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HomeMy WebLinkAboutResolution 5984-08-2024A Resolution NO.5984-08-2024 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, Apolonio Garcia, et ux. v. City of Fort Worth, Cause No. 17- 276483-15, Rylie, et al. V. City of Fort Worth, and Cause No. 352-276568-15, AFAD Investments, Inc. v. City of Fort Worth; and WHEREAS, in 2017 the Court entered a judgment in the Rylie 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; the Court of Appeals issued a favorable opinion to the City. The plaintiffs have sought review in the Texas Supreme Court where the case is now pending. 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; 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 $589,700.00; WHEREAS, the subject litigation is still pending and it is estimated that an additional amount of approximately $50,000.00 beyond the current authorized $640,000.00 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 Iegal representation regarding any lawsuit filed challenging the City's game room ordinances, is hereby increased from $590,000.00 to an amount not to exceed $640,000.00. Adopted this I31 day of August 2024. ATTEST: k By: Jannette S. Goodall, City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 08/13/24 M&C FILE NUMBER: M&C 24-0627 LOG NAME: 12GAMEROOM LITIGATION ADDL FUNDS SUBJECT (ALL) Adopt Resolution Authorizing an Increase of $50,000.00 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 $640,000.00 RECOMMENDATION: It is recommended that the City Council adopt the attached resolution authorizing an increase in the amount of $50,000.00 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 $640,000.00. W�l��Y•�L�1+A 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, Apolonio Garcia, et ux. v. City of Fort Worth, Cause No. 17-276483-15, Ryle, et aI. v. City of Fort Wofth and Cause No. 352-276568-15, AFAD Investments, Inc_ v. City of Fort Worth. 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. In 2017, the Court entered ajudgment in the Rylie 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; the Court of Appeals issued a favorable opinion to the City. The Texas Supreme Court has denied Plaintiffs' motion for rehearing leaving in tact the very favorable opionion of the Court of Appeals. Since the initial M&C, City Council has adopted several M&Cs to increase funding for this lawsuit. Adoption of this Resolution will increase the amount of compensation to be paid to the Law Firm of Kelly Hart & Hallman, LLP, by $50,000.00, for a total amount of $640,000.00. Funding is budgeted in the General Operating & Maintenance category in the Risk Financing Fund for the Human Resource Department. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously appropriated, in the Risk Financing Fund. Prior to an expenditure being incurred, the Human Resources Department has the responsibility to validate the availability of funds. Submitted for City na is Office ALL ACMs 6122 Originating Business Unit Head: Leann Guzman 8973 Additional Information_ Contact: Leann Guzman 8973