Attorneys representing the city and the Official Committee of Retirees told Bankruptcy Judge Steven Rhodes today that they have reached an agreement about payment of an insurance policy for the committee’s attorneys. The policy will protect the lawyers from lawsuits resulting from their handling of the bankruptcy case.
Terms of the agreement were not disclosed during the short hearing, but a court filing from last month stated the policy would cost $602,250 with $250,000 to be held in escrow and refundable. “The Committee Members are concerned with their exposure to frivolous litigation and believe that procuring the Insurance Policy will ensure that the Committee remains functional and balanced,” attorneys for the committee wrote in a motion seeking payment from the city for the policy.
Rhodes last week was critical of the $602,250 request.
Attorneys today did not reveal terms of the agreement, but said a motion seeking Rhodes’s approval would be filed this week.