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244129 ��/ ORI6INAL TO CITY CLERK 244129 CITY OF ST. PAUL FoErrci� N0. � OFFICE OF THE CITY CLERK C NCIL RESOLUTION—GENERAL FORM PRESENTED BY COMMISSIONE DATF WHEREAS, various former and present ele�ted oftieial� of the City of St. Paul were naa�ed as defendanta in a damage suit entitled Charles P. MeCarty, Js. , et al. , vs. City of St. Paul, a Municipal Carporation, et al. , Distriet Court No. 346025; and • WHEREAS, by reason of interest the Corporation Coun�el could not appear and defend these various officials, and they were acco=dingly required to seek private coun�el; and WHEREAS, said action has been successfully conclu.ded in favor of such officials and arose from the duti�s, activitie�, and funetions of the government of the Cityf and WAEREAS, the Corporation Counsel by letter attached hereto � and made a part hereof by reference has requested the appointment of counsel to defend these officials= now, therefore, b� it � RESOLVED, That the following attorneys are appointed �pecial caun�el to defend the public officials whose names are listed herein in connection with the litigation �et forth above, and that their fees are fixed as follows: Lawrence J. Hayes and Maun, Hazel, � Hayes, Green, Simon and Aretz -- � Mayor Vavouli� and Commissioners Holland, c Peterson, Loss, Meredith, and Rosen . .. ea °C � Feea $12,000 n. a o ¢ v � � John E. Daubney -- � Commissioner DeCourcy and Comptroller Mitehell Fee: $ 1,400 COUNCILMEN Adopted by the Council 19— Yeas Nays � Carlson Dalglish Approved 19—_ Meredith Tn Favor Peterson Sprafka Mayor A gainst Tedesco Mr. President, Byrne ' O �ORIOINAL TO EITY CLHRK 2/441�jj� CITY OF ST. PAUL FOENCIL NO. OFFICE OF THE CITY CLERK COUNCIL RESOLUTION—GENERAL FORM PRESENTED BY COMMISSIONER DATF -2- Richard D. Goff and Goff & Goff -- Commissioners Mortin�on and WinkeZ Fee: $1,400 Terrance S. O'Toole Commis�ioner Dalglish Fee: $1,400 Peter S. Popovich and Peterson & Popovich Commissioner Marzitelli Fees $1,4�0 and be it FURTHFR RESOLVED, That the above fee� ahall be disbursed only after the expiration of a period of 30 days from and after pa,�sage and publication of thig resolution and only after there shall be presented to the Comptroller by each of the above attorneys a written instrument, in form acceptable to the Corporation Counsel, accepting such sum in full and complete discharge of all claims for fees, costs, or disbur�e- ments arising out of the aforesaid litig�tion against his listed clients or the City of St. Paul, and undertaking to repay to any individual client who has contributed all or a portion of said attorne�' s fees, costs, or disbursements from his own funds prior to the passage of thi� resolution all such contributions made, to the extent of th� fee pro- vided to be paid hereunder; and be it FUR�'HER RESOL�ED, That the fees set forth above are to be paid out of ar�d charged against dudgment and Compromise �'und �910-421. COUNCILMEN Adopted by the Council MAY 2 8 196�9_ Yeas Nays Carl.son �►Y 2 8 1��9 � proved 19—_ � � Tn Favor Pebe�t � Sprafka J Mayor A gainst Tedesco Mr. President, Byrne p�g�,��i,E� MAY 3�. ���,� 0 Ar�3Cod i 612 �aa���TY ��`�e,�� THOMAS JELSTEARN$ ' � � JON R. DUCKSTAD __� �r ARTHUR M. NELSON �,,. "` ' ti� JEROME J.SEGAL THOMAS M. MOONEY ROBERT E.O'CONNELL JAMES W. KENNEY Fint Assi:fiant CITY OF SAINT PAUL KENNETH J. FITZPATRICK PAUL F. McCLOSKEY,JR. DANIEL A. KLAS LOUIS E.TORINUS Spscial Autstant LE6AL DEPARTMENT JOSEPH E�RTWRIGHT 316 City Hall, St. Paul. Mieeetota b5102 ���n JOSEPH P. SUMMERS '��9 Corporation Couns�l May 28 , 1969 STATEMENTS SUBMITTED BY ATTORNEYS IN SNOW REMOVAL CASES: Maun, Hazel, Hayes , Green, Simon and Aretz (Mayor Vavc�ulis , Comm' rs Holland, Peterson, Loss , Meredith, Rosen) �25pe�161ient 15156. 96 total John E. Daubney Comptroller Mitchell 1508.00 Commissioner DeCourcy 1 26. 00 3034.00 total Richard D. Goff & Goff and Goff Commissioner Mortinson 2756.00 Commissioner Winkel 2 06.00 52 2.00 total Terrance S. 0 ' Toole Commissioner Dalglish 4350.00 total Peter S. Popovich & Peterson and Popovich Commissioner Marzitelli 2500.00 total John Cochrane James P. Miley 12000.00 total Charles P. McCarty, Jr. Total bills submitted: �42, 302. 00 Total settlement 22,600.00 �� � � � �-I `-� 1 �� Araa'Cod�612 ��'TY °P� PAUL J. KELLY � THOMAS J.STEARNS 223-5121 "���a;;�;"ed'y .+ JON R. DUCKSTAD _ _ .+�t ,t ARTHUR M. NELSON �3, " �� JEROME J.SE6AL � THOMAS M. MOONEY ROBERT E.O'CONNELL JAMES W. KENNEY Fint Assistant CITY OF SAINT PAUL KENNETH J. FITZPATRICK PAUL F. McCLOSKEY,JR. DANIEI A. KLAS LOUIS E.TORINUS Sp�etal A:si:tant LE6AL DEPARTMENT JOSEPH E.CARTWRIGHT 316 Clty Hall. St. Paal. Misaesota 55102 .IOSEPH P. SUMMERS Corporation Counsel May 2 8, 19 6 g To the Honorable Mayor and Members of the City Council : In 1966 Mr. Charles P. McCarty, Jr. commenced legal actions in behalf of himself and the taxpayers of the city to enjoin the city from emergency borrowings to meet current budget costs for various items , including snow removal , and to obtain damages in the amount of �26,000, 000 from past and present city officials who participated in certain allegedly unlawful borrowings . The injunction action was concluded by an order which, in effect , requires the city to refrain from emergency borrow— ing unless a genuine emergency exists , defined within narrow criteria. Its conclusion can thus be described as favorable to the taxpayer' s point of view represented in the lawsuit. The �26,000,000 damage action, on the other hand, was dismissed pursuant to motion for summary judgment, upheld by our Supreme Court. In connection with the second action, the Corporation Counsel was unable to represent the various defendants by reason of interest. They were thus compelled to seek outside counsel notwithstanding the lawsuit arose from the duties , activities, and functions of city government and out of the course of their employment. At the time outside counsel were retained, the Council did not adopt the resolution referred to by Section 178 of the City Charter relative to employment of counsel other than the Corporation Counsel . This action is quite defensible since, had the litigation not been successfully concl�ded, a question might exist whether the public officials involved were entitled to payment of attorneys ' fees out of public funds . It can also be argued that Section 178 does not apply where , as here , counsel is retained to represent city official� , not "the city" as described in that section. In any event it is , in my opinion, proper for the Council at this time to ratify the employment of these counsel and provide for the payment of a portion of their r ' Mayor and Council 2. May 28, 196g fees . Absent intervening rights of third parties , the Council can in the ordinary case do retroactively what it could have done prospectively. You appropriated �25 , 000 in the Judgment and Compro- mise fund for 196g to handle this matter. Because of the defeat of the temporary tax increase referendum, this amount is reduced by 13. 22�0, leaving �22,695 . The bills rendered to various public officials by their attorneys in connection with this �26 , 000, 000 lawsuit amounted to �30, 284. 96, including disbursements . I would propose that the sum of �17 ,600 be paid to these attorneys in full settlement of all amounts owing to them by their clients . The amounts to be received by the respective attorneys , as well as the names of the public officials whom they repre- sented, are set forth in the attached resolution. This disposition is agreeable to counsel . A more sensitive question is involved with respect to a claim which has been presented to me by the attorneys for Mr. McCarty. Clearly, the City should not admit to the proposition that attorneys who commence unsuccessful damage actions against the City, expecting to be compensated out of the proceeds , should be paid attorneys fees out of public funds if their actions fail . However, a different situation exists with respect to the injunction suit where , from one point of view, these attorneys stopped a practice of City government which was , in the opinion of some , doing pecuniary harm to the taxpayer. Having saved the taxpayer money, the argument goes, these attorneys have a meritorious claim in justice , though not a legal right, to receive some compensation from the taxpayer. Based on this rationale , governmental bodies have , on occa- sion, and purely as a matter of legislative grace , made payment of fees to attorneys involved in successful taxpayers ' suits . Clearly the precedent which could be established by such a payment could be most vexatious to city government. It could encourage persons to bring frivolous lawsuits which could severely hamper public administration, relying upon the possibility that in event of victory, the city would pay their attorneys ' fees . In this instance , certain factors exist of a legal and practical nature which, in my judgment , make it mutually desirable that some portion of the claim submitted by Mr. McCarty' s attorneys be paid. The claim is in the amount Mayor and Council 3. May 28 , 1969 of �12, 000 and relates exclusively to the injunction suit , not the damage suit. I would recommend payment of �5 ,000. A resolution is attached accomplishing this objective . It will accordingly be seen that out of total claims of more than �42, 000, the City will pay �22, 600 in full and complete discharge . The resolutions have been drawn to be effective thirty days after publication, in order to provide possible objectors with an opportunity to file suit prior to disbursement . Sincerely, . oseph P. Summers Corporation Counsel JPS:bl DUPLICAT6 TO PRINTL+R 2441�� CITY OF ST. PAUL couNCi� NO. OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION—GENERAL FORM PRESENTED BY COMMISSIONEQ DATF WI�REAS, variou� form�r and present elected officia�l� of the Cfty of 5t. Pau1 were named a�o degenda.nts in a dsmage �uit entitled Charles F. McCarty, Jr., et al., vs. City of St. Paul, a Municipa�. Corporation, et a1., pietrict Cottrt No. 346025f and WHEREP,S, by resson o� int�re�t the Corporation Cotlnsel could not appear and d�fend t2zese varioue officisl+�, and they were accordingly r�quired to s��k private coun�el: and WHEREAS, sai,d action has been �ucce�aefui2y concluded in favor of such oEficial�c and ar�►ee from the dutie�a, ac�ivitiea, and functicans af the gavernment of the Ci�y� arid WHEREA�, the Casporation Counael by l�atter attached hereto and made a part hereof by ref�arence h�,e requested the a�ppointm�nt of counse�. to deaEend these o#�'icials= now, th�refare, be it RESOLVED, That the tollowinq attorneys are appcainted special coun�el to defend the publie offici�ls whose nr�mes are listed herein in connecti+an wi�ki the litiqation $et £orth �aone, and that their �ee�s sre fixed ss follows: Law�Cenee J. Hsyes and Msun, 8a.zei, Hayes, Green� Simon and Aretz -- Mayor Vavoulis arid CQa�mni�siotaer� Holland, Peteraon, Lo��, Meredith, and Ro�en Fee: $12,000 John E. Daubney -- Com�niasioner DeCourcy and Ceamptroller Mitchell g�,�t 1,440 COUNCILMEN Adopted by the Counci _19— Yeas Nays Carlson Dalglish Approved 19—_ Meredith Tn Favor Peterson Sprafka Mayor Tedeaco A gainst Mr. Preaident, Byrne O DUPLiCATB TO PR(N'ISR �O 244129 CITY OF ST. PAUL couNCi� OFFICE OF THE CITY CLERK FILE COUNCIL RESOLUTION—GENERAL FORM PRFSENTED BY COMMISSIONER DATF ��.. Richard D. Cxo�f and Goff & 4o�f -- Co�rennissionez$ Mortine�on and Winkel Fee= $1,400 Terrance 3. E�'Tooie Commi��sion�x Da3glish Fees $1,400 peter S. Popovich and Peterson & Popovich Commi��ioner I►�arzxtelli Fees $1,40� and be it FUR'PHER RESOLVED, Th�t the above feea shall be disburaed anly after the �.xpiration og a period of 30 day� from and ��ter passage and publication of this resolution and only after there �hall be presente tp the Coraptroller by each of the above attorney� a wr:itten instrument, in form acceptable ta the Corporation Counsel, accepting �uch sum in full and complete discharge of all clsims for �ees, costs, or disburse- ments arising out of the aforesaid l.itiqation aqainat hie listed clients or the �ity of St. Paul, and undertaking to r�pay to any individual � cli�nt who has contributed all or a portion of said attorney'� fees, costs, or disbursemer�t� fram his own funds prior �a the paseage of this resolution all such contributions made, to the extent of the fee pro- vided to be paid hereundery and be it FURTHER RESOLVED, T"�at the fe�s set forth above are to be psid out of and charged against �idgment and Compromise �'und 0910-421. COUNCILMEN Adopted by the Council ��� � `� ���— Yeas Nays ry� ,��;.� Carlson � ' W "� � � Approve� 19_._ ���' n Favor Pete�89�-- Mayor Sprafka �' Against Tedesco Mr. President, Byrne O