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HomeMy WebLinkAboutHIGH SWARTZ, LLPtioINSURANCE NOT ON FILE �h WORK MAY NOT PROCEED CLERK OF COUNCIL N-2021-061 LEGAL SERVICES AGREEMENT WITH CFlv jq 7r d HIGH SWARTZ Q,iZtVr1ati) 1�:i+ This AGREEMENT, made and entered into this 8th day of April, 2021, by and between High Swartz, LLP ("Attorneys"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the constitution and laws of the State of California ("City"). RECITALS A. The City of Santa Ana and the City Attorney's Office desires to employ Attorneys to assist the in- house attorneys for the City ("City Attorney") in Jonathan Vanloan v. City of Santa Ana, et al., United States District Court, for the Eastern District of Pennsylvania, Case No. 2:20-cv-06112- WB ("Complaint"). B. The Attorneys' will act as the City Attorney's pro hac vice sponsor for the United States District Court for the Eastern District of Pennsylvania, assist in the City Attorney's application for pro hac vice and perform other associated legal services as required by the City. C. City desires to employ Attorneys to assist in the provision of such legal services. D. Attorneys represent that they are licensed to practice law in the Commonwealth of Pennsylvania and admitted before the United States District Court for the Eastern District of Pennsylvania, have experience and knowledge related to practicing in the United States District Court for the Eastern District of Pennsylvania, pro hac vice sponsorship and providing legal advice regarding Pennsylvania state law and federal civil rights matters in the Third Circuit and desire to undertake said services. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. RETENTION OF ATTORNEYS On an as -needed basis, and at the sole discretion of the City, City hereby agrees to and does retain Attorneys, for the compensation hereinafter specified, to assist the City Attorney with the Complaint filed against the City. Attorneys accept said retention and agree to perform, in a timely and efficient manner, all such services as may be requested by the City Attorney. Attorneys shall confirm their acceptance of work requested by City in writing by e-mail or letter. 2. COMPENSATION FOR SERVICES RENDERED a. City agrees to compensate Attorneys, and Attorneys agree to accept from City, as and for payment in full for all services for the foregoing services, at the hourly rate of $300. Time will be billed in 1/I Oth of an hour increments. b. The total sum to be expended under this Agreement, shall not exceed $50,000, including any extension periods However, nothing in this Agreement requires the Attorneys to work for no compensation and if the value of the services exceeds $50,000 and City declines to exceed this cap, Attorneys retain the right to withdraw as counsel for the City. C. City agrees to reimburse Attorneys for out-of-pocket expenses, including but not limited to, mileage, copying costs, service of process, and mail services authorized by the City Attorney in connection with the performance of duties under this Agreement. In-house printing, copying, and reproduction charges will be reimbursed at the rate of 20 cents per page. Automobile travel will be reimbursed at the standard mileage rate in effect at the time of billing by the Internal Revenue Service. Any costs in excess of $5,000 require City Attorney approval prior to incurring the expense. All expenses must have supporting documentation submitted with the invoice. 3. METHOD OF PAYMENT Attorneys shall submit a monthly statement specifying the services performed, dates and number of hours, and an itemization of expenses related thereto with supporting documentation (i.e. receipts, invoices, copy of check, etc.). City acknowledges that the fees incurred for work performed by Attorneys on its behalf are due and owing within 30 days of the work being performed. At Attorneys' discretion, they may choose to defer payment. Notwithstanding this, City agrees that it shall tender payment within 30 days of written demand by Attorneys for payment. Unless expressly stated thereon, monthly statements generated by Attorneys shall not constitute written demand, but shall simply be a written reflection of work performed and fees incurred. 4. CONTROL OF LEGAL MATTERS Attorneys agree that each and every matter or proceeding in which they undertake to assist the City Attorney, as aforesaid, shall be and remain under, and subject to the control and direction of said City Attorney at all stages, and that they shall at all times keep the City Attorney informed of all matters pertaining thereto. City will keep Attorneys informed of all significant developments in matters relating to any representation undertaken by Attorneys. Attorneys further agree, if and when their retention hereunder is terminated by City, as hereinafter specified, they shall return to City Attorney any and all files then in their possession concerning each and every matter or proceeding in which they represented the City pursuant to this Agreement. Nothing in this Agreement shall compromise the independent legal judgment of Attorneys and Attorneys reserve the right to withdraw as counsel for City if irreconcilable differences arise regarding the provision of legal services by Attorneys to the City. 5. TERM The term of this Agreement shall commence on the date first written above for a one (1) year term, unless terminated earlier pursuant to Section 15 below. The term of this Agreement may be extended for up to one (1) year upon a writing executed by both parties, including the City Manager and the City Attorney. 6. INDEPENDENT CONTRACTORS It is mutually agreed by and between the parties that, in the performance of their covenants hereunder, Attorneys are and shall be independent contractors, and not officers or employees of City. 7. INSURANCE Attorneys shall provide to the City Attorney proof of Professional Liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim, and maintain such insurance throughout the tern of this Agreement. If Attorneys fail or refuse to produce and maintain the insurance required by this section, or fail or refuse to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Attorneys' right to be paid for its time and materials expended prior to notification of termination. 9. INDEMNIFICATION Attorneys agree to and shall indemnify and hold harmless the City, its officers, agents, employees, and representatives from liability for personal injury, damages, restitution, judicial or equitable relief to the extent caused by Attorneys' negligent or wrongful performance or conduct related to this Agreement. 10. CONFIDENTIALITY All information and documents shared with Attorneys as well as all work performed by Attorneys in connection with this Agreement should be treated as strictly confidential. Moreover, all communications between Attorneys and City shall be treated as protected by the attorney -client privilege and the attorney work product doctrine. Accordingly, information received by Attorneys from City should be kept in a secure place, and no information about this work may be disclosed to any third party without City's prior written approval. Attorneys shall provide materials directly to the City Attorney, Sonia Carvalho, or selected members of her office, as directed by the City Attorney. All such information and any written product in connection with Attorneys` retention under this Agreement, shall be marked as "PRIVILEGED AND CONFIDENTIAL / ATTORNEY -WORK PRODUCT" and shall be the property of the City Attorney's Office, and shall be returned/provided to the Office of the City Attorney with all copies upon the request of the City Attorney. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Attorneys, disclosed in a publicly available source; (c) is in rightful possession of the Attorneys without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Attorneys without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Attorneys covenant that it presently has no interests and shall not have interests, direct or indirect, that would conflict in any manner with performance of services specified under this Agreement. The City is aware that Attorneys have been retained to have been retained to represent the City of Fountain in this same proceeding brought by Jonathan Vanloan. Attorneys have agreed to represent both Cities in defense of this matter as long as there is a knowing and informed waiver of any conflict created by this representation. The Pennsylvania Rules of Professional Conduct provide that an attorney shall not represent a client if the representation involves a concurrent conflict of interest. A concurrent conflict of interest exists if: (i) the representation of one client will be directly adverse to another client, or (ii) there is significant risk that the representation of one or more clients will be materially limited by the lawyer's responsibilities to another client, former client, or third person, or by a personal interest of the lawyer. Notwithstanding the existence of a concurrent conflict of interest, a lawyer may represent a client if: (i) the attorney reasonably believes that the attorney will be able to provide competent and diligent representation to each affected client; (ii) the representation is not prohibited by law; (iii) the representation does not involve the assertion of a claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal; and (iv) each affected client gives its informed consent. It is Attorneys' view that their representation of each City may present a concurrent or future conflict of interest. While both Cities have similar defenses and goals at this point, the Cities' circumstances are not identical and they may develop diverging views as to how to proceed. However, Attorneys believe that they will be able to provide competent and diligent representation to the both Cities with respect to their defenses because of their similarity and they may receive the benefit of a cost savings in the form cost sharing. The proposed representation is not prohibited by law, and does not involve the assertion of a claim by one client against another client Attorneys represent in the same matter. Accordingly, Attorneys believe they may proceed with the representation, provided consent is obtained from both Cities. Should the Cities' interests diverge, Attorneys may have to step back from representing one or both of Cities depending on the circumstances. By entering into this Agreement, the City waives the concurrent conflict of interest and/or the potential future conflict of interest. 12. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702-1988 Facsimile (714) 647-6956 Courtesy Copy: City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Fax (714) 647-6515 To Attorneys: Richard C. Sokorai High Swartz LLP 40 East Airy Street Norristown, PA 19401 Fax (610) 275-5290 A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed and transmitted to the new address. If sent by snail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax , communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Attorneys, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Attorneys. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Attorneys or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Attorneys, Attorneys may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject of this Agreement performed by City personnel or by other Attorneys retained by City. 15. TERMINATION This Agreement may be terminated by City at any time. In such event, Attorneys shall be entitled to receive and the City shall pay Attorneys compensation for all services performed by Attorneys prior to receipt of such notice of termination. As a condition of such payment, Attorneys shall deliver to the City all files and records generated under this Agreement as of such date. Attorneys may terminate this agreement, subject to their obligation to provide written reasonable notice of at least thirty (30) days to arrange alternative representation. In such case, City agrees to secure new counsel as quickly as possible and to cooperate fully in the substitution of the new counsel as counsel of record in in the Actions. 16. DISCRIMINATION Attorneys shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Attorneys affirm that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 17. JURISDICTION — VENUE This Agreement has been executed by City in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. MISCELLANEOUS PROVISIONS Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 19. COUNTERPARTS; SIGNATURES This Agreement maybe executed in counterparts, secured via facsimile transmission or otherwise, each of which shall be deemed to be an original. Photocopies of any executed counterpart shall have the same force and effect as an original. City further acknowledges that it has read and received a copy the full text Section 6148 of the California Business and Professions Code prior to signing this Agreement. 20. NO GUARANTEES City understands and acknowledges that there are certain risks and uncertainties in the pursuit of any matter for which Attorneys have been retained, that law is not an exact science, that Attorneys have made no representations or guarantees of success regarding the conclusion of any particular matter, and that all expressions relative thereto are matters of Attorneys' N-2021-061 opinion only. In other words, Attorneys make no representations or guarantees of success regarding any matter. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY OF SANTA ANA ICristnc Ridge� City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Jose Montoya Deputy City Attorney ATTEST aisy Gomez Jerk of the Council HIGH SWARTZ, LLP By: Richard C. Sokorai, Esquire Title: Partner Francine R Villareal Digitally signed by Francine R. Villareal Date: 2021.04.21 10:07:27-07'00' PENNSYLVANIA CNALAWYERS PROFESSIONAL LIABILITY POLICY DECLARATIONS Agency Branch: Policy Number: 740558 912 596805740 1. NAMED INSURED AND MAILING ADDRESS: High Swartz LLP 40 East Airy Street Norristown, PA 19404 Insurance is provided by Continental Casualty Compan. 151 North Franklin Street, Chicago, IL 60606 A Stock Insurance Company. NOTICE TO POLICYHOLDERS: This is a Claims Made and Reported policy. It applies only to those claims that are both first made against the insured and reported in writing to the Company during the policy period. Please review the policy carefully and discuss this coverage with vour insurance agent or broker. 2. POLICY PERIOD: Inception: 06/30/2020 Expiration: 06/30/2021 at 12: 01 A.M. Standard Time at the address shown above. 3. LIMITS OF LIABILITY: Each Claim: $ 2,000,000 Inclusive of Claims Expenses Aggregate: $ 5,000,000 4. DEDUCTIBLES: Aggregate: $ 25,000 Inclusive of Claims Expenses 5. POLICYPREMIUM: $ 41,291.00 Includes New Admittee Credit of $ 0.00 Includes Lawyers Data Breach and Network Security Premium, see coverage endorsement if applicable 6. FORMS AND ENDORSEMENTS ATTACHED AT INCEPTION: CNA-72064-PAC (Ed. 05/2016), CNA-71607-PAC (Ed. 12/2012), G-118019-A (Ed. 12/2011), G-118024-A (Ed. 04/2008), G-118029-A (Ed. 04/2008), G-121011-A (Ed. 04/2008), G-145184-A (Ed. 06/2003) 7. WHO TO CONTACT: To report a claim: CNA — Claims Reporting P.O. Box 8317 Chicago, IL 60680-8317 Fax: 866-773-7504 / Online: www.cna.com/claims Email: SpecialtyProNewLoss@cna.com Lawyers Claim Reporting Questions: 800-540-0762 06/30/2020 Countersignature Date Authorized Representative Date CNA-71607-PAC (Ed. 12-12) Page 1 �oRaN RiskMwagementDMsfan REVIEWED & APPROVED BY. - Risk Management Analyst XEO 05 001 01 16 Insurer: CRUM&FORSTER e, r*ioKax tOrarv�ar The North River Insurance Company EXCESS LIABILITY POLICY DECLARATIONS Policy Number: 550-112441-4 NOTICE: DEPENDING ON THE TERMS, CONDITIONS AND LIMITATIONS OF THE FOLLOWED POLICY, THIS POLICY MAY (1) ONLY PROVIDE COVERAGE FOR LOSS FROM CLAIMS FIRST MADE OR FIRST MADE AND REPORTED DURING ITS POLICY PERIOD; (2) HAVE ITS LIMIT OF LIABILITY REDUCED BY THE PAYMENT OF DEFENSE COSTS AND/OR CLAIM EXPENSES; AND (3) NOT IMPOSE A DUTY TO DEFEND ON THE INSURER. PLEASE READ THE FOLLOWED POLICY AND THIS POLICY CAREFULLY AND DISCUSS THE COVERAGE PROVIDED THEREUNDER AND HEREUNDER WITH YOUR INSURANCE AGENT OR BROKER. Item 1. Policyholder: HIGH SWARTZ LLP Policyholder Address: 40 East Airy Street Norristown, PA 19404 Item 2. Policy Period: From: 06/30/2020 (Effective) To: 06/30/2021 (Expiration) (12:01 a.m. local time at the Policyholder Address shown above) Item 3. Limit of Liability: $2,000,000 Item 4. Total Underlying Limits: $2,000,000/$5,000,000 Item 5. Premium: $15,600 Item 6. Claims Address: E-Mail: mapsnol@cfins.com Mail: Crum & Forster Claims Department 305 Madison Avenue Morristown, NJ 07962 Item 7. Insurer Address: Crum & Forster Professional Risk 1 Marcus Boulevard, Suite 101 Albany, NY 12205 Item 8. The following endorsements, if any, are made a part of this Policy at issuance: XEO 05 001 XEO Declarations XEO 00 001 XEO Policy MI 07 002 01 15 North River Signature Page XEO 21 001 Pending and Prior Litigation Exclusion XEO 24 010 Non -Following Form Sub -Limits - Underlying Exhaustion Recognized XEO 70 001 PA Amendatory IL P 001 01 04 OFAC Advisory Notice to Policyholders Item 9. Schedule of Underlying Coverage: Underlying Insurer Underlying Policy Underlying Limit Underlying Policy Period * Continental Casualty Company 596805740 $2,000,000/$5,000,000 06/30/2020 to 06/30/2021 Terms appearing in "Bold" typeface are used in this Policy with the meanings and values ascribed to them above; however, subject to the Changes section, the "Followed Policy" means the policy in the chedule with an "*" at the beginning of its row. RiskM—agementDMsian r. REVIEWED & APPROVED BY.- P'. M44441 Risk Management Analyst y NJ