HomeMy WebLinkAbout[04g] Accept Service
Council Agenda Item \[04g\]
MEETING DATE: July 15, 2019
AGENDA ITEM: Accept Service – Requested Acton: Authorize the City Attorney to accept
service on behalf of the City of St. Joseph for the Qui Tam Action regarding Nelson Auto.
SUBMITTED BY: City Attorney
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: The following is an extract from the email received from City Attorney Sue
Kadlec:
We have been asked to accept service on behalf of Annandale, St. Joe and Pierz regarding a Qui Tam
action against Nelson Auto. This is similar to a class action suit, but it is brought on behalf of govt units/agencies.
The named plaintiff is bringing the suit on behalf of the state and several local governments that purchased vehicles
through the state cooperative purchasing list. It appears that Nelson overcharged for the vehicles. Under a qui tam
action, the named plaintiff gets up to 30% of the lawsuit proceeds, and the lawyers fees paid. The cities are not
responsible for the costs or attorneys fees.
If we do not accept service, then the plaintiff will have to personally serve the complaint upon each City. Accepting
service does not mean that the City has to take any further action in the lawsuit, other than providing information
regarding vehicles purchased from the list. While I anticipate minimal recovery from the suit, I see no detriment to
the City of being a ride along plaintiff in the suit.
I would request that you have your councils authorize us to accept service on behalf of your City.
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
REQUESTED COUNCIL ACTION: Authorize the City Attorney to accept service on behalf of the City of St.
Joseph for the Qui Tam Action regarding Nelson Auto.