Title
Resolution to Authorize Settlement of Attorney Fees in Class Action Lawsuit Entitled Sean Yannotti v. City of Ann Arbor, United States District Court Case No. 22-cv-12147 (8 Votes Required)
Staff
Prepared by: Jennifer Richards, Senior Assistant City Attorney
Reviewed by: Atleen Kaur, City Attorney
Body
Whereas, On September 10, 2022, Plaintiff Sean Yannotti, the named Plaintiff, filed a proposed class action lawsuit in federal court alleging that the City violated the Fourth Amendment to the U.S. Constitution by chalking his car tire on April 6, 2019, to enforce its parking ordinances;
Whereas, On April 22, 2019, sixteen days after Plaintiff’s tire was chalked, the Sixth Circuit Court of Appeals in Taylor v. City of Saginaw, 922 F.3d 328, 333 (6th Cir. 2019) held that tire chalking is a search and thus, requires either a search warrant or an applicable exception to the Fourth Amendment’s search warrant requirement;
Whereas, The City immediately stopped tire-chalking on April 23, 2019, in response to the Taylor decision;
Whereas, To avoid the cost of continued litigation, the parties settled and resolved the proposed class action lawsuit settlement by R-25-091 through a claim process for Plaintiff and eligible class members to submit a claim for $1.00 per class member, in exchange for a class action settlement agreement, release of all claims against the City, and dismissal of the lawsuit with prejudice;
Whereas, The claim process has concluded and the only remaining issue is the statutorily required reasonable attorney fees for the prevailing party under 42 U.S.C. § 1988;
Whereas, To avoid the cost of further litigation as to the attorney fee question, the parties settled and resolved the issue; and
Whereas, The City Attorney’s Office has advised City Council on the attorney fee issue in an attorney-client privileged and confidential legal advice memorandum;
RESOLVED, That City Council authorizes the City Attorney to fully resolve the reasonable attorney fee dispute in Sean Yannotti v. City of Ann Arbor, 22-cv-12147 for a payment of $122,500.00 from the City to Outside Legal Counsel, PLC, contingent on the receipt of a full and final settlement agreement signed by the parties, release of all claims against the City, and entry of dismissal of the lawsuit with prejudice, without fees and costs to any party, all of which shall be subject to City Attorney approval as to form and substance;
RESOLVED, That payment for the attorney fee settlement shall come from the Police Department General Fund Budget;
RESOLVED, That City Council appropriate $122,500.00 to the FY26 Police Department General Fund budget from the General Fund fund balance;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the Mayor, Clerk, City Administrator and City Attorney are authorized to take actions to implement this resolution, including signing a settlement agreement.