Lawsuits What Happens and Best Practices MICKEY MCINNISH

Preliminary Considerations HUD Reporting Requirements Federal money? COCC? Fiduciary Duty of Board to HUD What is notice of lawsuit or potential lawsuit? When do we report to insurance company?

Retention Policy and Letter Litigation holds to prevent destruction of documents. Emails are documents. Personal email accounts can be documents. Other examples of documents. Involve IT professional. Attorney/client privilege and work product.

Accepting Service Policy Procedure Protocol Up the chain…..

Notification Insurance HUD Board of Commissioners PHA board and insurance attorneys Responding to media

Notice from Attorney Interviews Documents requested Emails Discovery Protecting privilege

Attorney Actions Interview all known witnesses Encourage all witnesses to tell the truth Review documents Answer/Motions Affirmative Defenses TIME PERIODS CRITICAL

Insurance Actions Employ attorney Attorney represents who? Reservation of Rights

Insurance Coverage What do we defend? Who do we defend? Are any actions of board or PHA not covered? Separate counsel? Conflicts

Witnesses Corporate witness Fact witnesses Preparing for depositions Person Most Knowledgeable Whom to identify and why Fact witnesses Current employees Former employees Preparing for depositions

Legal Issues and Opinions Difference of opinion between PHA, Board, Attorneys? WHO DECIDES? Conflict of Interest: When report, how resolve? What does this do to attorney/client privilege?

Reports to PHA Regular board reports? Are these privileged? Settlement proposals? How can the board or staff destroy attorney/client privilege? Who decides to settle? What about policy limits and above? Report issues about violations of ACC?

Settlement or Judgments Who authorizes? What if outside policy limits? Can insurance pay limits and bow out? Then what? Federal dollars: COCC? Personal liability for violation of ACC?

Mediation When prepare? When do we bring this up? The good and the bad !!!

Verdict Who pays if no coverage? Who pays attorney fees and costs? Federal dollars? Recouping costs: can we really collect?

Releases General Medicare Minors

Multiple Plaintiffs How divide payment? How paid? Releases Same lawyer representing multiple plaintiffs: any issues?

Appeals Who decides? HUD involvement?

Attorney/Insurance Practice Value of case: what is prepared and who reviews and authorizes? Do we report everything to the board? Settlement options, ranges of settlement. Board: We will NOT settle this case !!!

Conflicts of Interest Who do I represent? Covered/non-covered/excess costs Multiple attorneys Does each do separate cross, direct, motions Or we we work together Who determines what is in the best interest of the housing authority?

Exhibits To Review Litigation hold letter Ensure compliance with litigation hold Give all relevant evidence to lawyer Initial letter to PHA’s attorney

Other Issues Reservation of Rights letter Releases HUD notification act