HomeMy WebLinkAboutAuthority to Represent - Agreement with McHugh Fuller Law AUTI3ORITY TO REPRESENT
RE : Orange County , North Carolina civil suit against those legally responsible for the wrongful
distribution of prescription opiates and dania es caused thereby.
ORANGE COUNTY , NORTH CAROLINA (hereinafter " CLIENT") hereby retains the law firm MCHUGH
FULLER LAW GROUP , PLLC , pursuant to the North Carolina Rules of Professional Responsibility , on a
contingent fee basis , to pursue all civil remedies against those in the chain of distribution of prescription opiates
responsible for the opioid epidemic which is plaguing Orange County, North Carolina, including , but not
limited to , filing a claim for public nuisance to abate the damages caused thereby . Michael Jay Fuller, Jr . ,
Esq . of the law firm MCHUGH FULLER LAW GROUP , PLLC shall serve as LEAD COUNSEL . CLIENT authorizes
lead counsel to employ and/or associate additional counsel , with consent of CLIENT , to assist LEAD COUNSEL in
the just prosecution of the case . CLIENT consents to the participation of the following firms :
GREENE , KETCHUM, FARRELL , BAILEY & TWEEL , LLP
419 1 lth Street
Huntington, West Virginia
LEVIN , PAPANTONIO , THOMAS , MITCHELL , RAFFERTY & PROCTOR, PA
316 South Baylen Street
Pensacola, Florida
BARON & BUDD , PC
3102 Oak Lawn Avenue # 1100
Dallas , Texas
HILL PETERSON CARPER BEE & DEITZLER PLLC
500 Tracy Way
Charleston , West Virginia
MCHUGH FULLER LAW GROUP
97 Elias Whiddon Rd
Hattiesburg , Mississippi
POWELL & MAJESTRO , PLLC
405 Capitol Street, Suite P - 1200
Charleston , West Virginia
DONALD R . VAUGHAN AND ASSOCIATES
612 W . Friendly Avenue
Greensboro , North Carolina
PINTO , COATES , KYRE & BOWERS , PLLC
3203 Brassfield Road
Greensboro , North Carolina
GEORGE B . DANIEL, P . A .
139 E . Main Street
Yanceyville , North Carolina
In consideration , CLIENT agrees to pay twenty- five percent (25 % ) of the total recovery (gross) in favor
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of the CLIENT as an attorney fee whether the claim is resolved by compromise , settlement, or trial and verdict
( and appeal ) . The gross recovery shall be calculated on the amount obtained before the deduction of costs and
expenses . CLIENT grants Attorneys an interest in a fee based on the gross recovery . If a court awards attorneys '
fees , Attorneys shall receive the " greater of" the gross recovery - based contingent fee or the attorneys ' fees
awarded . There is no fee if there is no recovery.
MCHuGH FULLER LAw GROUP , PLLC and the other law firms , hereinafter referred to as the "Attorneys , "
agree to advance all litigation expenses necessary to prosecute these claims . All such litigation expenses ,
including the reasonable internal costs of electronically stored information (ESI) and electronic discovery
generally or the direct costs incurred from any outside contractor for those services , will be deducted from any
recovery after the contingent fee is calculated , There is no reimbursement of litigation expenses if there is
no recovery.
The CLIENT acknowledges this fee is reasonable given the time and labor required, the novelty and
difficulty of the questions involved, and the skill requisite to perform the legal service properly, the likelihood
this employment will preclude other employment by the Attorneys , the fee customarily charged in the locality
for similar legal services , the anticipated (contingent) litigation expenses and the anticipated results obtained ,
the experience , reputation , and ability of the lawyer or lawyers performing the services and the fact that the fee
is contingent upon a successful recovery .
This litigation is intended to address a significant problem in the community . The litigation focuses on
the manufacturers and wholesale distributors and their role in the diversion of millions of prescription opiates
into the illicit market which has resulted in opioid addiction, abuse , morbidity and mortality . There is no easy
solution and no precedent for such an action against this sector of the industry . Many of the facts of the case are
locked behind closed doors . The billion dollar industry denies liability . The litigation will be very expensive
and the litigation expenses will be advanced by the Attorneys with reimbursement contingent upon a successful
recovery . The outcome is uncertain, like all civil litigation , with compensation contingent upon a successful
recovery . Consequently, there must be a clear understanding between the CLIENT and the Attorneys regarding
the definition of a " successful recovery . "
The Attorneys intend to present a damage model designed to abate the public health and safety
crisis . This damage model may take the form of money damages or equitable remedies ( e . g . , abatement
fund ) . The purpose of the lawsuit is to seek reimbursement of the costs incurred in the past fighting the opioid
epidemic and /or to recover the funds necessary to abate the health and safety crisis caused by the unlawful
conduct of the manufacturers and wholesale distributors . The CLIENT agrees to compensate the Attorneys ,
contingent upon prevailing, by paying 25 % of any settlement/resolution/judgment , in favor of the CLIENT,
whether it takes the form of monetary damages or equitable relief. For instance , if the remedy is in the form of
monetary damages , CLIENT agrees to pay 25 % of the gross amount to Attorneys as compensation and then
reimburse the reasonable litigation expenses . If the remedy is in the form of equitable relief (e . g . , abatement
fund) , CLIENT agrees to pay 25 % of the gross value of the equitable relief to the Attorneys as compensation and
then reimburse the reasonable litigation expenses . To be clear, Attorneys shall not be paid nor receive
reimbursement from public funds , However , any judgment arising from successful prosecution of the case , or
any consideration arising from a settlement of the matter, whether monetary or equitable , shall not be
considered public funds for purposes of calculating the contingent fee . Under no circumstances shall the
CLIENT be obligated to pay any Attorneys fee or any litigation expenses except from moneys expended by
defendant (s) pursuant to the resolution of the CLIENT ' s claims . If the defendant( s) expend their own resources
to abate the public health and safety crisis in exchange for a release of liability, then the Attorneys will be paid
the designated contingent fee from the resources expended by the defendant( s ) . CLIENT acknowledges this is a
necessary condition required by the Attorneys to dedicate their time and invest their resources on a contingent
basis to this enormous project , If the defendant(s) negotiate a release of liability, then the Attorneys should be
compensated based upon the consideration offered to induce the dismissal of the lawsuit . The foregoing
notwithstanding, Client shall not be obligated to pay any attorney fees and/or litigation expenses in any way
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related to this litigation except from funds furnished by Defendants .
The division of fees , expenses and labor between the Attorneys will be decided by private agreement
between the law firms and subject to approval by the CLIENT . Any division of fees will be governed by the
North Carolina Rules of Professional Conduct including ; ( 1 ) the division of fees is in proportion to the services
performed by each lawyer or each lawyer assumes joint responsibility for the representation and agrees to be
available for consultation with the CLIENT; (2 ) the CLIENT agrees to the arrangement, including the share each
lawyer will receive , and the agreement is confirmed in this writing ; and (3 ) the total fee is reasonable .
LEAD COUNSEL shall appoint a contact person to keep the CLIENT reasonably informed about the status
of the matter in a manner deemed appropriate by the CLIENT . The CLIENT at all times shall retain the authority
to decide the disposition of the case and maintain absolute control of the litigation .
Upon conclusion of this matter, LEAD COUNSEL shall provide the CLIENT with a written statement stating
the outcome of the matter and, if there is a recovery , showing the remittance to the client and the method of its
determination . The closing statement shall specify the manner in which the compensation was determined
under the agreement, any costs and expenses deducted by the lawyer from the judgment or settlement involved,
and , if applicable, the actual division of the lawyers ' fees with a lawyer not in the same firm , as required in Rule
1 . 05 ( e) (3 ) of the North Carolina Rules of Professional Conduct . The closing statement shall be signed by the
CLIENT and each attorney among whom the fee is being divided .
Nothing in this Agreement and nothing in the Attorneys ' statement to the CLIENT may be construed as a
promise or guarantee about the outcome of this matter. The Attorneys make no such promises or guarantees .
Attorneys ' comments about the outcome of this matter are expressions of opinion only and the Attorneys make
no guarantee as to the outcome of any litigation , settlement or trial proceedings .
SIGNED , this day of 2018 .
On Behalf f th re County Board of Commissioners
fG
i Mark orosin , air
ISL L , •, ,;; ' Atdy ;
n a��`>/ ofit a Doi na Baker, Clerk to the Board
This instrument s I piea edited in the manner required by the Local Government Budget and Fiscal
Control Act :
Orange Count C iefTIffficial Officer
Accepted .
McHUGii FULLER LAw GROUP , PLLC
97 Elias Whiddon Rd
Hattiesburg , MS 39402
(601 ) 261 - 2220
By
Mlchae 1 r . , Esq . Date
Lead na . Vel
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