Contingency Fees OK'd In Anaheim Hotel Tax Fight

Law360, New York (January 7, 2010, 7:06 PM EST) -- The city of Anaheim was correct to pay a contingency fee to outside counsel who worked on its fight to get online travel Web sites to pay in full a tax on hotel rooms, a California appeals court has ruled.

A three-judge panel of the California Court of Appeal ruled unanimously Tuesday that the use of outside counsel on contingency fees does not violate a government lawyer's duty to neutrality because an Anaheim city attorney was closely leading outside counsel's prosecution of the case.

The decision...
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