The California Supreme Court reversed a court of appeal judgment, remanding with directions. The court held that public entities may retain private counsel on a contingency fee basis to prosecute public nuisance actions in certain limited circumstances so long as certain guidelines are adhered to, including that the public entities own, public counsel must direct the case and control all settlement decisions.
The County of Santa Clara and nine other counties filed a public nuisance action to abate the damage caused by a group of businesses’ prior manufacture and distribution of lead paint. Such manufacture had ceased in 1978 when it became illegal. The public entities were represented by both in-house counsel and private counsel, the latter retained on a contingency fee basis.
