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HomeMy WebLinkAbout17113 1 RESOLUTION NO. 17,113 2 3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER 4 INTO A CONTINGENCY FEE AGREEMENT WITH ZELLE LLP AND 5 ANTIMONOPOLY COUNSEL, AND TO AUTHORIZE THE CITY 6 ATTORNEY TO PROSECUTE AFFIRMATIVE LITIGATION ON 7 BEHALF OF THE CITY OF LITTLE ROCK, ARKANSAS, AS A NAMED 8 PLAINTIFF AND PROPOSED CLASS REPRESENTATIVE IN FEDERAL 9 ANTITRUST CLASS ACTION PROCEEDINGS SEEKING RECOVERY 10 OF OVERCHARGES ARISING FROM THE PURCHASE OF FIRE 11 APPARATUS; AND FOR OTHER PURPOSES. 12 13 WHEREAS, the City of Little Rock,Arkansas, through the Little Rock Fire Department, purchases 14 fire apparatus, including pumpers,ladder trucks,and rescue vehicles,as essential capital equipment for the 15 protection of the lives and property of the City's residents; and, 16 WHEREAS, federal antitrust class action proceedings have been filed against REV Group, Inc., 17 Oshkosh Corporation, Pierce Manufacturing, Inc., Rosenbauer America, LLC, Rosenbauer South Dakota, 18 LLC, and Rosenbauer Minnesota, LLC, alleging those manufacturers consolidated the United States fire 19 apparatus market through serial acquisitions and thereafter restrained competition by restricting production, 20 extending delivery backlogs,exchanging competitively sensitive information,and imposing price increases 21 after orders were placed, in violation of Section 7 of the Clayton Act, Section 1 of the Sherman Act, and 22 the antitrust and consumer protection statutes of the several states, including the Arkansas Deceptive Trade 23 Practices Act,Ark. Code Ann. § 4-88-101 et seq.; and, 24 WHEREAS, those proceedings have been centralized by the United States Judicial Panel on 25 Multidistrict Litigation as In re: Fire Apparatus Antitrust Litigation, MDL No. 3179, in the United States 26 District Court for the Eastern District of Wisconsin, and the associated action captioned Unified 27 Government of Wyandotte County and Kansas City, Kansas v. REV Group, Inc.,et al., Case No. 2:26-cv- 28 02057(D.Kan., filed January 29,2026),has been provided to the Board of Directors as background; and, 29 WHEREAS, the City of Little Rock purchased fire apparatus, not for resale, within the class period 30 pleaded in those proceedings,and the City's claims fall within the scope of the classes as pleaded; and, 31 WHEREAS, the law firms of Zelle LLP and Antimonopoly Counsel, serving as co-counsel, are 32 experienced in the prosecution of complex antitrust class action litigation and have proposed to represent 33 the City on a contingency basis, advancing all litigation expenses and receiving compensation only in the [Page 1 of 3] 1 event of a recovery; and, 2 WHEREAS, the City Board of Directors finds that the prosecution of these claims is in the best 3 interests of the City of Little Rock and its taxpayers,and that authorization of the contingency fee agreement 4 and the prosecution of affirmative litigation will permit the City to seek recovery of public funds without 5 cost to the General Fund. 6 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 7 OF LITTLE ROCK,ARKANSAS; 8 Section 1.Authorization to Prosecute Affirmative Litigation. The City Attorney is hereby authorized 9 to prosecute affirmative litigation on behalf of the City of Little Rock,Arkansas, as a named plaintiff and 10 proposed class representative in In re: Fire Apparatus Antitrust Litigation, MDL No. 3179, pending in the 11 United States District Court for the Eastern District of Wisconsin, and in any associated, related, or 12 successor action, for the purpose of recovering overcharges and other damages incurred by the City in the 13 purchase of fire apparatus,together with such injunctive and equitable relief as may be available.The City 14 Attorney shall exercise supervisory oversight of this litigation at all stages. 15 Section 2.Authorization to Enter into a Contingency Fee Agreement. The City Manager is hereby 16 authorized to enter into a contingency fee agreement with Zelle LLP and Antimonopoly Counsel, as co- 17 counsel, on terms consistent with those presented to the Board of Directors, under which counsel advance 18 all litigation expenses, the City incurs no upfront fees, costs, or expenses, and counsel are compensated 19 only from a recovery obtained on behalf of the City or of a class of which the City is a member. Any 20 settlement of the City's claims shall require prior approval of the Board of Directors. 21 Section 3.Authority to Take Necessary Action. The City Manager and the City Attorney, and such 22 other City officers and employees as they may direct, are authorized to take all actions necessary or 23 appropriate to effectuate this Resolution, including executing such documents, preserving and producing 24 such records, and making such filings and appearances as lead plaintiffs' counsel may require to add the 25 City of Little Rock as a named plaintiff and proposed class representative in the referenced proceedings. 26 Section 4. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 27 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 28 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 29 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 30 resolution. 31 Section 4.Repealer.All laws, ordinances,resolutions, or parts of the same,that are inconsistent with 32 the provisions of this resolution,are hereby repealed to the extent of such inconsistency. 33 ADOPTED:AUGUST 4,2026 34 II [Page 2 of 3] 1 ATTEST: APPROVED: 2 3 al(AM' 4 Allison Sears,City Cler Frank Scott,Jr.,Mayor g Y 5 APPROVED AS TO LEGAL FORM: 6 7 8 Thomas M.Carpenter,City Aft rney 9 // 10 // 11 // IIP 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 /I 21 // 22 // 23 // 24 // 25 /I 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // [Page 3 of 3]