Board Fights Fees for Bankruptcy Lawyers
The Board of Supervisors on Tuesday blasted the county’s bankruptcy lawyers for seeking an additional $48 million in compensation and vowed to oppose the effort in court.
“These actions brought by this law firm against the people of Orange County . . . truly give lawyers a bad name,” said Supervisor Tom Wilson.
The law firm, Hennigan, Mercer & Bennett, plans to ask a federal judge for the additional payment, which would come in addition to the $26 million the lawyers have collected.
If approved, it would boost the firm’s total compensation to 8.5% of the $865 million it won for the county in settlements with Merrill Lynch & Co. and other companies accused of helping cause the county’s 1994 financial collapse.
The contract with the law firm promised an hourly rate and unspecified adjustments based on the difficulty of the litigation. The contract was approved by former state Treasurer Thomas W. Hayes, who was appointed by the court to oversee the case. Hayes, however, has rejected the request for the bonus, prompting the attorneys to seek a ruling from the federal court.
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