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HomeMy WebLinkAboutResolution 2025 (32)ST. CROIX C0.-LINTY, Resolution No. 32 (2025) RESOLUTION DELEGATING AUTHORITY TO ENTER INTO SETTLEMENT AGREEMENTS WITH OPIOID DEFENDANTS TO THE DESIGNATED ST. CROIX COUNTY OFFICERS 1 WHEREAS, the St. Croix County Board of Supervisors previously authorized the County 2 to enter into an engagement agreement with von Briesen & Roper, s.c., Crueger Dickinson LLC 3 and Simmons Hanly Conroy LLP (the "Law Firms") to pursue litigation against certain 4 manufacturers, distributors, and retailers of opioid pharmaceuticals (the "Opioid Defendants") in 5 an effort to hold the Opioid Defendants financially responsible for the County's vast expenditure 6 of money and resources to combat the opioid epidemic; and 8 WHEREAS, on behalf of the County, the Law Firms filed a lawsuit against the Opioid 9 Defendants; and 10 11 WHEREAS, the Law Firms filed similar lawsuits on behalf of 66 other Wisconsin counties 12 and all Wisconsin cases were coordinated with thousands of other lawsuits filed against the same 13 or substantially similar parties as the Opioid Defendants in the Northern District of Ohio, captioned 14 In re: Opioid Litigation, MDL 2804 (the "Litigation"); and 15 16 WHEREAS, four (4) additional Wisconsin counties (Milwaukee, Dane, Waukesha, and 17 Walworth) hired separate counsel and joined the Litigation; and 18 19 WHEREAS, since the inception of the Litigation, the Law Firms have coordinated with 20 counsel from around the country (including counsel for Milwaukee, Dane, Waukesha, and 21 Walworth Counties) to prepare the County's case for trial and engage in extensive settlement 22 discussions with the Opioid Defendants; and 23 24 WHEREAS, 2021 Wisconsin Act 57 created Wis. Stat. § 165.12 relating to the settlement 25 of all or part of the Litigation; and 26 27 WHEREAS, pursuant to Wis. Stat. § 165.12(2), the Legislature's Joint Committee on 28 Finance is required to approve settlement agreement between the County and Opioid Defendants; 29 and 30 31 WHEREAS, pursuant to Wis. Stat. § 165.12(2), the proceeds from any settlement of all or 32 part of the Litigation are distributed 70% to local governments in Wisconsin that are parties to the 33 Litigation and 30% to the State; and 34 35 WHEREAS, Wis. Stat. § 165.12(7) bars claims from any Wisconsin local govermnent 36 against the Opioid Defendants filed after June 1, 2021;and 37 38 WHEREAS, several of the Opioid Defendants previously agreed to settlement terms with 39 the Plaintiffs' Executive Committee ("PEC"), which is comprised of attorneys representative of 40 all litigating local governments around the country, subject to individual approval of the litigating 41 local governments including St. Croix County; and 42 Resolution No. 32 (2025) ST. CROI(1 �NTY, RESOLUTION DELEGATING AUTHORITY TO ENTER INTO h'sCr��r�t�t SETTLEMENT AGREEMENTS WITH OPIOID DEFENDANTS TO THE DESIGNATED ST. CROIX COUNTY OFFICERS 43 WHEREAS, representatives of the Law Firms serve on the PEC and, therefore, are 44 intimately familiar with the terms of the previous settlements and will be familiar with the terms 45 of any settlement with any other Opioid Defendant recommended for approval by the PEC; and 46 47 WHEREAS, it is anticipated that several additional settlements will be proposed by 48 various Opioid Defendants and recommended for approval by the PEC; and 49 50 WHEREAS, St. Croix County's process for approving settlement with an Opioid 51 Defendant is typically a process requiring weeks for committee review and approval as well as 52 approval by the full St. Croix County Board; and 53 54 WHEREAS, given concerns surrounding timing for participation in future settlements 55 combined with the number of anticipated settlements, it would be prudent to provide an 56 opportunity for St. Croix County to create a process whereby the authority to enter into settlement 57 agreements is delegated to a responsible County officer or officers provided that any such 58 settlement agreement is recommended by the PEC and the Law Firms; and 59 60 WHEREAS, the intent of this Resolution is to delegate to the specified County officer or 61 officers the authority to enter into settlement agreements with any Opioid Defendant from the date 62 of this Resolution forward provided (a) the settlement is recommended for approval by the PEC 63 and the Law Firms; and (b) the St. Croix County share of proceeds from any such settlement is 64 consistent with the shares established in Addendum Two, a copy of which is attached to this 65 Resolution and which is consistent with the allocations established in previous settlements with 66 Opioid Defendants. 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 NOW, THEREFORE, BE IT RESOLVED that the County Board of Supervisors hereby makes the following resolutions: 1. The County Board hereby delegates authority to the County Administrator to enter into a settlement agreement, including without limitation the execution of any and all ancillary documents and agreements necessary to effectuate a settlement, with any Opioid Defendant provided (a) the PEC and the Law Firms shall have recommended the settlement; and (b) the St. Croix County share of proceeds from any such settlement is consistent with the shares established in Addendum Two, a copy of which is attached to this Resolution and which is consistent with the allocations established in previous settlements with Opioid Defendants. 2. Prior to executing any settlement agreement, or any document related thereto, the County Administrator shall provide notice to the Board Chair of the proposed settlement and the terms related thereto. 3. The County Administrator is authorized and directed to take any and all such other and further action necessary to effectuate the intent of this Resolution. 2 ST. CROIex V,NTY, �SL'[z12SZAl� Resolution No. 32 (2025) RESOLUTION DELEGATING AUTHORITY TO ENTER INTO SETTLEMENT AGREEMENTS WITH OPIOID DEFENDANTS TO THE DESIGNATED ST. CROIX COUNTY OFFICERS 85 BE IT FURTHER RESOLVED that all proceeds from any settlement agreement not 86 otherwise directed to the Attorney Fees Account shall be deposited in the County's Opioid 87 Abatement Account. The Opioid Abatement Account shall be administered consistent with the 88 terms of this Resolution, Wis. Stat. § 165.12(4), and the applicable settlement agreement. 89 90 BE IT FURTHER RESOLVED that the County hereby authorizes the establishment of 91 an account separate and distinct from any account containing funds allocated or allocable to the 92 County which shall be referred to by the County as the "Attorney Fees Account." An escrow agent 93 shall deposit a sum equal to up to, but in no event exceeding, an amount equal to 20% of the 94 County's proceeds from a settlement agreement into the Attorney Fees Account unless such other 95 amount is established by the applicable settlement agreement. If the payments to the County are 96 not enough to fully fund the Attorney Fees Account as provided herein because such payments are 97 made over time, the Attorney Fees Account shall be funded by placing up to, but in no event 98 exceeding, an amount equal to 20% of the proceeds from a settlement agreement attributable to 99 Local Governments (as that term is defined in the MOU) into the Attorney Fees Account for each 100 payment. Funds in the Attorney Fees Account shall be utilized to pay the fees, costs, and 101 disbursements owed to the Law Firms pursuant to the engagement agreement between the County 102 and the Law Firms provided, however, the Law Firms shall receive no more than that to which 103 they are entitled under their fee contract when considering the amounts paid the Law Finns from 104 any fee fund established in a settlement agreement and allocable to the County. The Law Firms 105 may make application for payment from the Attorney Fees Account at any time and the County 106 shall cooperate with the Law Firms in executing any documents necessary for the escrow agent to 107 make payments out of the Attorney Fees Account. 108 109 BE IT FURTHER RESOLVED that all actions heretofore taken by the St. Croix County 110 Board of Supervisors and other appropriate public officers and agents of the County with respect 111 to the matters contemplated under this Resolution are hereby ratified, confirmed, and approved. Administration Committee Recommended MOVER: Ryan Sherley SECONDER: Bob Long AYES: Paul Berning, Scott Counter, Bob Feidler, Bob Long, Ryan Sherley EXCUSED: None St. Croix County Board of Supervisors Action: This Resolution was ADOPTED by the St. Croix County Board of Supervisors on August 5, 2025. W44- Bob Long, County oar air Christine Hines, County Clerk