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City staff outlines legal risks and potential costs if Garden Street case goes to trial
Summary
City staff said trial is set for mid‑June and estimated trial costs of about $30,000 plus additional appellate expenses; commissioners discussed fund balance and the potential for prevailing‑party fee recovery under the proposed settlement.
City staff reviewed the litigation context and outlined possible financial exposures if the case proceeds to trial. The staff member said the judge denied a motion for continuance and that trial is expected to last about four days; opposing counsel had estimated a four‑day trial and staff estimated trial costs at roughly $30,000 with appellate costs possibly adding another $30,000–$40,000.
When commissioners asked whether the city has funds to cover a trial, the city administrator (or clerk) said the city had about a $600,000 fund balance as of April but that not all of that is unencumbered. "We have about a $600,000 fund balance to the good year to date, as of April," the administrator said, noting the commission would have discretion to place funds toward legal defense if necessary.
Commissioners also noted the agreement’s prevailing‑party attorneys' fees clause, which states the prevailing party in any litigation arising out of or related to the acknowledgement shall be reimbursed reasonable attorneys' fees and costs. Staff flagged that fee‑shifting language as a material exposure, and discussed that if the city rejects the settlement and later loses a trial, monetary exposure could be substantial.
