Explanation
BACKGROUND: The City Attorney’s office filed a nuisance abatement action in the Franklin County Environmental Court against Paxe Latitude LP (“Paxe”) on January 28, 2022. This lawsuit sought to address chronic code violations and criminal activity occurring at Paxe’s apartment complex located at 525 Sawyer Boulevard, commonly known as “Sawyer Towers” or “Latitude Five 25”. On Christmas Day, December 25, 2022, all residents were evacuated from the complex due to unsafe conditions caused by frozen and bursting waters pipes. On February 16, 2023, the City prevailed on a motion for contempt and Paxe was ordered to pay over $4,000,000.00 in fines. On February 20, 2023, Paxe filed for bankruptcy in the United States Bankruptcy Court for the District of New Jersey in In re Paxe Latitude LP, 23-11337 seeking to avoid payment of its fines. In order to retain local counsel, the City entered into a special counsel agreement with Klestadt Winters Jureller Southard & Stevens LLP on February 28, 2023, for payment not to exceed $50,000.00. Special counsel filed a motion to dismiss on the City’s behalf seeking return of the case to Ohio and provided representation and multiple hearings in New Jersey. The bankruptcy court denied the City’s motion to dismiss, allowing the proceedings to continue in the United States Bankruptcy Court for the District of New Jersey. The continuation of the bankruptcy case will require additional court appearances and filings in New Jersey, and an additional $50,000.00 in funds are now needed to allow for continued representation.
FISCAL IMPACT: This contract will be funded by the Environmental Fund. The amount of the contract modification is $50,000.00. The total amount of this contract, as modified, is $100,000.00.
COMPANY: Klestadt Winters Jureller Southard & Stevens, LLP, 200 West 41st Street, 17th Floor, New York, New York 10036, FID: 13-4142915, CC044556, expires 3/8/2025
Title
To authorize the City Attorney to mod...
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