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HomeMy WebLinkAboutContract 45030 (2)CANTEY HANGER LLP ATTORNEYS RALPH H. DUGGINS DIRECT: 817.877.2824 EMAIL: RDUGGINS@CANTEYHANGER.COM October 3, 2013 City of Fort Worth c/o Tom Higgins City Manager 1000 Throckmorton Street Fort Worth, Texas 76102 Attention: Sarah J. Fullenwider, City Attorney Ladies and Gentlemen: Ch.)" OECMARY � 7 COn`�1TfC��i;'.: CANTEY HANGER PLAZA 600 WEST 6TH STREET, SUITE 300 FORT WORTH, TEXAS 76102-3685 817.877.2800 - METRO 214.978.4199 FAX: 817.877.2807 Thank you for contacting me ("Attorneys") about pursuing claims against Chesapeake Exploration, L.L.C., its affiliates ("Chesapeake") and Total E & P USA, Inc. and its affiliates ("Total") for underpayment of royalties due under various oil and gas leases to which the City of Fort Worth is Lessor and Chesapeake and/or Total are Lessee or successor Lessee. We agree to represent the City against Chesapeake and Total for the purpose of recovering any underpayment of royalties under the Leases and otherwise pursuing rights the City has or may have under those same Leases on a contingency fee g y basis. You agree that we do not and cannot guarantee a successful outcome of any claim. While we plan to vigorously prosecute any claims the City may have, you also acknowledge that the Attorneys have little control over the administration by a court of its docket and that dockets are generally crowded. In consideration of the legal services to be rendered to the City by the Attorneys, the City assigns and grants to the Attorneys as fees 3 3 -1 /3 % of any and all amounts or value received by the City, whether by way of settlement, or judgment from a court. In addition, the City agrees to pay from its portion of any recovery the costs and expenses incurred by. Attorneys. These include filing fees, court costs, deposition costs, costs for testifying and consulting experts, discovery, and damage calculation costs, copying costs • orncl►ir i',.;.(0tivaD OCT 242013 DALLAS • FORT WORTH • SOUTHLAKE IrT MIUITUU LAW FIRMS WORLDWIDE OFFICIAL RECORD gECRETARY 2 FN; wORTh, TX City of Fort Worth October 3, 2013 Page 2 of ($.10 per page) and Attorneys' travel expenses Because the claims against Chesapeake and Total are claims for which a court may award attorneys' fees, if attorneys' fees are awarded and are greater than the amount owed under this contingency fee arrangement, the City agrees to pay the attorneys the amount awarded by the court and collected as the attorneys' fees for the legal services rendered in lieu of one-third of any and all amounts or value received by the City. In lieu of the proposed contingency fee arrangement, you understand that Attorneys could have been hired on an hourly basis and that an engagement on an hourly basis would have required payment of fees regardless of whether or not the City is successful in the pursuit of its claims and that a contingency fee, if owed, may result in the payment of attorneys' fees that are greater than those that would have been paid if the matter had been handled on an hourly basis. Any offers of settlement will be promptly communicated to the City and no settlement of the City's claims will be made without the City's prior approval. The City may discharge us as attorneys at any time. However, if the City elects to discharge us as attorneys, it agrees that Attorneys will retain an interest in the City s claims as set forth in paragraph 1, provided we have not been discharged for malfeasance or negligence that materially damaged the City's claims. The City acknowledges it has a copy of the Texas Lawyers Creed and understands that Attorneys are committed to abide by that Creed. The State of Bar investigates and prosecutes professional misconduct by Texas attorneys. Although not every complaint or dispute with an attorney involves professional misconduct, the Office of General Counsel of the State Bar will provide information on how to file a complaint. Please call 1-800- 932-1900 for more information. The City agrees to cooperate with the Attorneys by making staff familiar with the Leases and the payment of royalties and records pertaining to those matters available to Attorneys upon reasonable notice. Please remember that most communications between City officials and the Attorneys relating to the claims against Chesapeake and Total are confidential and protected from disclosure by the attorney -client privilege. That privilege can potentially be lost, and some or all communications between us may be discovered, if the communications are disclosed to a third party. Under Texas and Federal Rules of Civil Procedure and Rules of Evidence, it is critical to preserve potentially relevant information once litigation is reasonably City of Fort Worth October 3, 2013 Page 3 of anticipated or commenced because the failure to comply with those rules can have dire consequences (including sanctions ranging from monetary penalties to much more severe penalties, including dismissal of the action). If it has not already done so, it is essential that the City immediately preserves until further notice any information pertaining to any of the leases at issue, including all external or internal communications concerning those leases. In the event you have not already issued a litigation hold in this matter, we request that you immediately do so. As part of that hold, please take care to discontinue any routine deletion or archival processes that might inadvertently delete or destroy any electronic or other information. Please let me know if you would like assistance in instituting a litigation hold. The City agrees that Attorneys' communications with the City with respect to this matter shall be made through Sarah J. Fullenwider, City Attorney, and/or Gerald Pruitt, Deputy City Attorney. The City agrees that Attorneys may, at their sole discretion, engage or employ p Y other attorneys, including John Cardwell, to work with Attorneys in connection with the engagement. Attorneys agree that all fees and expenses owed to such attorneys, including John Cardwell, will be the sole responsibility of Attorneys and that the City shall have no responsibility whatsoever for such fees or expenses. This Agreement contains all of the terms of the financial arrangement between the City and the Attorneys and can only be modified by a written document signed g by an authorized representative of the City and by the Attorneys. The engagement is effective October 1, 2013. City of Fort Worth By: Tom Higgins City Manager • Api roved as to form and legality: G Sarah/J. Fullenwider Attorney m AAA Itona1d Ps Go Atto Ralph H. Duggins