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Consent-General Government # 10.
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| Board of Supervisors |
County Counsel |
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| Subject |
| Authorize an agreement with Baron & Budd and other associated counsel to litigate claims against opioid manufacturers and distributors. (No general fund impact) (Pogledich) |
| Recommended Action |
- Authorize the County Counsel to sign an agreement with Baron & Budd and other associated counsel to litigate claims and pursue remedies against opioid manufacturers and distributors provided it is in the substantially same form as included herewith (Attachment A); and
- Direct the County Counsel to take all further actions reasonably required to pursue the litigation that is the subject of the agreement.
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| Strategic Plan Goal(s) |
Thriving Residents
Safe Communities |
| Reason for Recommended Action/Background |
The opioid crisis is a national problem that also has a foothold in California. The following statistics provide quick insight into the problem:
- Nearly 2,000 Californians died last year from opioids--either prescription medications or related illicit drugs, like heroin;
- Opioid-related deaths increased in California by 34% from 2006-2009 and have stayed relatively static ever since, with small declines in the last 2-3 years;
- Opioid pharmaceutical-related deaths represented 82% of the total opioid related deaths in 2009, but by 2013 that figure had dropped to 73% of opioid related deaths due to a rise in heroin abuse; and
- Heroin-related deaths in California increased 67% between 2006-2013, and by 2013 heroin-related deaths accounted for 25% of all opioid related deaths.
Statistics in Yolo County are roughly in line with state averages in all key categories, including annual death rates per 100,000 residents and prescription data (over 500 prescriptions per 1,000 residents). The most recent data for Yolo County and California is set forth in reports included as Attachments B and C hereto, respectively.
At least 36 California counties are currently in litigation against the opioid industry. The attached agreement with Baron & Budd will enable the County to retain that firm (and certain associated firms) to join other California counties in litigation against certain opioid manufacturers and distributors. The lawsuit would be very similar to lawsuits filed by 32 other California counties (the "consortium" counties) represented by Baron & Budd in the past six months. All of these lawsuits are currently pending in federal district court in Ohio as part of a multi-district litigation ("MDL") proceeding established to ensure coordinated handling of opioid lawsuits filed by about 1,000 jurisdictions nationally. The County's lawsuit will seek remedies that include the recovery of taxpayer funds spent by the County on opioid treatment and related aspects of the opioid crisis that has garnered national attention.
The agreement will be retroactive to the commencement of services by Baron & Budd following some preliminary communications earlier in October 2018 between the County Counsel and firm attorneys. The County Counsel will coordinate with Baron & Budd to finalize a complaint for filing at the earliest possible date. After the complaint is filed, the County Counsel's office will coordinate with other County departments to complete a "Plaintiff's Questionnaire" that is required of all parties asserting claims. The County Counsel will regularly coordinate with other consortium counties to provide litigation oversight and direction, including regarding any settlement negotiations with opioid manufacturers and/or distributors. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The County Counsel participated in early efforts of County Counsels for the consortium counties in March and April 2018 to evaluate the prospect of coordinating in opioid litigation, including the initial selection of a firm to represent the counties. More recently, the County Counsel for Nevada County provided considerable input regarding consortium activities and candidate law firms, including Baron & Budd. Other County departments were also consulted regarding opioid litigation during the course of 2018. |
| Competitive Bid Process |
| Legal service agreements are not subject to competitive bidding requirements. The County Counsel nonetheless obtained proposals from three law firms regarding litigation representation. The proposals addressed a wide range of topics that included litigation strategy options as well as contingency fee rates and related matters. Baron & Budd's proposal offered the lowest contingency fee rate (negotiated at 18% by the consortium counties), compared with 20% and 25% offered by the other two firms. Other factors supporting the selection of Baron & Budd include the firm's influential position in the opioid MDL on court-established committees, its representation of about half of the other jurisdictions participating nationally in the litigation, and its representation of the California consortium counties that collectively include nearly 11 million residents. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| All services provided by Baron & Budd and associated counsel will be on a contingency fee basis, with no out-of-pocket costs to the County regardless of the outcome in the litigation. |
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