HomeMy WebLinkAboutResolution 4388-12-2014 t
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A Resolution
NO. 4388-12-2014
AMENDING RESOLUTION NO. 4376-11-2014 RETAINING THE LAW
FIRM OF WHITAKER, CHALK, SWINDLE & SCHWARTZ PLLC, AS
OUTSIDE LEGAL COUNSEL, FOR LEGAL SERVICES RELATED TO
CAUSE NO. 6:14-ev-00725, 3rd EYE SURVEILLANCE LLC, V. CITY OF
FORT WORTH TEXAS, FILED IN UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS, TYLER DIVISION
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WHEREAS, the City of Fort Worth periodically requires legal advice regarding
intellectual property related matters; and
WHEREAS, a specific need has arisen to defend the City in a lawsuit filed by 3rd Eye
Surveillance LLC, alleging patent infringement against the City (the Lawsuit); and
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WHEREAS, the law firm of Whitaker, Chalk, Swindle & Schwartz PLLC i
(Whitaker Chalk), has expertise in the field of patent law and has defended numerous
patent infringement lawsuits; and
WHEREAS, pursuant to Resolution No. 4376-11-2014, the City previously
engaged Whitaker Chalk as outside legal counsel, with all legal fees to be paid by e-
Watch Corporation pursuant to City Secretary Contract No. 45257 (the Contract); and
WHEREAS, it has now become necessary for the City to pay legal costs and filing
fees to ensure that the City has proper representation in the lawsuit.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE,
CITY OF FORT WORTH, TEXAS: j
That Resolution 4376-11-2014 authorizing the engagement of Whitaker, Chalk,
Swindle & Schwartz, PLLC as outside legal counsel to provide legal services to the City
Attorney's Office related to the lawsuit filed by 3rd Eye Surveillance, LLC alleging
patent infringement, be amended to designate in advance, as far as practicable, an
amount to be paid to Whitaker, Chalk, Swindle & Schwartz, PLLC, not to exceed i
$250,000.00, inclusive of filing fees, in accordance with Chapter V1, Section 3 of the `
City Charter.
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That the City Counci� hereby ratifies Amendment No. 2 to City Secretary Contract
No. 45257 authorizing the City to assume control of the Lawsuit.
Adopted this 91h day of December, 2014.
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City of Fort Worth, Texas j
Mayor and Council Communication
;' COUNCIL:ACTION:�Approved on 12/9/2014 -'Resolution No: 4388=12-2014 � I
DATE: Tuesday, December 09, 2014 REFERENCE NO.: G-18378
LOG NAME: 12AMEND PATENT INFRINGEMENT
SUBJECT: i
Adopt Resolution Amending Resolution No. 4376-11-2014 to Set the Legal Fees, Inclusive of Required
Filing Fees, for the Law Firm of Whitaker, Chalk, Swindle & Schwartz PLLC, as Outside Legal Counsel, in
an Amount Not to Exceed $250,000.00, for Legal Services Related to Cause No. 6:14-CV-00725, 3rd Eye
Surveillance, LLC, v. City of Fort Worth, Texas, Filed in the United States District Court for the Eastern I
District of Texas, Tyler Division and Ratify Amendment No. 2 to City Secretary Contract No. 45257 (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council approve the attached Resolution: j
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1. Amending Resolution No. 4376-11-2014 to set the Legal Fees, Inclusive of Required Filing Fees, for
the Law Firm of Whitaker, Chalk, Swindle & Schwartz PLLC, as Outside Legal Counsel, in an Amount Not 1
to Exceed $250;000.00, for Legal Services Related to Cause No. 6:14-CV-00725, 3rd Eye Surveillance,
LLC, v. City of Fort Worth, Texas, Filed in the United States District Court for the Eastern District of Texas
(the Lawsuit), Tyler Division, pursuant to Chapter VI, Section 3 of the City Charter; and i
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2. Ratifying Amendment No. 2 to City Secretary Contract No. 45257 authorizing the City of Fort Worth to
assume control of the related Lawsuit.
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DISCUSSION:
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On December 31, 2013, the City of Fort Worth (City) entered into City Secretary Contract No. 45257 (the
Contract), a Professional Services Agreement with e-Watch Corporation (e-Watch)to provide software
licensing, implementation services, end-user training and annual maintenance for a Consolidated Video
Security System (CVSS) for the Fire Department. On August 29, 2014, the City was served with a lawsuit j
by 3rd Eye Surveillance, LLC, alleging patent infringement against the City for use of the e-Watch CVSS
under the Contract. 1
Pursuant to the Contract, the City is entitled to indemnification and defense of the claim from e-Watch,
with e-Watch being obligated to pay legal fees, having the right to hire and select legal counsel, and make
decisions concerning the Lawsuit. However, it has become necessary for the City to pay the legal costs
related to the Lawsuit. To protect the City's interest in this matter, this M&C requests ratification of an
amendment to the Contract authorizing the City to assume control of the Lawsuit, and authorization to set
an amount for legal fees, inclusive of filing fees in amount not to exceed $250,000.00, to ensure the City
has appropriate representation in the Lawsuit. Pursuant to Chapter VI, Section 3 of the City Charter, the
City Council must take formal action to set an amount for legal fees to be paid to Whitaker, Chalk, Swindle ,I
& Schwartz, PLLC, as outside legal counsel for the Lawsuit.
Pursuant to the Contract, a-Watch is still obligated to indemnify and reimburse the City for payment for all
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Page Logname: 12AMEND PATENT INFRINGEMENT Pa e 1 of 2
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costs and legal fees to defend the suit, and any settlement amount or judgment amount that may be
entered against the City.
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FISCAL INFORMATION /CERTIFICATION: `
The Fiscal Year 2015 budget included appropriations of$600,000.00 in the Risk Management Fund for
this purpose. To date, $89,502.00 of those appropriations have been expended. Upon approval of this
recommendation, the Financial Management Services Director certifies that funds are available within the
existing appropriations for this expenditure.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
FE71 534060 0137120 $250.000.00 1
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CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Sarah J. Fullenwider (7606)
Additional Information Contact:
Maleshia B. Farmer (7887)
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Logname: 12AMEND PATENT INFRINGEMENT Page 2 of 2