HomeMy WebLinkAboutLegislationCity of Miami
Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 16-01056 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY OF
MIAMI'S OFFICE OF THE CITY ATTORNEY TO ACT AS PRO BONO OUTSIDE
COUNSEL TO THE GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST IN ALL PHASES OF LITIGATION AND APPEAL IN THE
MATTER CONCERNING UNITED PARCEL SERVICE'S FAILURE TO DELIVER AN
EXTERNAL HARD DRIVE AS CONTRACTED TO DO SO ON OR ABOUT OCTOBER
19, 2015.
WHEREAS, the City of Miami General Employees' and Sanitation Employees' Retirement Trust
("GESE") was established for the sole purpose of providing retirement benefits to its members; and
WHEREAS, the Board of Trustees ("Board") is authorized to prosecute or defend actions,
claims or proceedings of any nature or kind for the protection of GESE's assets; and
WHEREAS, Members of the Board are the named fiduciaries of the GESE pension plan
("Plan") and, as fiduciaries, the Board has a duty to control and safeguard the Plan in the sole interest
of members and beneficiaries of the Plan; and
WHEREAS, on October 19, 2015, the Board entrusted an external hard drive to the care,
custody, and control of United Parcel Service ("UPS") for delivery to a consultant in Springfield, Illinois;
and
WHEREAS, UPS failed to deliver the hard drive, containing the private information of 11,000
GESE members to the specified destination; and
WHEREAS, the Board incurred $80,000.00 in expenses to protect Plan members' private
information from a possible security breach as a result of UPS's actions; and
WHEREAS, the Board seeks to initiate litigation against UPS to recover those costs, which
were expended from Plan assets; and
WHEREAS, the Board is currently represented by a General Counsel who does not possess
litigation experience; and
WHEREAS, the primary role of the Board's General Counsel is to provide business, strategic,
and legal advice for the sound management of the Plan but does not extend to the initiation and
successful completion of litigation; and
WHEREAS, to prosecute UPS's failure to deliver, the Board must retain legal counsel with
experience in initiating its litigation; and
WHEREAS, Section 40-242(e)(1) and 40-242(f)(1) of the Code of the City of Miami, Florida
authorizes the Board to prosecute UPS's failure to deliver and to retain legal consultants to assist that
City of Miami Page 1 of 2 File Id: 16-01056 (Version: 1) Printed On: 8/5/2016
File Number: 16-01056
prosecution; and
WHEREAS, the cost of retaining a law firm with the requisite skill and knowledge to prosecute
such a claim will be substantial, and would be paid from Plan assets; and
WHEREAS, the City of Miami ("City") has a significant interest in prosecuting UPS's failure to
deliver Plan members' private information, and in recovering the $80,000.00 expended by GESE to
protect its members from a possible security breach, since the City would then have to use its own
reserves to fund the $80,000.00 liability should GESE not recover the funds; and
WHEREAS, Section 21 of the Charter of the City of Miami, Florida states that the City Attorney
shall prosecute or defend such other suits, matters, and controversies as directed to do so by
resolution or ordinance of the City Commission; and
WHEREAS, the Office of the City Attorney ("City Attorney") has the requisite skill and
knowledge to prosecute UPS's failure, obtain a judgment against UPS, and collect any and all
amounts due from them pursuant to any judgment; and
WHEREAS, the City Commission desires that the City Attorney represent the Board in this
matter against UPS in all phases of litigation as pro bono outside counsel;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted
by reference and incorporated as if fully set forth in this Section.
Section 2. The City Attorney is authorized {1} to act as pro bono outside counsel to GESE in all
phases of litigation and appeal in the matter concerning UPS' failure to deliver an external hard drive
as contracted to do so on or about October 19, 2015.
Section 3. This Resolution shall become effective immediately upon its adoption and signature
of Mayor. {2}
APPROVED AS TO FORM AND, CORRECTNESS:
VICTORIA N"ENDEZ
CITY ATTORNEY
Footnotes:
{1} This Resolution shall become effective as specified herein unless vetoed by the Mayor within ten
(10) days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall
become effective immediately upon override of the veto by the City Commission or upon the effective
date stated herein, whichever is later.
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