© 2012 The Texas Lawbook.
By Mark Curriden
Senior Writer for The Texas Lawbook
The Harris County Housing Authority voted Thursday to accept a $773,731 settlement agreement with Haynes and Boone over legal payments the Houston agency believes were improperly made to the law firm through a contractor.
The Houston public housing agency contends that a consultant working on hurricane preparedness paid Haynes and Boone the money, even though the HCHA stipulated that the board must approve any fees of more than $25,000. There is no record in the organization’s minutes showing that they approved the payments in 2008 and 2009.
At the time, Haynes and Boone partner Casey Wallace was chairman of the housing authority.
The HCHA voted in November to file a lawsuit, if necessary, against the Dallas-based law firm to recoup the money.
The dispute never made it that far. Instead, the two sides went to mediation and reached an agreement in early December.
“This Agreement shall not in any way be construed as an admission of fault by any party,” according to the final settlement agreement, which was obtained by The Texas Lawbook. “The parties specifically deny any allegations of fault.”
The agreement, which described the dispute as a “misunderstanding,” requires Haynes and Boone to deliver the $773,731 check to the housing authority by Jan. 5.
“This matter was never about the quality of legal work provided by Haynes and Boone, but was instead about the process under which our contractor authorized that work,” HCHA Board Chairman Beto Cardenas said in a written statement issued jointly by the two parties. “Haynes and Boone continues to show its dedication to the people of Harris County and HCHA is grateful for its professionalism and attention to this matter.”
Haynes and Boone Managing Partner Terry Conner said the firm was “pleased that we were able to resolve these issues to everyone’s satisfaction.”
“We value our leadership role in the Houston business community,” Conner said in the statement.
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