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HomeMy WebLinkAboutENGAGEMENT LETTERS BETWEEN AUGUSTA, GA AND BARON & BUDD, P.C. ENGAGEMENT TO REPRESENT RE: Augusta, Georgia civil suit against those legally responsible for the wrongful distribution of prescription opiates and damages caused thereby. AUGUSTA, GEORGIA (hereinafter "CLIENT"), by and through its governing body, The Augusta, Georgia Commission, hereby retains the law firm BARON & BUDD, PC ("Firm") pursuant to the Georgia Rules of Professional Conduct, on a contingent fee basis, to pursue all civil remedies against those in the chain of distribution of prescription opiates responsible for the opioid epidemic which is plaguing AUGUSTA, GEORGIA including, but not limited to, filing a claim for public nuisance to abate, enjoin, recover and prevent the damages caused thereby. J. Burton LeBlanc of the law firm BARON & BUDD, PC shall serve as LEAD COUNSEL. CLIENT authorizes lead counsel to employ and/or associate additional counsel, with consent of CLIENT, to assist LEAD COUNSEL in the just prosecution of the case. CLIENT consents to the participation of the firms listed below (collectively referred to, herein, as "Attorneys"), if no conflicts exist, including but not limited to conflicts pursuant to the Georgia Ethics laws and the Georgia Rules of Professional Conduct: BARON&BUDD, PC 3102 Oak Lawn Avenue #1100 Dallas, Texas GREENE,KETCHUM,FARRELL,BAILEY&TWEEL, LLP 419 11th Street Huntington, West Virginia HILL PETERSON CARPER BEE&DEITZLER PLLC 500 Tracy Way Charleston, West Virginia LEVIN,PAPANTONIO,THOMAS,MITCHELL,RAFFERTY&PROCTOR, PA 316 South Baylen Street Pensacola, Florida MCHUGH FULLER LAW GROUP 97 Elias Whiddon Road Hattiesburg, Mississippi POWELL&MAJESTRO,PLLC 405 Capitol Street, P-1200 Charleston, West Virginia WILLIAM BOLING,PC 675 Drewry Street, Suite 6 Atlanta, Georgia Page 1 of 4 DILLON&VAUGHN,P.C. 20 West Main Street Forsyth, Georgia VAUGHN,WRIGHT AND BOYER,LLP 236 Vaughn Road Forsyth, Georgia ENOCH TARVER 3540 Wheeler Road, Suite 312 Augusta, Georgia In consideration, CLIENT agrees to pay thirty percent (30%) of the total recovery (gross) in favor of the CLIENT as an attorney fee whether the claim is resolved by compromise, settlement, or trial and verdict (and appeal). The gross recovery shall be calculated on the amount obtained before the deduction of costs and expenses. Total fees and expenses shall not exceed fifty percent (50%) of the gross recovery. CLIENT grants the Firm an interest in a fee based on the gross recovery. If a court awards attorneys' fees, the Firm shall receive the "greater of' the gross recovery-based contingent fee or the attorneys' fees awarded. There is no fee if there is no recovery. BARON&BUDD, PC and/or the other law firms, hereinafter referred to as the "Attorneys," shall advance all necessary litigation expenses necessary to prosecute these claims. All such litigation expenses, including the reasonable internal costs of electronically stored information (ESI) and electronic discovery generally or the direct costs incurred from any outside contractor for those services, will be deducted from any recovery after the contingent fee is calculated. There is no reimbursement of litigation expenses if there is no recovery. The CLIENT acknowledges this fee is reasonable given the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly, the likelihood this employment will preclude other employment by the Firm, the fee customarily charged in the locality for similar legal services, the anticipated (contingent) litigation expenses and the anticipated results obtained, the experience, reputation, and ability of the lawyer or lawyers performing the services and the fact that the fee is contingent upon a successful recovery. This litigation is intended to address a significant problem in the community. The litigation focuses on the wholesale distributors and manufacturers of opioids and their role in the diversion of millions of prescription opiates into the illicit market which has resulted in opioid addiction, abuse, morbidity and mortality. There is no easy solution and no precedent for such an action against this sector of the industry. Many of the facts of the case are locked behind closed doors. The billion-dollar industry denies liability. The litigation will be very expensive and the litigation expenses will be advanced by the Firm with reimbursement contingent upon a successful recovery. The outcome is uncertain, as is all civil litigation, with compensation contingent upon a successful recovery. Consequently, there must be a clear understanding between the CLIENT and the Firm regarding the definition of a"successful recovery." Page 2 of 4 The Firm intends to present a damage model designed to abate the public health and safety crisis. This damage model may take the form of money damages and/or equitable remedies (e.g., an abatement fund). The purpose of the lawsuit is to seek reimbursement of the costs incurred in the past fighting the opioid epidemic and/or recover the funds necessary to abate the health and safety crisis caused by the unlawful conduct of the wholesale distributors and manufacturers of opioids. The CLIENT agrees to compensate the Firm, contingent upon prevailing, by paying 30% of any settlement/resolution/judgment, in favor of the CLIENT, whether it takes the form of monetary damages or equitable relief. For instance, if the remedy is in the form of monetary damages, CLIENT agrees to pay 30% of the gross amount to Firm as compensation and then reimburse the reasonable litigation expenses. If the remedy is in the form of equitable relief (e.g., abatement fund), CLIENT agrees to pay 30% of the gross value of the equitable relief to the Firm as compensation and then reimburse the reasonable litigation expenses. To be clear, the Firm shall not be paid nor receive reimbursement from public funds unless required by law. However, any judgment arising from successful prosecution of the case, or any consideration arising from a settlement of the matter, whether monetary or equitable, shall not be considered public funds for purposes of calculating the contingent fee unless required by law. Under no circumstances shall the CLIENT be obligated to pay any attorneys fee or any litigation expenses except from moneys expended by defendant(s) pursuant to the resolution of the CLIENT'S claims. If the defendant(s) expend their own resources to abate the public health and safety crisis in exchange for a release of liability, then the Firm will be paid the designated contingent fee from the resources expended by the defendant(s). CLIENT acknowledges this is a necessary condition required by the Firm to dedicate their time and invest their resources on a contingent basis to this enormous project. If the defendant(s) negotiate a release of liability, then the Firm should be compensated based upon the consideration offered to induce the dismissal of the lawsuit. The division of fees, expenses and labor between the Attorneys will be decided by private agreement between the law firms and subject to approval by the CLIENT. Any division of fees will be governed by the Georgia Rules of Professional Conduct including: (1)the division of fees is in proportion to the services performed by each lawyer or each lawyer assumes joint responsibility for the representation of the CLIENT in writing; (2) the CLIENT is advised of the share that each lawyer is to receive and does not object to the participation of all the lawyers involved; and (3)the total fee is reasonable. LEAD COUNSEL shall appoint a contact person to keep the CLIENT reasonably informed about the status of the matter in a manner deemed appropriate by the CLIENT. The CLIENT at all times shall retain the authority to decide the disposition of the case and personally oversee and maintain absolute control of the litigation. Upon conclusion of this matter, LEAD COUNSEL shall provide the CLIENT with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination. The closing statement shall specify the manner in which the compensation was determined under the agreement, any costs and expenses deducted by the lawyer from the judgment or settlement involved, and, if applicable, the actual division of the lawyers' fees with a lawyer not in the same firm, as required in Rule 1.5 of the Georgia Rules of Professional Conduct. The closing statement shall be signed by the CLIENT and each attorney among whom the fee is being divided. Page 3 of 4 Nothing in this Agreement and nothing in the Attorneys' statement to the CLIENT may be construed as a promise or guarantee about the outcome of this matter. The Attorneys make no such promises or guarantees. Attorneys' comments about the outcome of this matter are expressions of opinion only and the Attorneys make no guarantee as to the outcome of any litigation, settlement or trial proceedings. SIGNED, this 14 day s 4,41,11A14//, 2018. AUGUSTA, GEORGIA -11 By. ; A AX4i1 Mayor H t ay s k A 1,4 viest, �s / ¢ !'D Attest: ena f Botinj f , 4 {r ... .,.mac. y t (SEAL), fi Accepted: BARON&BUDD, PC 3102 Oak Lawn Avenue #1100 Dallas, Texas By p)0(+GI,, (2,66,4c l ' C J. Burton LeBlanc Coy Date Lead Counsel Page 4 of 4