Committee approves contingent legal-retention with Susman Godfrey for virtual-gambling enforcement

The Budget and Finance Committee approved a proposed agreement to retain Susman Godfrey LLP to assist the city with civil enforcement actions related to virtual gambling, with the firm to be retained on a contingency-fee basis and subject to close city oversight.

City Attorney’s Office representative Michael Austrum briefed the committee on the proposed retention and described the arrangement as a cost-neutral contingency arrangement: outside counsel would front investigatory costs and fees would be taken from any recoveries. Austrum said the proposed retention was part of a strategy to leverage outside expertise in a complex enforcement area while keeping the city’s outlays limited. He told the committee: “Esta es una tarifa de contingencia, no se debe honorarios de abogados a menos que haya un costo de recuperación.”

Committee members asked about the scope of work, oversight and potential exposures; the city attorney’s office said it would retain close supervisory control, require approvals for non-routine expenditures and aim to ensure any engagement conforms with professional conduct rules. The office said contingency arrangements are standard in some enforcement contexts, and that the office’s agreement requires outside counsel to obtain city approval for expenses above a specified threshold.

The committee voted to approve the retention; the roll call was announced as four in favor with one absence. Staff said the agreement will be finalized under terms ensuring the city attorney remains in charge of litigation decisions and that outside counsel will seek recoveries to cover their fees and costs where applicable.