the unanimous recommendation of
the Oakland County Claims Review Committee, the Finance Committee hereby concurs that an
hourly rate increase to $140.00 per hour for outside counsel handling general liability claims and
litigation involving Oakland County is reasonable, appropriate, and consistent with rates paid by
other municipalities.
BE IT FURTHER RESOLVED that the Board of Commissioners hereby establishes said
rate effective August 1, 2007, and that the funding for the increase to $140.00 per hour is
available in the Building and Liability Fund.
Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing
resolution.
FINANE COMMITTEE
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FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Potter, Middleton and Coulter absent.
OAKLAND
L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
COUNTY MICHIGAN Judith K. Cunningham, Director 858-0553
DEPARTMENT OF CORPORATION COUNSEL
MEMORANDUM
TO: CLAIMS REVIEW COMMITTEE
FROM: JUDITH K. CUNNINGHAM, Corporation Counsel
DATE: July 11, 2007
RE: Fees Paid to Outside Counsel
The Department of Corporation Counsel requests that the Claims Review Committee
consider an increase in the hourly fee paid to outside counsel. We would recommend an
increase to $140.00 per hour. Although we are mindful of the financial constraints currently
impacting the County's budget, we offer the following rationale for this recommendation:
• Fees paid to outside counsel are currently $120.00 per hour; this rate has not been
changed in more than 4 years (in 2003 the rate was $105.00 per hour).
• The hourly rate for Malcolm Brown (who handles legal matters referred by the
Personnel Department; e.g., labor relations issues) is $160.00 - $165.00 per hour.
The two existing contracts with Malcolm Brown run through December 31, 2007 and
April 30, 2008.
• Only two outside firms are currently used by the County: Steve Potter and
Vandeveer Garzia. Both of these firms have a long-standing relationship with the
County, and both firms have produced outstanding results in the litigation assigned
to them. Furthermore, only the principal attorneys handle the County's trial work.
• The Department of Corporation Counsel is currently managing about 95% of the
County's litigation in-house; as a result fewer cases are sent to outside counsel. The
cases that are sent tend to be ones involving highly sensitive issues and/or cases
that require the resources of a large law office. It follows then that with fewer cases
being referred out, there will be less billings in numbers, albeit a slight increase in the
hourly rate.
• A survey of surrounding counties reveals the following:
1. Macomb County generally pays $125.00 per hour; exceptions occur when an
assigned attorney requests a higher fee at the time of a particular assignment
(done in closed session).
West Wing Extension Bldg. 14 East 3 1200 North Telegraph Road 3 Pontiac, Michigan 48341-0419 4 (248) 858-0550 3 Fax (248) 858-1003
(Memo to Claims Review Committee)
May 8, 2007
Page 2
2. Wayne County generally pays $185.00 - $220.00 per hour; paralegals are paid
$75.00 per hour.
3. The City of Detroit advises that its general rate is a range of $125.00 to $160.00
per hour; however, depending on the complexity of the case and if an outside
firm's senior partner is handling it, the rates can increase to $215.00 to $260.00
per hour.
4. Kent County generally pays $150.00 - $265.00 per hour.
5. Washtenaw County generally pays $145.00 - $165.00 per hour depending on the
nature of the legal work.
6. The Michigan Municipal Risk Management Authority pays generally $125.00 per
hour to outside counsel to handle litigation for numerous municipalities.
JKC/bgb
\Brad\Cunningham\Outside Fees\Claims Review Memo 2-outside counsel fees REVISED.doc
West Wing Extension Bldg. 14 East ! 1200 North Telegrph Road ! Pontiac, Michigan 48341-0419 ! (248) 858-0550 ! Fax (248) 858-1003
Resolution #07160 July 19, 2007
Moved by Potts supported by Zack the resolutions (with fiscal notes attached) on the amended Consent
Agenda, be adopted (with accompanying reports being accepted).
AYES: Burns, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel, Hatchett,
Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Suarez,-Zack,
Bullard. (22)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda, were adopted (with accompanying reports being accepted).
I HEREBY AFPROVE/yIE FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on July 19, 2007, with
the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac,
Michigan this 19th day of July, 2007.
Ru-tfAgglian, County Clerk