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Council approves outside‑counsel package for flooding, Ash Street, and asbestos litigation
Summary
Council authorized multiple amendments and retentions for outside legal counsel tied to January 2024 flooding, the Ash Street (101 Ash) asbestos matter and related insurance work. Council recorded one 8–1 vote and several unanimous approvals; staff said the litigation now includes more than 35 cases and roughly 1,500 plaintiffs.
City Council on Jan. 13 approved a package of amendments and retentions to outside legal-services agreements intended to support the City Attorney’s Office in large‑scale litigation tied to January 2024 flooding, the 101 Ash Street asbestos litigation, and associated insurance matters.
Assistant to the City Attorney Travis Phelps summarized the request and said the flood litigation has grown to over 35 cases involving more than 1,500 plaintiffs and dozens of law firms, requiring additional outside counsel capacity. The council took separate recorded votes on five items:
• S400 — third amendment to Hugo Parker LLP agreement (term extension through Dec. 2026; no additional funds requested). Passed 8–1 (Councilmember Moreno recorded a no vote).
• S401 — first amendment to Dean Gazzo Roystocker LLP (requested increase of $1,000,000 to bring that contract to a $1,500,000 not‑to‑exceed limit to cover flood litigation). Passed 9–0.
• S402 — second amendment to Buckhalter (Buckhalter APC / insurance-litigation counsel) to increase the not‑to‑exceed amount by $600,000 to handle insurance-related work tied to De Anza/101 Ash and flood cases. Passed 9–0.
• S403 — approval to retain McDougall Beamer (large‑scale class action and inverse‑condemnation experience) on an agreement not to exceed $500,000 to assist with the massive scope of flood cases. Passed 9–0.
• S404 — amendment to Schwartz (panel outside counsel) requesting an additional $1,000,000 (bringing the not‑to‑exceed to approximately $1,500,000) to continue representation in flood and related matters. Passed 9–0.
Councilmembers asked about coordination, lead‑counsel roles and oversight of billing; staff said assignments would be split among outside firms with in‑house deputies coordinating to avoid duplication. Councilmember Moreno voiced opposition to the Hugo Parker extension citing prior concerns but supported the remainder of the package.
Next steps: Outside counsel will begin or continue representation under amended terms; the City Attorney’s Office will provide updates (as requested by council) in closed session on litigation developments and billing oversight.
