HomeMy WebLinkAboutKING & SPAULDING LLPA-2020-190
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May 27, 2020
City Attorney's Office for Santa Ana
20 Civic Center (M-29)
P.O. Box 1988
Santa Ana, CA 92702
Re: Agreement for Legal Services
Dear City Attorney's Office for Santa Ana:
King & Spalding LLP
633 West Fifth Street
Suite 1600
Los Angeles, CA 90071
Tel: +1 213 443 4355
Fax: +1 213 443 4310
w Aslawxom
Quyen Ta
Partner
Direct Dial: +1 408-712-8778
qta@kslaw.com
We are pleased that you have asked King & Spalding LLP (the "firm," "us," or "we") to
serve as your counsel. This letter will confirm our discussions about this engagement and the basis
on which the firm will provide its legal services. If you have questions about these provisions or
would like to discuss possible modifications, please call me. If you agree, please return a
countersigned copy of this letter.
1. Client and Scope of Representation. The firm's client in this matter will be the City
of Santa Ana ("you"). The firm will be engaged to represent you in City of Santa Ana v. County
of Orange, et al. The firm will prepare and file necessary litigation documents in connection with
the case and will pursue the case to its conclusion by judgment, order, or settlement, but not appeal
unless we are specifically or separately retained for that work. You may limit or expand the scope
of our representation, but the firm must agree to any substantial expansion in advance.
2. Term of Engagement. This engagement shall commence on the date of execution
by all required signatories and continue for a three-year period, unless terminated earlier pursuant
to the provisions set forth immediately below. The term of this engagement may be extended for
up to two years upon a writing executed by the City Manager and the City Attorney. You or we
may terminate this engagement at any time for any reason by written notice, subject on the firm's
part to applicable rules of professional conduct. If the firm terminates the engagement, it will take
such steps as are reasonably practicable to protect the interests of the client. If termination requires
permission of a court or other tribunal, we will apply for permission and you agree promptly to
retain successor counsel if you wish to do so and not to oppose our application to withdraw.
Unless previously terminated, the firm's engagement for this matter will terminate when
we send you the final invoice for services in this matter. Following termination, nonpublic
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information you have supplied that we have retained will be kept confidential in accordance with
applicable rules of professional conduct. We will promptly return your papers and property at your
request upon payment of outstanding fees and costs and will retain our own files, including lawyer
work product and we retain all intellectual property in our work. We will transfer all retained
documents to the personnel responsible for administering the firm's records retention program.
You agree that we may securely dispose of or destroy any files you have not requested to be
returned to you a reasonable time after termination of this matter in accordance with our document
management policy, which currently calls for retention of materials pertaining to a matter for at
least ten years after the matter ends.
You are engaging our turn to provide legal services in connection with a specific matter.
After completion of the matter, changes may occur in applicable laws or regulations that could
affect your rights and liabilities. You agree that, unless you actually engage us after the matter's
completion to provide additional advice on issues arising from the matter, we will have no
continuing obligation to advise as to future developments.
3. Fees and Expenses. The firm's fees are based primarily on the hourly billing rate
for each attorney and legal assistant devoting time to a matter. The firm's hourly billing rates for
attorneys working on this matter will be $640. Time for paralegals and legal assistants will be
billed at agreed upon rates that will be substantially lower than attorney rates. The firm will not
charge for partner Quyen Ta's travel time for this matter. Other factors may be taken into
consideration in determining the firm's fees in accordance with applicable rules of professional
conduct. The firm and you have agreed that the total sum to be expended by you for the first phase
of work under the scope of this agreement shall not exceed $350,000. You acknowledge that you
were provided with 100 hours of initial time on this matter at no charge when firm partners Quyen
Ta, Arwen Johnson, and Craig Bessenger were at their prior law firm. You also acknowledge that
estimates and budgets are uncertain and not guarantees, and that this amount is not intended to
serve as a cap on fees due to the firm for its services within the scope of this agreement. The firm
will seek prior approval from you before undertaking work that would cause us to exceed
$350,000. If the firm recovers attorneys' fees for its services in this matter, those fees will be
donated to the City of Santa Ana. The firm's invoices will include separate charges for expenses
incurred in performing its services, such as photocopying, delivery services, computerized
research, and search and filing fees. Third party providers' fees and expenses, such as for
consultants, appraisers, experts, and local counsel, will be billed directly to you by the provider.
Invoices will normally be sent monthly for work performed and expenses posted the
previous month. Payment is due within 30 days of your receipt of the firm's invoice. If any
invoice remains unpaid for an unreasonable length of time, the firm may cease performing services
for you or withdraw from the engagement unless satisfactory arrangements are made to pay
outstanding invoices and future fees and expenses.
Unless you and we have agreed that our compensation will be made on a contingent,
capped, or flat fee basis, you understand that the cost of handling a matter is not predictable and
that we have not made a commitment or promise as to the maximum fees and expenses necessary
to complete a matter. You agree that, absent agreement on a contingent fee arrangement, payment
of the firm's fees and costs does not depend on the ultimate outcome of a matter.
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4. Client Responsibilities. You agree to cooperate fully with us in connection with all
matters in which the firm represents you and to provide us with all information known and
available to you that relates to the engagement and matter. You also undertake to cooperate with
the firm in complying with any regulatory or compliance obligations relating to the engagement
and to pay our invoices in accordance with Section 3.
In accordance with ABA guidance, we advise you that communications between you or
your representatives and your lawyers that may be accessed lawfully by third parties, such as
through hotel, home, employment, or public servers to which others may have rights of access,
can jeopardize or eliminate confidentiality, attorney/client and other evidentiary privileges and
protection against disclosure. We encourage you to assure that secure methods .are used for all
communications of confidential information.
5. Conflicts. As you are aware and we have discussed, our firm has a diverse practice
and represents many other companies and individuals, including some that are or may be your
competitors, customers, suppliers, and contract counterparties or your employer. During the time
the firm is representing you, some of the firm's present or future clients may have disputes or
transactions with you. We will not, without your informed consent, undertake any representation
of another current or future client in a matter that is the same or substantially related to any matters
we have handled or are handling for you in which your and the other client's interests conflict.
However, you agree that we may take on matters for current and future clients without further
consent if the matters are not substantially related to any current or prior matter for you, even if
that client's interests in that matter conflict with or are directly adverse to your interests, including
matters for advice, corporate or finance transactions, including mergers and acquisitions, litigation,
and arbitration, provided that, before we undertake such a matter, we have first reasonably
concluded that we can represent both clients' interests without compromising our independent
judgment or lessening our vigorous representation of either client and also take timely and
effective steps to protect all confidential information provided by and to each client. These
protections are meant to avoid the risks of diminished loyalty and compromised confidences. The
firm seeks similar agreements from many other clients to preserve its ability to represent you. We
are prepared to answer your questions and recommend you obtain advice of counsel independent
of our firm about this consent because we may not advise you on this topic. Your countersignature
of this letter or instructing us in a matter will signify your understanding of this conflict of interest
and consent to our representing you and another client in this way, subject to our adherence to
these conditions.
The firm represents AT&T Corporation ("AT&T") in State of California, et al. v. Cellco
Partllership d/b/a Verizon Wireless, et al., Case No. 34-2012-00127517, CA Super. Ct,
Sacramento Coty) (the "lawsuit"), which in our view is not substantially related to the matter with
which this engagement letter deals. One of the many non -intervening plaintiffs in this lawsuit is
the City of Santa Ana. Your and AT&T's interests in the lawsuit conflict. Before we may
represent these conflicting interests, you are entitled to assess the risk that our concurrent
representation of you and AT&T in your respective matters will lessen or impair our independent
judgment or our zealous representation of you or will compromise the confidentiality we owe you.
We have considered these questions and are confident that we can and will independently and
vigorously represent you and AT&T in your separate matters, and we will protect each client's
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confidential information by creating an ethical wall between our personnel working on and
confidential information relating to our work for you and our lawyers working on and confidential
information pertaining to our work for AT&T. We will block access by lawyers working for
AT&T to documents and information in our electronic document management system and archives
pertaining to this matter, and vice versa, and will instruct the lawyers in writing that they may not
seek, disclose, or take into account in their work for the client to which they are assigned any
confidential information of the other client, and they are to direct their ethical and professional
obligations to the client in the matter to which they are assigned. These protections are meant to
avoid the risks of diminished loyalty and compromised confidences. We are prepared to answer
your questions and recommend you obtain advice of counsel independent of our firm about this
consent because we may not advise you on this topic. Your countersignature of this letter or
instructing us in a matter will signify your understanding of this conflict of interest, your agreement
not to use the firm's representation of you to disqualify the firm from representing AT&T in the
lawsuit, and consent to our representing you and AT&T subject to our adherence to these
conditions.
The firm's representation of you in this matter does not give rise to an attorney/client
relationship between the firm and any other ministries, departments, bureaus, agencies or
instrumentalities or individuals, unless we agree otherwise in writing, and you agree that
representing you does not create a conflict of interest with any such non -represented entities or
individuals in the event we represent other clients adversely to their interests. You also agree that
neither an attomey/client relationship nor a basis for a conflict of interest will arise solely from
your providing us with confidential information about any such non -represented entities or
individuals.
6. Firm Privilege. If issues come up concerning our professional or ethical duties and
rights concerning our work for you, we may seek privileged and confidential advice from internal
firm lawyers or external legal counsel with relevant responsibility or expertise. Courts have
reached different views on the applicability of privilege and confidentiality between clients and
their lawyers unless the lawyer first terminates its relationship with its client in order to obtain
privileged and confidential advice, which may turn out to be necessary. The firm believes that the
view of courts and commentators endorsing lawyers' right to assert privilege in those
circumstances provides benefits to both the firm and the client. You agree that, if we consult
internal or external legal counsel in these circumstances about our work for you, you will not assert
a right to learn the content of such advice even if it concerns a question of actual or potential
professional liability, professional conduct, or other claim that might be considered a conflict of
interest or breach of duty. This paragraph does not alter our obligations to you in such a
circumstance.
7. Additional Terms.
a) No Lobbying. It is understood that the firm is not being retained in this matter
to engage in any activities, and will not during the scope of this agreement
engage in any activities on behalf of you, including political, public relations,
or lobbying activities, that would require registration under the Lobbying
Disclosure Act (LDA) or the Foreign Agents Registration Act (FARA).
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b) Independent Contractors. It is mutually agreed by and between the firm and
you that, in the performance of our covenants hereunder, the firm's attorneys
are and shall be attorneys for and independent contractors of, and not officers
or employees of, you.
c) Reporting Requirement. The firm agrees to keep you, and any other person(s)
designated by you, informed of significant events in the litigation matter,
including but not limited to trial/hearing date, parry deposition dates, filing of
motions for summary judgment or other significant motions, hearing date for
motion for summary judgment or other significant motions, settlement conference
date, and mediation date. The firm also agrees to provide the following reports:
i. 45-day initial evaluation of case and budget to be due 45-days from the
signing of this letter;
ii. Periodic status updates to be agreed upon by the firm and you;
iii. Updates on significant occurrences.
This letter sets out all of the terms of our engagement agreement with you. We thank you for this
opportunity to work with you. I am available to discuss any questions or comments now and
throughout the course of our representation. If you are satisfied that this letter correctly sets out
our agreement, please return a countersigned copy to me as soon as possible; however, these terms
will be binding on both of us when we begin work even if not countersigned or returned.
Very truly yours,
Quyen Ta
AGREED TO AND ACCEPTED:
CITY OF SANTA ANA
STINE RIDGE
City Manager
rDAY GOMEZ, CMC of the Council
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APPROVED AS TO FORM:
SOMA R. CARVALHO
City Attorney
By: Is, -f. L
JohrK4. Funk
Assistant City Attorney
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