Countywide : Law Firm for Creditors Reduces Its Bill to County

The county and a law firm representing creditors seeking to recoup funds lost in the county’s bankruptcy have agreed to reduce the firm’s bill by $67,500.

The firm of Murphy, Wier & Butler has received about $1.7 million from the county to cover its work between December 1994 and June 1995. But the county disputed some of the firm’s charges.

Deputy County Counsel Thomas C. Agin said the county balked at paying attorneys who billed for work that lower-salaried employees could handle. The county also objected to paying several attorneys for attending hearings when county officials felt only one would be sufficient.

After negotiations, the firm agreed to reduce the bill.

Murphy, Wier & Butler serves as the Bankruptcy Court counsel for the various parties who are owed money by the county. The Dec. 6, 1994, bankruptcy was caused by a $1.6-billion loss to a county-run investment pool of money from cities, school districts and other government entities.

The county had previously agreed to pay a portion of the creditors’ legal fees.

The Board of Supervisors approved the fee reduction on Tuesday.