Fiscal Note
The proposed resolution authorizes outside counsel to represent the City on a contingency fee basis. The outside counsel will be paid through any awarded amounts. Any expenses incurred by the City are expected to be covered with existing budget authority. No additional City appropriation required.
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Authorizing the City to retain outside counsel on noncompetitive basis to represent its interest in filing suit against Kia and Hyundai for their role in creating a public nuisance.
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Authorizing the City to retain outside counsel on noncompetitive basis to represent its interest in filing suit against Kia and Hyundai for their role in creating a public nuisance.
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WHEREAS, the number of Kias and Hyundais stolen in Madison dramatically increased in 2022; and
WHEREAS, 45% of vehicles stolen in Madison in July and August of 2022 were Kias and Hyundais; and
WHEREAS, there was a 270% increase in the number of stolen Kias and Hyundais in the summer of 2022 compared to 2021; and
WHEREAS, the rate of theft for Kias and Hyundais remains elevated; and
WHEREAS, these thefts are a part of a dangerous social media trend that has individuals targeting certain Kia and Hyundai vehicles manufactured between 2011- 2021; and
WHEREAS, Kia and Hyundai failed to equip vehicles manufactured between 2011- 2021 with industry-standard security features, including engine immobilizers and other anti-theft systems, which could have helped prevent the thefts; and
WHEREAS, the dramatic increase in Hyundai and Kia thefts constitutes a substantial threat to public health and safety; and
WHEREAS, the rise in the thefts of Kias and Hyundais has caused the City to expend more resources to investigate the thefts, respond to criminal activity related to the thefts, and assess associated property destruction, all at the increased expense of taxpayers; and
WHEREAS, there is a pending multi-district litigation in the Central District of California regarding the Kia and Hyundai theft litigation; and
WHEREAS, Gretchen Freeman Cappio of Keller Rohrback LLP has been appointed as the Chair and, to date, sole member of the Governmental Entities Committee in that litigation; and
WHEREAS, the Order appointing Ms. Cappio Chair of the Governmental Entities Committee contemplates additional individual Governmental Entity complaints to be filed by March 27, 2023; and
WHEREAS, the City will join other affected cities by filing suit against Kia and Hyundai in order to abate the public nuisance and recover the costs sustained by the City in responding to the rise in thefts; and
WHEREAS, Keller Rohrback LLP and its Wisconsin local counsel, MWH Law Group, have the requisite specialized knowledge and expertise having previously represented government agencies in public nuisance lawsuits; and
WHEREAS, under MGO Sec. 4.26(4)(a)3, the City may retain services of outside counsel without competitive bids; and
WHEREAS, Keller Rohrback LLP and MWH Law Group have agreed to represent the City of Madison on a contingency fee basis;
NOW, THEREFORE, BE IT RESOLVED that the City hereby agrees to retain the firms of Keller Rohrback LLP and MWH Law Group to assist the City Attorney’s Office in representing the City’s interest in the Kia and Hyundai theft litigation; and
BE IT FINALLY RESOLVED that the City Attorney will review and execute a retainer agreement with Keller Rohrback LLP and MWH Law Group on the terms approved by the City Attorney.