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Council authorizes ad hoc to explore litigation over fire-truck procurement
Summary
Council authorized formation of an ad hoc to consider litigation and retain outside counsel to investigate alleged anticompetitive practices by REV Group, Oshkosh Corporation, Pierce Manufacturing and related entities in fire-truck procurement; the resolution envisions contingency-fee outside counsel.
Corporation Counsel Daniel Casagrande presented a resolution authorizing the city to engage outside counsel to investigate and, where appropriate, bring claims relating to alleged anticompetitive practices by manufacturers of fire apparatus, including REV Group Inc., Oshkosh Corporation and Pierce Manufacturing Inc.
The memorandum read into the record asked the council to approve retaining Simonson Sussman LLP and Baron and Bud, P.C., on a contingent-fee basis to pursue potential antitrust, unfair-competition and related claims arising from injuries or damages associated with those products. The communication said outside counsel would investigate and prepare claims where legally appropriate and that their fee would be a fixed percentage of any recovery.
Councilman Poussaint (through the chair) moved to send the resolution to an ad hoc consisting of corporation counsel, the mayor’s office, outside counsel, the fire chief and other necessary departments; the council approved the referral. The ad hoc membership named by the chair included Councilman Peter Buzadeh, Chair John Laffinghouse and Councilman Mike Henry.
Why it matters: the matter would allow the city to pursue legal remedies on claims of improper procurement or anticompetitive conduct by major suppliers of municipal fire apparatus. Because the engagement contemplates outside counsel on contingency, the financial exposure for the city would be tied to recoveries rather than hourly fees, but potential litigation would carry legal and reputational risk and could affect future procurement relationships.
What happens next: the ad hoc will coordinate with corporation counsel and the named outside firms to investigate allegations and determine whether to file claims. Further council action would be required to commence litigation or approve specific settlements.
Quote from the record: "Outside counsel will investigate all potential actions and will, where legally appropriate, prepare claims against those responsible," the corporation counsel's communication said.
Provenance: topicintro SEG 603; topfinish SEG 628.
