SIOUX FALLS, S.D. (KELO.com) -- The City of Sioux Falls risk-sharing pool paid just under $16,000 in legal fees and expenses for the city to fight the Argus Leader's lawsuit to make the Premier Center settlement agreement public.
Monday, KELO.com News requested the South Dakota Public Assurance Alliance for the attorneys' billing records for their legal work for the City. Attorneys fees and expenses totalled $15,911.48 to handle the matter from the Argus' filing in Second Circuit Court through the Argus' appeal of the verdict in favor of the City to the South Dakota Supreme Court.
Yesterday, the SDPAA released 34 pages of billing documents to KELO.com News. (Click here to view.) The description of services are redacted as the SDPAA takes the position that information is protected under attorney-client privilege or attorney work product.
"The SDPAA is not an insurance company and we don’t charge premiums," according to Judy Payne, SDPAA executive director. "The SDPAA is a local government risk-sharing pool authorized and governed by SDCL ch. 1-24. Members make annual contributions for coverage based upon rates established after annual independent actuarial analyses and recommendations."
So, is this taxpayer money?
Payne said it is accurate to call the legal fees paid to Woods law firm "taxpayer funded."
The Woods, Fuller, Shulz and Smith P.C. firm in Sioux Falls represented the City and had their attorneys fees covered by the SDPAA. The SDPAA is owned by over 400 South Dakota governmental units like cities and counties.
Woods shareholder James E. Moore billed at $150 per hour and associate attorney James Feist billed at $135. Their rates were typical for insurance-based legal work in the Sioux Falls market. Moore performed most of the legal work on the case according to the billing records.
September 15, 2015, the City and several potential defendants signed what was purported at the time to be a conficential "$1 million" settlement agreement. The Sioux Falls newspaper filed their lawsuit requesting the City release the Premier Center settlement agreement and other issues on December 1, 2015. The Argus and the City had a hearing before Second Circuit Judge John Pekas on February 22, 2016. He ruled on May 20, 2016 in favor of the City, that the agreement could remain secret.
The Argus appealed. On January 11, 2017, the South Dakota Supreme Court heard oral arguments on the matter. On September 20, 2017, the Supreme Court ruled that the secret settlement agreement was a public record and must be released. On September 22, 2017, the City waived its appeal period to the United States Supreme Court and released the settlement agreement to the media.
Note: The article was updated at 4:55 p.m. 10/26/17 to clarify that the SDPAA is not an insurance carrier but a risk pool and whether the funds for the legal fees were taxpayer funded. It was updated again at 5:10 p.m. to fix math errors.