HomeMy WebLinkAbout4497
+--------------------------------------------------------------------------+
+press Esc Key to Insert new record, Ctrl-Z to Clear form +
+Press Del Key to Terminate Insert Mode +
INSERT Contract Maintenance +
Contract Number 4497 +
+
+
+
::Vendor Name
: :Subj ect
: :Department
+Status Code
+
+
+
Press Fl for
valid insurance
type codes
J:
-,-
+
Comments
MONTGOMERY PURDUE BLANKINSHIP
REPRESENTATION - FEES & COSTS
LEGAL
LGL
& AUSTIN PLLC
- KPS SALE
+
08/09/2005 .':
08/31/2005
02/15/2007 -.-
+
+
+
+
+
+
$0.00
-.-
+
+--------------------------------------------------------------------------+
Insurance
Type Amount
Amount
Begin Date
End Date
Review Date
Insurance Total
Insurance Review Date
VAULT 01/01/2007
MONTGOMERY PURDUE BLANKINSHIP & AUSTIN PLLC
.w
MPBA
5500 BANK OF AMERICA TOWER
701 FIFTH AVENUE
SEATTLE, WA 98104-7096
(206) 682-7090 TEL
(206) 625-9534 FAX
Attorneys/Seattle
SCOTT B. EASTER
VMAIL (:;06) 682-7097 EXT. 177
easter@mpba.com
August 8, 2005
ADVANCE COPY VIA F ACSIMILE/
ORIGINAL MAILED
Roger A. Lubovich
City Attorney
City ofBremerton
345 Sixth St., Ste. 600
Bremerton, VVA 98337-1873
Re: Legal Representation, Fees and Costs
Dear Roger:
Mike Gossler and I enjoyed meeting with you and members of your staff on VVednesday,
June 29, 2005, and appreciate the decision by the City of Bremerton ("the City") to retain us to
assist in connection with the Kitsap Physician's Services ("KPS") matter, and our various
discussions with you since that time. VV e understand that you share common concerns with
Kitsap County Medical Society and Kitsap County regarding the proposed acquisition ofKPS by
Group Health, and that we also have been asked by those persons to represent their interests. We
submit to you this engagement letter to set forth the terms and conditions of our employment and
our conflicts waiver.
Conflict Disclosure and Consent to Continuing Representation. As I believe Timothy
Parker communicated to you, my partner Mike Gossler and I met with Tim on Wednesday, June
22, 2005, to discuss the possibility of our firm substituting in for Tim's firm on this matter, due
to Group Health's refusal to consent to his firm's continued involvement on behalf of the City
and Kitsap County Medical Society. We subsequently met with you and members of your staff
on June 29,2005.
We indicated that we were willing to take the matter on, subject to the City's consent and
waiver of any conflicts in connection with our law firm's pre-existing and ongoing
representation of the Bremerton Housing Authority ("BRA"). While that is an unrelated matter,
my partner Bill Goodwin indicates that the City is contemplating action that would result in the
abolition of the BHA. Should that occur, and if the BHA Board decides to resist that action, it is
conceivable that litigation could ensue between the BHA and the City. I f that occurs, our film
will be representing the BHA and therefore will be adverse to the City of Bremerton with respect
to that unrelated matter.
MONTGOMERY PURDUE BLANKINSHIP & AUSTIN PLLC
Roger A. Lubovich
August 9,2005
Page 2
VVe have disclosed this potential conflict to both you and BHA and requested each client
consent to this potential dual role, waive any potential conflicts of interest, and consent to our
firm continuing as counsel for BHA. We do not believe that this representation will adversely
affect the relationship with either client or that it will materially limit our representation of either
client. Obviously, if at any time in the future we determine that out ability to act as zealous
advocates for each client is compromised, or for any other reason it is not appropriate to continue
representation for either client, we will notify each of you and take appropriate action, which
likely would be withdrawing from the KPS rnatter and continuing on with the BHA
representation, assuming ethical rules permit it.
Needless to say, we advise and encourage the City to seek the advice of independent
counsel in making this decision. Assuming the City consents to waiver of actual or potential
conflicts, please signify by your signature and that of the Mayor, on the extra copy of this letter,
and fax and mail the executed copy back to us.
Similarly, you have indicated that the Kitsap County Medical Society and Kitsap County
also wish to join in and participate with the City of Bremerton in its discovery of the basis for the
proposed sale and the details on the proposed transaction, and depending on what is discovered,
in opposing the proposed sale. The City, the Medical Society and Kitsap County each share a
common interest in seeing that keep KPS remain a viable independent provider of medical
insurance within the city of Bremerton, Kitsap County and the greater Kitsap Peninsula. As
such, you have represented to us that neither the City, Kitsap County nor the Kitsap County
Medical Society believe there to be any adverse interest among them, and by their signature
below they waive any potential conflict of interest. By signing below, the City, Kitsap County
and the Kitsap County Medical Society confirm they have been advised of their right to obtain
the advice of independent counsel in making this decision to waive any potential conflicts, and
that they do so voluntarily.
Introduction. Because our primary emphasis and concern lie in resolution of the legal
issues, we often fail to take sufficient time to reach a clear understanding as to the basis of
payment for services rendered by our firm. While I apologize for the apparent formality of this
letter, it is important that the financial aspects of the relationship are clearly understood.
Therefore, we prefer to reach a written agreement with you regarding payment of fees and costs
before undertaking your representation. When the addendum to this letter is countersigned by
you and returned to us, it will serve as confirmation of that agreement.
Our Approach to Practice. Montgomery Purdue tends philosophically to be practical
and result-oriented in its approach to handling clients' affairs. Thus, it is not our general style to
send two, three, or four lawyers to a meeting or hearing simply for the convenience of the
lawyers when one lawyer can efficiently handle the matter. And although we believe that our
lawyers, hired from among the best and brightest graduates available, are capable of first-class,
highly innovative work,. we realize that not every job requires innovative work in order to be
well done, and that not every client is willing or able to pay lawyers to search for the ultimate or
absolute best answer on every project. We will discuss with you on a case-by-case basis
alternate approaches and the costs and benefits of each approach.
We therefore try to accomplish each proj ect in the most efficient manner possible,
considering the nature and significance of the task at hand, and considering any time or other
restraints imposed. To that end, we are interactive in assisting each other where, by virtue of
Roger A. Lubovich
August 9, 2005
Page 3
MONTGOMERY PURDUE BLANKINSHIP &1' AUSTIN PLtc
training or experience, another lawyer in the firm has special abilities in a particular area. We
believe that the combination of technological applications and an interactive, result-'oriented
approach to problem solving gives us both the flexibility and the ability to handle our clients'
needs efficiently, competitively, and well.
Conclusion. We hope the discussion of billing matters, as outlined in the addendum
following, will help you understand the financial side of our relationship. If you have any
questions whatsoever regarding it, please do not hesitate to ask. We are always available to
discuss your bill, and are glad to make our billing records available to you for inspection. We do
not charge for time spent discussing billing matters.
After you have read and understood this letter, please sign and return the extra copy
enclosed. A stamped preaddressed envelope is also enclosed for your convenience.
We appreciate this opportunity to be of service to you, and look forward to working with
you. Weare pleased you are considering our firm as your legal counsel.
Sincerely,
Scott B. Easter
S B E :jma \:c:lmpballetterslbremertonclientengage050808Itr.doc
Enclosure
cc: Michael E. Gossler
Benjamin 1. VandenBerghe
MONTGOMERY PURDUE BLANKINSHIP & AUSTIN PLLC
Roger A. Lubovich
August 9,2005
Page 4
ADDENDUM TO RETAINER LETTEJl.
Scope of Services. We shall advise you as to procedural options available to force
disclosure of additional information; In connection with the current operations of KPS and its
ability to keep operating on a going concern basis, as well as the proposed transfer to Group
Health, if so directed we will take steps to oppose the pending transfer of KHS to Group Health;
and all matters reasonably related thereto. In requesting our services, you have authorized us to
take all actions in connection with those services deemed by us to be reasonable or appropriate.
We understand at this time that you are only engaging us to handle this specific matter. If you
want us to undertake other matters, please advise us.
Professional Staff"mg. Mike Gossler and I will be principally responsible for your case,
although we may be supported by other lawyers, as well as by nonlawyers; such as law clerks
and paralegals working under our supervision. This division of responsibility enables us to
render a work product for you more efficiently, hence at less cost. It is anticipated that Benjamin
1. VandenBerghe, an associate in the firm, will perform some of the work on your behalf under
the direction and supervision of Mike Gossler and me.
Professional Fees and Costs. The fees will be based upon the actual time spent by the
attorney or attorneys and, where appropriate, law clerks and paralegals performing the work,
including time expended on telephone calls.
My current hourly billing rate is $300.00; the hourly rate for Michael E. Gossler is
$300.00; and the hourly rate for Benjamin 1. VandenBerghe is $150.00.
We will send you itemized monthly statements for fees incurred and costs we have
advanced on your behalf. While we understand that the City has entered into contribution
agreements with others, including Kitsap County Medical Society and Kitsap County, with
respect to payment of fees and costs incurred by our firm, you have agreed that invoices should
be sent to the City and paid by the City, subject to its rights to pursue contribution from others.
Those statements can be as general or as detailed in nature as you desire. Your statements will
also include costs advanced on your behalf for photocopying, long-distance charges, travel
expenses, mileage, filing fees, court reporter fees, messenger fees, process service fees,
computer-assisted legal research, recording fees, and the like. Since copying charges can be
significant on an active matter, please indicate to me your preference as to whether you want me
to copy you with everything that is received or sent by our office, or simply those letters, memos,
or pleadings that are particularly significant. If you do not express a preference, we will assume
you want to receive a copy of everything. Obviously, we can adjust this at any time, consistent
with your wishes.
You have asked that we direct client copies to your attention and that you will distribute
copies as appropriate, to other clients, which we are happy to do to help minimize copying
charges.
Termination of Service. You are, of course, free to terminate our services at any time,
just as we are free to withdraw from representing you upon giving you reasonable notice and an
opportunity to secure other counsel. At such time as our representation is terminated, however,
"
Roger A. Lubovich
August 9, 2005
Page 5
MONTGOMERY PURDUE BLANKINSHIP & AUSTIN "nc
we will expect payment in full from you for all fees and costs then unpaid. It is understood that
the files maintained by our firm in support of our legal efforts are the property of the firm. Upon
request, you will be provided with copies of your files, at your expense for our normal photocopy
charges.
APPROVED AND ACCEPTED:
CITY OF BREMERTON
~. ---
/ ~
(~J: "Koger A. LUbO~~ AUo,:;:--'
~~~
~y: . D6z.vmcill, M OJ ~~ L I
YiMelf "'f/I;/;(fV^~ t t. 1-,4-4 { I p~
KITSAP COUNTY MEDICAL SOCIETY
By: Jason C. Cheung, M.D.
KITSAP COUNTY
By:
...---'.
D t .'!4 I I' C( 7" /~
a e: fi \..1. V- \ ( C(h,l)
Date: dur. r, ~ ~
Date:
Date: