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