Title
Approval of a Resolution Approving the Terms and Conditions of an Attorney Engagement and Contingency Fee Agreement to Pursue the City’s Claims for Opioid Misuse, Abuse and Over-Prescription
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution Approving the Terms and Conditions of an Attorney Engagement and Contingency Fee Agreement and proceed with opioid litigation.
Report
Issue:
Whether to enter into an Attorney Engagement and Contingency Fee Agreement and pursue the City’s claims for opioid misuse, abuse and over-prescription.
Staff Contact:
Mark Barber, City Attorney, 360.753.8338
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The United States and the City of Olympia are currently experiencing an epidemic and public health crisis unlike any seen before due to the misuse, abuse and over-prescription of opioids. As a result of the flood of opioids into this country, cities like Olympia have had to deal with the crippling effects of widespread opioid addiction. The Centers for Disease Control and Prevention (“CDC”) recently estimated that the total economic burden of prescription opioid abuse costs the United States $78.5 billion per year, which includes significantly increased costs for health care and addiction treatment, dramatic increases in strains on human services and the criminal justice systems, as well as substantial losses in work force productivity.
Drug manufacturers of opioids represented to physicians and the public that opioids were safe and effectively treated pain, with a low risk of addiction. However, for many of those prescribed opioids, the consequences have been severe. More than 1,000 people are admitted every day to emergency rooms across the country because of opioid-related abuse. Naloxone, a costly medication used to block and reverse the effects of an opioid overdose, is now routinely carried by law enforcement and EMTs. Further, individuals addicted to opioids, but without a prescription or the resources to obtain them, have turned to heroin, sparking another crisis directly related to the widespread abuse of opioids.
Pharmaceutical manufacturers and others made and continue to make false and misleading statements about the benefits and risks of opioids through a well-funded marketing and advertising scheme to doctors, patients, and the public-including doctors and patients in the City of Olympia-despite knowing there was little to no evidence to support their claims. As a result of these false and misleading statements, Olympia has suffered significant economic damages, including but not limited to costs related to responding to and dealing with opioid-related crimes and emergencies-most notably borne by the Olympia Police and Olympia Fire Departments-and other significant public safety costs.
The law firm of Keller Rohrback, L.L.P. is representing several jurisdictions in Washington State, including Thurston County, in ongoing litigation with respect to potential claims against the manufacturers and wholesalers of prescription opioid painkillers and other related defendants. The attached Attorney Engagement and Contingency Fee Agreement outlines the terms and conditions of Keller Rohrback, L.L.P.’s potential representation of the City of Olympia and pursuing the City’s claims for opioid misuse, abuse and over-prescription.
Neighborhood/Community Interests (if known):
As a result of the conduct of the pharmaceutical manufacturers, the City and the public have been injured in their business and/or property in multiple ways, including but not limited to increased health care costs, increased human services costs, costs related to dealing with opioid-related crimes and emergencies, and other public safety costs. The City and the public are entitled to bring an action for damages, as well as injunctive/equitable relief, costs, and reasonable attorney’s fees.
Options:
1. Approve the resolution approving the terms and conditions of an Attorney Engagement and Contingency Fee Agreement to proceed with opioid litigation.
2. Direct staff to modify the resolution.
3. Do not approve the resolution.
Financial Impact:
To be determined.
Attachments:
Resolution
Attorney Engagement and Contingency Fee Agreement