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Committee approves contingency contract with outside counsel for online-gambling enforcement
Summary
The committee approved a legal-services agreement to retain Sussman Godfrey LLP on a contingency basis to assist the City Attorney's Office with civil enforcement actions targeting online gambling; the office retained settlement authority and oversight over the firm.
The Budget and Finance Committee on June 4 approved a proposed legal-services agreement with the law firm Sussman Godfrey LLP to assist the City Attorney's Office in civil enforcement work related to online gambling.
Senior Assistant City Attorney Michael Bostrom told the committee the engagement would be on a contingency-fee basis and intended to be cost-neutral to the city: the firm would advance investigatory and litigation costs and be paid only from recovery. The city attorney's office stressed that it would retain control over any litigation and settlement decisions; the committee emphasized oversight safeguards.
Committee members asked whether the city or firm had initiated contact and whether the firm’s existing representations posed conflicts; staff said conflicts were checked and none were identified that would bar the engagement. Members also asked whether penalties or recoveries would flow to the city; staff explained that under the California Unfair Competition Law civil penalties can yield funds to the city attorney's office (with half of penalties directed to the county), and restitution and injunctive relief are also possible remedies. The committee approved the item 4–0 (Hutt absent).
Ending: The committee approved the contingency agreement and instructed that city attorneys maintain oversight and approval authority for any expenses and settlement decisions.
