By Roger McKinney
rmckinney@joplinglobe.com
COLUMBUS, Kan. — The Cherokee County Commission on Monday approved a contingency-fee agreement with attorneys pursuing a lawsuit against Penn National Gaming on the county’s behalf.
The County Commission on Sept. 11 sued Penn National Gaming in Shawnee County District Court, alleging breach of contract, after the company withdrew from its plans to build a state-owned casino in Cherokee County. The lawsuit alleges that by withdrawing, Penn National breached a predevelopment agreement it had with the county. The county is seeking nearly $53 million in damages for lost revenues.
The payment agreement approved by the commissioners requires the county to pay the attorneys for their services only if the lawsuit is successful. Regardless of the lawsuit’s outcome, the county must pay the expenses of the attorneys in the investigation and trial. Those costs may include long-distance telephone charges, copying expenses, investigative reports, expert fees, filing fees and process-service costs.
Under the agreement, the county would pay the attorneys 25 percent of any settlement amount obtained before trial and 35 percent of any verdict or settlement resulting from a trial.
The agreement is with the Topeka law firm of Fisher, Patterson, Sayler and Smith. The firm includes attorneys David Cooper and Teresa Watson. Cooper, before Penn National’s withdrawal, had been working on legal issues related to casino matters, with the county’s fees for Cooper’s work being reimbursed by Penn National.
Asked to estimate the county’s potential costs with the agreement, County Counselor Kevin Cure said: “It could be tens of thousands of dollars.”
He said he didn’t want to try to make a better estimate.
Commissioner Rodney Edmondson said the contingency agreement will be much less expensive for the county than a so-called “pay-as-you-go” agreement. He said the county can manage costs of $30,000 or $40,000 much easier than it could manage costs of several hundred thousand dollars.
The commission met behind closed doors for 25 minutes under the exemption to the Kansas open-meeting law allowing discussion of attorney-client information. Cooper and Watson participated in the closed-door meeting by phone, and Cure was there in person. That was followed by a 10-minute, closed-door meeting with Cure.
In other business Monday, the commission:
n Approved a resolution regarding flood-plain management.
n Heard from Cindy Harrold, Columbus campus director for Coffeyville Community College, who told the commissioners that the college has secured a $451,500 grant from the federal Economic Development Administration and a $100,000 grant from Kansas Workforce Solutions toward a planned $903,000 training center focusing on welding and construction technology.
Harrold said the building will be just west of Columbus on U.S. Highway 160. The program expects to have students beginning August 2009.
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