11-17-2020 - AGENDA ITEM 04 CONSIDERATION OF ENGAGEMENT OF RONALD P. SLATES IN CONNECTION WITH WEST COVINA V. BOB'S TOWING SERVICES MATTERAGENDA ITEM NO.4
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: November 17, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF ENGAGEMENT OF RONALD P. SLATES IN CONNECTION
WITH WEST COVINA V. BOB'S TOWING SERVICES MATTER
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to negotiate and execute any documents
necessary for the continued engagement of Ronald P. Slates, a Professional Corporation, to provide legal
services to the City in connection with the West Covina v Andar Al-Badawi et al. (Bob's Towing
Services) matter.
BACKGROUND:
On or about November 26, 2019, the City Manager entered into an Attorney -Client Retainer Agreement with
Ronald P. Slates, a Professional Corporation, for the firm to provide legal services to the City in connection
with the City of West Covina v Andar Al-Badawi et al. (Bob's Towing Services) matter.
Staff now seeks City Council authorization for the City Manager to negotiate and execute any documents
necessary for the continued engagement of Ronald P. Slates in connection with the litigation.
DISCUSSION:
Ronald Slates is the lead attorney representing the City in the Bob's Towing Services matter. Mr. Slates has
extensive experience handling commercial debt collection matters.
OPTIONS:
The City Council has the following options:
1. Approve staffs recommendation; or
2. Provide alternative direction.
Prepared by: Thomas P. Duarte, City Attorney
Fiscal Impact
FISCAL IMPACT:
Pursuant to the Retainer Agreement, the firm is paid the following hourly rates, reduced by 75%:
the Central District of California, or the U.S. Bankruptcy Court for the Central District of
California. This venue clause is a mandatory venue clause. It is not a permissive venue clause.
Any dispute between the parties as to attorney fees and/or costs charged under this
Agreement shall be resolved as follows: If a fees and/or costs dispute arises, Attorney will
provide CLIENT with written notice of CLIENT'S right to arbitrate under the California State
Bar Act (Bus.&Prof.C. §6200 et seq.). CLIENT and Attorney may thereafter agree that the
arbitration will be binding or non -binding. CLIENT may request fee Arbitration by contacting
the Los Angeles County Bar Association's Fee Arbitration Program Administrator at 213-896-
6426 or the State Bar's website at www.calbar.ca.gov.
Any other dispute arising under this Agreement or in connection with the provision of
legal services by Attorney, including, without limitation, any claim for breach of contract,
professional negligence or breach of fiduciary duty shall be brought in the Los Angeles Superior
Court with venue in the Central District of Los Angeles.
THE CLIENT DECLARES AND REPRESENTS THAT HE, SHE AND/OR IT HAS HAD
FULL, AMPLE AND ADEQUATE OPPORTUNITY TO REVIEW AND GIVE
CONSIDERATION TO THE TERMS OF THIS RETAINER AGREEMENT, BY
PLACING THE SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE WHERE
INDICATED ON THIS RETAINER AGREEMENT, CLIENT REPRESENTS TO
ATTORNEYS THAT CLIENT HAS READ, UNDERSTOOD AND AGREED TO EACH
AND ALL OF THE TERMS AND CONDITIONS OF SUCH EMPLOYMENT.
No attorney -client relationship shall be established until this Agreement has been signed
by both parties.
Dated: 1 3 -2D CITY OF WEST COVINA (Client)
By:
Name: DavicqCarmany
City Manager,
Authorized Representative of Client
Dated: —1— 3 — 02 O
• Ronald P. Slates - $595.00/hour
• Senior Attorneys/"Of Counsel' Attorneys - $550.00/hour
• Associate Attorneys- $495.00/hour
• Senior Paralegals - $395.00/hour
• Paralegals - $295.00/hour
The firm will also receive 39% of any monies collected as a result of the litigation. The retainer fees will be
charged to account number 110. 11. 1140.6111.
Attachments
Attachment No. 1 - Ronald Slates Attorney Retainer 2
Attachment No. 1
ATTORNEY -CLIENT RETAINER AGREEMENT
(HYBRID)
We appreciate the opportunity to act as your lawyers. The purpose of this Retainer
Agreement is to set forth the basic terms of this engagement, including the anticipated scope of
services and billing practices.
Client Name: Citv of West Covina
Client Address: 1444 West Garvey Ave.
West Covina, CA 91790
Client Phone: (626) 939-8401
Client Fax:
Principal Contact:
Contact Address:
Contact Phone:
Contact Cell:
Contact E-Mail:
Drivers License No.
Date of Birth
David Carmany, City Manager
1444 W. Garvey Ave S, West Cova, CA
714-446-1400 x.242 Bruce
bal@jones-mayer.com Bruce A. Lindsay, referring attorney
State
Social Security No.
I. the CLIENT herewith retain RONALD P. SLATES, P.C. ("Attorneys"), as CLIENT'S
ATTORNEY AT LAW to represent CLIENT in: its claim against Bob's Towing Services and
Recovery Inc., Safeway Towing Service, Inc., Bandar AI-Badawi and Omaymah El Kurdi
LASC
(Court With Jurisdiction)
and any subsequent matters referred to Attorney.
Statute of Limitations (if any):
19STCV 17274
(Case No.)
This Retainer Agreement does NOT include the representation of CLIENT with respect to
any other matter except as specifically specified herein. Further, this Retainer does not provide
for services to be rendered with respect to any writs, appellate court proceedings, pre-trial appeals,
post -trial appeals, post -judgment enforcement and post judgment remedies on any such judgment
or the taking or filing of any appeal from a final order or judgment, without the prior and further
written understanding and agreement between Attorneys and CLIENT.
CLIENT(s) is/are aware that this agreement involves a contingent fee and that contingent
fee agreements are subject to California Business and Professions Code § 6147, a copy of which
is attached hereto, unless Attorney is herein retained to represent CLIENT(s) in an action for
professional negligence against a health care provider. As required by California Business and
Professions Code § 6147 (a) (4), CLIENT(s) acknowledge(s) awareness that this contingent fee is
not set by law and was negotiable and has in fact been negotiated between CLIENT(s) and
Attorney.
II. In addition to the contingent fee agreed upon as set forth herein below, CLIENT
promises, agrees to and shall pay and be responsible for payment of all costs billed and/or advances
made on behalf and for the benefit of CLIENT. Such costs include, but are not limited to, filing
and service fees, court reporter and deposition transcript costs, messenger costs, postage costs,
photocopy costs, telephone and fax costs, and investigator fees, any other costs advanced by
Attorney, and said costs shall be deducted from the recovery or settlement, if not paid for sooner
by CLIENT(s). However, Attorney shall have no obligation hereunder to advance said costs.
CLIENT(s) and Attorney have agreed that the compensation and remuneration that CLIENT(s)
shall pay to Attorney as his fee are as follows:
Attorney shall reduce his hourly rates (which presently are Managing Attorney Ronald P. Slates -
$595.00 per hour; Senior Attorneys and "Of counsel" - $550.00 per hour; Associate Attorneys -
$495.00 per hour; Senior Paralegal - $395.00 per hour; Paralegal - $295.00 per hour; and In-house
Investigator/ Registered Process Server Carl Knapp - $225.00 per hour by SEVENTY-FIVE
PERCENT (75%) AND RECEIVE THIRTY-NINE PERCENT (39%) OF ANY AND ALL
(GROSS) MONIES COLLECTED plus costs.
(CI n1E t Initials)
Initial and Continuing Retainer
CLIENT agrees to compensate Attorneys by means of an Initial Retainer and a Continuing
Retainer. CLIENT agrees to pay Attorneys a retainer in the amount of $0.00 ("the Initial
Retainer") concurrently with the execution of this Agreement, which Attorneys shall deposit into
a Client Trust Account. Any sums for which CLIENT is liable or becomes liable to Attorneys
may be paid to Attorneys out of the Initial Retainer and Continuing Retainer funds (together, "the
Retainer"). At any time that the Retainer drops below the amount of the Initial Retainer, Attorneys
shall have the right to notify CLIENT of the amount of the deficiency and request that CLIENT
pay to Attorneys sufficient funds ("the Continuing Retainer") to bring the amount of the Retainer
on deposit in Attorneys' Client Trust Account back to the amount of the Initial Retainer, as well
as to pay any other obligations owed by CLIENT. The regular monthly bill sent by Attorneys shall
in all events constitute such a request by Attorneys for payment of the Continuing Retainer,
although the monthly bill is not the exclusive means of making such a request. Once CLIENT has
received any request by Attorneys for payment of the Continuing Retainer, CLIENT agrees to
make payment of the amount of the Continuing Retainer within five (5) business days. CLIENT
acknowledges that the purpose of this Retainer arrangement is to ensure that Attorneys are
compensated for work performed on behalf of CLIENT promptly after those services are rendered.
CLIENT further acknowledges that this Retainer arrangement is a highly material inducement by
CLIENT to persuade Attorneys to enter into this Agreement rather than undertaking representation
of other potential clients, and but for the existence of the CLIENT'S agreement to the provisions
in this paragraph, Attorneys would, in all likelihood, decline to undertake the Scope of
Representation described in this Agreement. In the event that Attorneys' representation of
CLIENT terminates for any reason, Attorneys shall be obligated to refund to CLIENT any balance
of the Retainer that remains following the payment of any obligations owed to Attorneys by
CLIENT. This refund must occur by no later than thirty (30) days following the last payment of
any sums owed by CLIENT to Attorneys.
(CLIENT INITIALS)
THERE ARE CERTAIN MINIMUM FEES CHARGED BY ATTORNEYS FOR
SERVICES INCLUDING, BUT NOT LIMITED TO, ONE (1) HOUR FOR EACH
ADVERSARIAL LETTER, THREE (3) HOURS EACH FOR COURT FILED
COMPLAINTS AND/OR ANSWERS, PETITIONS AND/OR RESPONSES, ONE (1)
HOUR FOR ANY OTHER COURT DOCUMENTS AND 2/10THS OF AN HOUR FOR
TELEPHONE CALLS, DEPENDING UPON WHO IS CALLED OR WHO CALLS AND
ONE (1) HOUR INITIAL MATTER ADMINISTRATIVE FEE. THESE MINIMUM
CHARGES ARE MADE EVEN THOUGH THE ACTUAL AMOUNT OF TIME WHICH
IS EXPENDED TO PRODUCE THESE DOCUMENTS AND MAKE THESE PHONE
CALLS MAY BE LESS THAN THE MINIMUM TIME CHARGED.
Additionally, Attorneys' travel time to and from court and/or to and from any other location
in connection with the representation of CLIENT concerning the litigation and the subject matter
hereof are rendered at the hourly rate designated plus costs incurred, such as parking charges, air
fare, hotel charges, and other travel -related expenses.
From time to time, Attorney may offer to CLIENT a "Courtesy Discount," either through an across
the board reduction or by reducing particular billing entries to $0.00 (No Charge). Such Courtesy Discounts
are given at Attorney's discretion and are made under the assumption that CLIENT will remit timely
payment on Attorney's invoices. If CLIENT fails to remit payment timely, or if a dispute arises between
Attorney and CLIENT regarding fees, Attorney may, at Attorney's sole discretion, charge back (or revoke)
any and all said Courtesy Discounts to CLIENT as if said Courtesy Discount had ever been offered to
CLIENT.
CLIENT agrees that in the event that for any reason the undersigned attorney no longer
represents the CLIENT, he shall be entitled to be paid all attorney's fees and costs incurred by him
in the within matter(s) upon a quantum meruit (reasonable value for services) basis. This
contemplates any and all cessation of services by said attorney whether voluntary or involuntary,
and the only prerequisite thereof is that CLIENT be given written notice of said cessation in the
event said services are voluntarily terminated by attorney. Nothing herein shall affect CLIENT(s)'s
or Attorney's rights under the Code of Ethics and the Rules of Professional Conduct, including but
not limited to the right to arbitrate a disputed fee.
LIEN. A LIEN ACTS AS SECURITY FOR PAYMENT DUE TO ATTORNEY BY
CLIENT'S). THIS LIEN COULD DELAY PAYMENTS TO CLIENT(S) UNTIL ANY
DISPUTES OVER THE AMOUNT TO BE PAID TO ATTORNEY ARE RESOLVED.
CLIENT (S) HEREBY GRANTS ATTORNEY A VOLUNTARY, SPECIFIC LIEN FOR
ANY SUMS DUE AND OWING TO ATTORNEY FOR FEES AND COSTS AT THE
CONCLUSION OF ATTORNEY'S SERVICES. ATTORNEY MAY FILE SAID LIEN IN
ANY OTHER PENDING OR FUTURE ACTION OF CLIENT(S) WITHOUT THE NEED
OF FILING A SEPARATE CLAIM OR LAWSUIT, AND ATTORNEY SHALL ALSO
HAVE LIENS KNOWN TO THE COMMON LAW WHETHER OR NOT FILED. SAID
LIEN MAY NOT BE AVOIDED IN BANKRUPTCY BY CLIENTS) OR ANYONE
TAKING ON HIS BEHALF BECAUSE IT IS VOLUNTARY. SAID LIEN WILL
ATTACH TO ANY AND ALL REAL OR PERSONAL PROPERTY OF CLIENT'S,
INCLUDING ANY RECOVERY CLIENTS) MAY OBTAIN, WHETHER BY
ARBITRATION AWARD, JUDGMENT, SETTLEMENT OR OTHERWISE, IN THIS
MATTER. CLIENT(S) MAY, AND IN FACT ARE ENCOURAGED, TO SEEK THE
ADVICE OF AN INDEPENDENT LAWYER OF THE CLIENT'S CHOICE ABOUT THIS
LIEN AND THIS MATTER. BY INITIALING THIS PROVISION AND SIGNING THIS
AGREEMENT CLIENTS) ACKNOWLEDGES THAT HE/SHERT HAS/HAVE BEEN SO
ADVISED AND GIVEN A REASONABLE OPPORTUNITY TO SEEK THAT ADVICE.
EXPLAINED, READ AND APPROVED:
(CLIENT INITI S)
CLIENT(s)' signature hereon constitutes consent to (a), (b) and (c) below:
(a) CLIENT(s) recovery will be reduced by the percentage above agreed upon
to be Attorney's fee, and the recovery will be further reduced by any costs and disbursements
which Attorney advanced if not sooner reimbursed by CLIENT(s).
(b) CLIENT(s) shall be obligated to pay Attorney all sums owing under this
retainer agreement promptly upon CLIENT(s) receiving notification of the amount owing, and
Attorney may apply any sums received on CLIENT(s) behalf pursuant to this agreement toward
any other such legitimate debt owing before disbursing the balance to CLIENT(s).
(c) Attorney may retain his agreed upon percentage out of the amount finally
collected in full for his services.
All services rendered and costs incurred will be reflected in a monthly billing invoice
indicating services rendered from on or about the Ist day of the month to or about the last day of
the month. Such billing invoices shall reflect the general description of services rendered and/or
costs incurred, the date of services rendered and/or costs incurred, and the amount allocated to
services rendered and/or costs incurred.
Attorneys represent and warrant to CLIENT that Attorneys shall render the services
herein expediently, diligently and in the pursuit of protecting and enforcing the rights, interests
and remedies of CLIENT. To the extent possible, such services shall be rendered in as expedient
fashion as possible, taking care and consideration of all costs and fees incurred in the rendition of
such services and representations of CLIENT.
III. General Responsibilities of Attorneys and CLIENT. Attorneys will provide services
of a strictly legal nature of the type generally described above. CLIENT will provide Attorneys
with such factual information and materials as Attorneys may require to perform those services
and will make such business or technical decisions and determinations as are appropriate.
Attorneys shall inform CLIENT of any deadlines associated with said decisions. Attorneys will
be relying on the completeness and accuracy of the information provided by CLIENT. It is
understood that CLIENT is not relying on Attorneys for business, investment, or accounting
decisions or to investigate the character or credit of persons with whom CLIENT may be dealing.
Attorneys will keep CLIENT apprised of developments as necessary to perform his services and
will consult with CLIENT as necessary to ensure the timely, effective, and efficient completion
of his work. CLIENT is responsible for being available to communicate with Attorneys. No
dismissal will be made without consent of both parties.
No guarantees, representations, warranties and the like are made as to a particular,
potential or given outcome. CLIENT understands that Attorneys have advised CLIENT of the
risk and various possible conclusions available in litigation and outcome at trial. CLIENT
understands and acknowledges that there are no representations, warranties and/or guarantees
that a given, particular or potential result is expected or will be obtained. Attorneys do represent
to use its best efforts, skill and expertise in representing CLIENT concerning the subject matter
hereof. Payment of fees other than contingent fees incurred does not depend on the achievement
of any specific result nor is it represented that any specific result will be achieved.
CLIENT further understands and agrees that any and all prior understandings, statements,
and/or agreements, whether verbal or in writing, expressed and/or implied, which are not
otherwise set forth herein concerning Attorneys' representation of CLIENT in the litigation is of
no legal force or effect and shall not be binding upon any of the parties.
As an integral part of Attorneys' representation of CLIENT, CLIENT agrees to and shall
provide full cooperation, assistance and aid in connection with providing information,
verification of facts, and otherwise in the pursuit of the claims of CLIENT and in connection
with the representation by Attorneys' of CLIENT.
In the event CLIENT fails to perform in connection with payment for costs incurred
and/or otherwise fails to provide cooperation to Attorneys, CLIENT understands that Attorneys,
at Attorneys' option, may cease to render any further legal services in connection with the
pending representation until financial arrangements are agreed upon or outstanding balances of
costs due are brought current, or such other arrangements acceptable to Attorneys have been
made.
Similarly, in the event of non -cooperation by CLIENT, Attorneys may, at Attorneys'
option, cease to render any further legal services. In the event of either non-payment or
otherwise due to non -cooperation, Attorneys may, at Attorneys' option, seek to withdraw from
further representation concerning the above -referenced legal services. In the event CLIENT fails
to voluntarily permit the withdrawal of Attorneys, and should Attorneys file a motion with the
court seeking such removal and withdrawal as is required under California law, then any and all
Attorneys' fees and costs incurred in the preparation of, filing of, and appearance on such motion
shall be chargeable to and due and owing by CLIENT at the hourly rate charged by Attorneys,
i.e., Managing Attorney Ronald P. Slates - $595.00 per hour; Senior Attorneys "Of counsel" -
$550.00 per hour; Associate Attorneys - $475.00 per hour; Senior Paralegal - $395.00 per hour;
Paralegal - $295.00 per hour; and In-house Investigator/ Registered Process Server Carl Knapp -
$250.00 per hour.
A service charge may be added to all accounts unpaid more than thirty (30) days in the
sum often percent (10%) per annum in the sole discretion of Attorneys and the lesser of that
amount or lawful interest may be requested of any court in collection proceedings, if undertaken.
IV. CLIENT Satisfaction. Attorneys want CLIENT to be satisfied with the services
provided by Attorneys. To promote full and open communication, CLIENT agrees to let
Attorneys know in writing immediately of any concerns CLIENT may have about the way
Attorneys are handling CLIENT's matter. This is much more effective than hearing from
CLIENT at a later time when it may not be possible to take meaningful corrective steps.
V. Privacy Policx. Lawyers, as providers of certain personal services, are required in
some types of matters to inform their clients of their policies regarding privacy of client
information according to the Gramm -Leach Bliley Act. Lawyers have been and continue to be
bound by professional standards of confidentiality that are even more stringent than those
required by the Act. Attorneys collects nonpublic personal information about CLIENT that is
provided fiom CLIENT or obtained by CLIENT'S authorization or consent. Attorneys will not
disclose any personal information about CLIENT or former clients to anyone, except as
expressly or impliedly authorized by CLIENT to enable Attorneys to effectuate the purpose of
this representation, or as permitted or required by law and any applicable ethics rules.
VI. This Retainer Agreement memorializes and represents the entire, full and complete
understanding and agreement between Attorneys and CLIENT. Any and all other
understandings, representations and/or agreements, written or oral, express or implied, are
deemed to have merged with the terms of this Retainer Agreement and only those promises,
covenants and conditions set forth herein are understood to be binding and of full legal force and
effect. Neither Attorneys nor CLIENT shall rely upon any other such representations,
agreements and/or understandings, written or oral, express or implied, which are not otherwise
specifically stated and set forth in this Retainer Agreement.
This Retainer Agreement can only be modified and amended by another agreement in
writing signed by both Attorneys and CLIENT. Any other method to effect a modification
and/or amendment unless in writing signed by Attorneys and CLIENT shall be void and of no
legal force or effect.
The prevailing party in any action or proceeding to enforce any provision of this
agreement, including any action or proceeding commenced by Ronald P. Slates, P.C., to
collect payment of CLIENT'S account, will be awarded attorneys' fees and costs incurred
in that action or proceeding, including, without limitation, the value of the time spent by
Ronald P. Slates, P.C. attorneys, associate attorneys, of counsel attorneys, paralegal
employees, employees and/or independent contractors, to prosecute or defend such an
action (calculated at the hourly rate(s) then normally charged by Ronald P. Slates, P.C. to
clients which it represents on an hourly basis notwithstanding the holding in Trope v. Katz,
11 Cal. 4th 274; 45 Cal. Rptr., 2nd 241 (1995); Lucky United Properties Investment, Inc. v.
Lee, 185 Cal App. 0 125 (2010).
YOU HAVE THE RIGHT TO HAVE AN INDEPENDENT LAWYER OR ANY
OTHER PERSON OF YOUR CHOICE REVIEW THIS ATTORNEY CLIENT
RETAINER AGREEMENT AND GIVE YOU LEGAL AND/OR BUSINESS ADVICE
CONCERNING IT BEFORE YOU SIGN IT.
This Retainer Agreement and its terms shall be equally and fairly interpreted in favor of
and against Attorneys and CLIENT, it being understood and agreed that all parties had an equal
opportunity to negotiate and to provide input in connection with this agreement and its drafting.
This Agreement shall in all respects be interpreted and enforced and governed by the
laws of the State of California applicable to instruments, persons, transactions, entities, and
subject matters, which have legal contracts and relationships solely within the State of
California. The language of this Agreement, and any other documents referred to herein, shall be
construed as a whole according to its fair meaning and not strictly for or against any of the
parties. Venue in any cause of action accruing hereunder shall be in the Los Angeles Superior
Court, Central District in Los Angeles, California, or, if applicable, the U.S. District Court for