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Canyon ISD tables decision to retain contingent-fee law firm to pursue storm damage recovery
Summary
After hearing that roofing consultants estimate roughly $24 million in roof damage while the insurer offered about $1.1 million, trustees on Feb. 9 voted to table a proposal to retain a contingency-fee law firm pending more documentation and review; the OAG review of a contingent contract would take roughly 60 days if the board advances the retention.
Canyon ISD trustees on Feb. 9 elected to table consideration of retaining a contingency-fee law firm to pursue additional recovery from an insurer after a June storm.
Staff reported that LBK, the district’s roofing consultant, estimated roughly $24 million in roof damage across affected campuses, while the insurer’s adjusted payment after deductible and depreciation was roughly $1.1 million. Administrators proposed retaining a specialist law firm (pre-identified by the roofing consultant) to pursue the difference on a contingency-fee basis; the firm would be paid a percentage of any additional recovery. Because contingent-fee contracts for a public school require Office of the Attorney General review, staff said the OAG approval process would begin after board approval and typically takes up to 60 days.
Trustees asked whether the district had provided the insurer with LBK’s estimate and whether additional negotiation had occurred; staff said they had shared their information and that the insurer continued to stand by the adjuster’s figures. Several trustees expressed concern about committing a percentage fee before exhausting negotiating avenues and asked to see the consultant’s documentation and prior negotiations with the insurer. One trustee said, "I would rather get 4 million than 1 million," referencing a hypothetical recovery, while others asked for a fuller vetting of alternatives.
Casey Posey moved to table the agenda item and Lori Gilliland seconded; the motion to table passed unanimously. Staff said tabling preserves the district’s option to move forward later; if the board elects to retain a firm it would trigger the OAG process and a 60-day calendar before legal services could begin under a contingent contract.
What’s next: The board will revisit the item after staff provides the roofing consultant’s documentation, prior insurer communications, and any additional estimates or competitive vetting of law firms.
Sources: Canyon ISD presentation and Feb. 9 board discussion.
