The City of Houston, represented by Susman Godfrey L.L.P. (“Special Counsel”) sued WTW Delaware Holdings LLC f/k/a Towers Watson & Co. f/k/a Towers Perrin Towers collectively “Towers", in the case styled City of Houston v. Towers Watson & Co.: Civil Action No. 14-cv-02213 (“Lawsuit”). The City asserted claims for negligence, negligent misrepresentations, and professional malpractice.
The City and Towers mediated the case and agreed to enter into the Settlement Agreement and Mutual Release whereby in consideration for settlement of the Lawsuit, Towers will pay the City of Houston Forty Million Dollars ($40,000,000.00) (“Settlement”), and the City will release all claims against Towers both in the Lawsuit and unasserted claims relating to work that Towers performed or may have performed with respect to or on behalf of the Houston Firefighter’s Relief and Retirement Fund, the Houston Municipal Employees Pension System, and the Houston Police Officers’ Pension System.
Pursuant to Professional Services Agreement (Contingent Fee Special Counsel for Lawsuit) between the City and Special Counsel, Contract No. 4600014652 (approved by Ordinance No. 2017-0991 and the Office of the Texas State Comptroller of Public Accounts), and Special Counsel’s Release to the City, dated March 19, 2018, Special Counsel will receive a payment of Eleven Million Dollars ($11,000,000.00) for representing the City. The ordinance specifically delegates authority to the City Attorney to approve distribution of the $11,000,000.00 to Special Counsel.
The remainder of the Settlement in the amount of Twenty-Nine Million Dollars ($29,000,000.00) will be paid into the City’s General Fund.
M/WBE Subcontracting: Not applicable because this is a settlement of a lawsuit.
Fiscal Note: No Fiscal Note is required
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Ronald C. Lewis, City Attorney