FOR IMMEDIATE RELEASE
August 17, 1999
Contact: Diane Thomas
714.834.6203
Board of Supervisors
Oppose Attorney ‘Bonus’
(Santa Ana) - The Orange
County Board of Supervisors unanimously agreed this morning
to oppose the additional fees being requested by the law
firm of Hennigan, Mercer & Bennett that handled bankruptcy-related
litigation for the County investment pool.
"As a member of the pool and, therefore, a client
of Hennigan, Mercer & Bennett, we want to join with
other pool members to vigorously oppose this grab for
additional fees," said Charles V. Smith, Board Chairman.
"The law firm did an excellent job for us and we’re
entirely pleased with their performance. But they’ve
already been well compensated with approximately $26 million.
To ask for $48.7 million on top of that is unreasonable.
"My colleagues on the Board of Supervisors join me
in asserting that the cities, schools, special districts,
the County, and other agencies that are members of the
investment pool have fiscal responsibilities to our constituents
to safeguard taxpayer dollars," said Tom Wilson,
Board Vice Chairman. "We can’t let this request
go unchallenged."
Tom Hayes was named in the bankruptcy recovery plan as
the investment pool’s independent representative
regarding all litigation resulting from the bankruptcy.
He negotiated the contract with Hennigan, Mercer &
Bennett for legal representation against firms that had
roles leading to the bankruptcy. Hayes has rejected the
request by Hennigan, Mercer & Bennett.
Legal