HomeMy WebLinkAboutResolution 5385-04-2021A Resolution
NO. 5385-04-2021
AUTHORIZING THE CITY ATTORNEY TO INCREASE THE AMOUNT TO BE
PAID TO THE LAW FIRM OF KELLY HART & HALLMAN, LLP, AS
OUTSIDE COUNSEL FOR LEGAL SERVICES RELATED TO LAWSUITS
CHALLENGING THE CITY'S GAME ROOM ORDINANCES
WHEREAS, on October 14, 2014, the City of Fort Worth adopted Ordinance Nos.
21499-10-2014 and 21500-10-2014 to regulate game rooms through licensing and zoning;
and
WHEREAS, the City has been sued in three separate lawsuits , to date, challenging
the City's Ordinance Nos . 21499-10-2014 and 21500-10-2014 , in Cause No. 48-276440-
15 , Apolonia Garcia, et ux. v. City of Fort Worth, Cause No. 17-276483-15 , Ja ck Davi s,
et al. v. City of Fort Worth , and Cause No. 352-276568-15 , AFAD Inv estments, In c. v. City
of Fort Worth; and
WHEREAS , in 2017 the Court entered a judgment in the Davis litigation . Both
parties filed an appeal and the Second Court of Appeals issued its opinion and the City
and Plaintiffs filed petitions for review in the Texas Supreme Court. The Texas Supreme
Court issued an opinion favorable to the City and remanded to the Court of Appeals which
has requested briefing; oral argument was April 13 , 2021; and
WHEREAS, the City, on August 18 , 2015 hired the Law Firm of Kelly Hart &
Hallman, LLP, as outside counsel to provide legal representation regarding any lawsuit
filed challenging the City's game room ordinances ; and
WHEREAS, to date, the cost of legal services by Kelly Hart & Hallman , LLP, as
outside counsel to provide legal representation regarding any lawsuit filed challenging the
City's game room ordinances , has been approximately $507,454.23; and
WHEREAS, the subject litigation is still pending and it is estimated that an
additional amount of approximately $20,000.00 beyond the current authorized $520,000.00
will be needed for the legal services necessary to bring these lawsuits to a successful
conclusion.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
That the compensation authorized to be paid to the Law Firm of Kelly Hart &
Hallman , LLP, as outside counsel, to provide legal representation regarding any lawsuit
filed challenging the City's game room ordinances , is hereby increased from $520,000.00
to an amount not to exceed $540,000.00.
Adopted this 20 1h day of April 2021.
ATTEST:
By:~9~
Mary J. Kayser , City Secretary
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/20/21 M&C FILE NUMBER: M&C 21-0298
LOG NAME: 12GAMEROOM ADDL FUNDS APRIL 2021
SUBJECT
(ALL) Adopt Attached Resolution Authorizing an Increase of $20 ,000.00 in the Total Amount to be Paid to the Law Firm of Kelly Hart & Hallman,
LLP , as Outside Legal Counsel for Legal Matters Relating to Lawsuits Challenging the City's Game Room Ordinances for a Total Amount of
$540 ,000 .00
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution authorizing an increase in the amount of $20 ,000 .00 to the maximum amount
to be paid to the law firm of Kelly Hart & Hallman , LLP, as outside legal counsel for legal services related to lawsuits challenging the City's Game
Room Ordinances , for a total amount of $540,000.00 .
DISCUSSION:
On August 18, 2015 , by Mayor and Council Communication M&C G-18529 and Resolution No. 4501-08-2015 , the City Council approved the Law
Firm of Kelly Hart & Hallman , LLP , as legal counsel to provide legal representation regarding any lawsuit filed challenging the City's game room
ordinances. The City has been sued in three separate lawsuits challenging the City's new game room ordinances. The three separate lawsuits are
as follows : Cause No. 48-276440-15, Apolonia Garcia, et ux. v. City of Fort Worth , Cause No . 17-276483-15, Jack Davis, et al. v. City of Fort
Worth and Cause No . 352-276568-15 , AFAD Investments, Inc. v. City of Fort Worth. In 2017 , the Court entered a judgment in the Davis litigation.
Both parties filed an appeal and the Second Court of Appeals issued its opinion in October, 2018. The City and Plaintiffs filed petitions for review
in the Texas Supreme Court. The Texas Supreme Court issued an opinion favorable to the City and remanded to the Court of Appeals which has
requested briefing . Because of the complex nature of the litigation and the importance to the City , the City hired the Law Firm of Kelly Hart &
Hallman , LLP, to represent the City in any litigation related to the game room ordinances .
On May 3 , 2016 , by Mayor and Council Communication M&C G-18724 and Resolution No . 4621-05-2016, the City Council approved an additional
$100,000.00 beyond the original $100 ,000.00 for a total of $200 ,000.00 to represent the City in this litigation.
On February 21, 2017, by Mayor and Council Communication M&C G-18949 and Resolution No . 4746-02-2017, the City Council approved an
additional $100 ,000.00 for a total of $300 ,000 .00 to represent the City in this litigation.
On September 19, 2017, by Mayor and Council Communication M&C G-19097 and Resolution No. 4844-09-2017, the City Council approved an
additional $50 ,000 .00 for a total of $350 ,000.00 to represent the City in this litigation.
On June 5 , 2018 , by Mayor and Council Communication M&C G-19288 and Resolution No . 4941-06-2018, the City Council approved an
additional $10 ,000 .00 for a total of $360 ,000.00 to represent the City in this litigation.
On January 9, 2019 , by Mayor and Council Commun ication M&C G-19453 and Resolution No . 5033-01-2019, the City Council approved an
add itional $50 ,000 .00 for a total of $410 ,000.00 to represent the City in this litigation.
On December 17 , 2019 , by Mayor and Council Communication M&C 19-0407 and Resolution No. 5170-01-2019, the City Council approved an
additional $20,000.00 for a total of $430 ,000 .00 to represent the City in this litigation .
On April 7 , 2020 , by Mayor and Council Communication M&C 20-0212 and Resolution No . 5208-04-2020, the City Council approved an additional
$40 ,000.00 for a total of $470 ,000.00 to represent the City in this litigation .
On October 27 , 2020, by Mayor and Council Communication M&C 20-0815 and Resolution No. 5293-10-2020, the City Council approved an
additional $50 ,000.00 for a total of $520 ,000 .00 to represent the City in this litigation.
The litigation is still pending and it is estimated that an additional amount of approximately $20 ,000.00 beyond the current authorized $520,000 .00
will be needed for the legal services necessary to bring these lawsuits to a successful conclusion.
Adoption of this Resolution will increase the amount of compensation to be paid to the Law Firm of Kelly Hart & Hallman , LLP , by $20 ,000.00, for a
total amount of $540,000 .00 .
A Form 1295 is not required because : This M&C does not request approval of a contract with a business entity .
FISCAL INFORMATION/ CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated , in the Risk Financing Fund to
support the approval of the above recommendation and adoption of the resolution. Prior to any expenditure being incurred , the Legal
Department has the responsibility to validate the availability of funds .
Submitted for City Manager's Office by: ALL ACMs 6222
Originating Business Unit Head: Sarah Fullenwider 7623
Additional Information Contact: Sarah Fullenwider 7623