What’s hidden? Myrtle Beach, Horry County keep public in the dark on attorney contracts
Myrtle Beach and Horry County are refusing to allow the public the right to inspect agreements the governments have with their respective attorneys litigating the hospitality fee lawsuit.
Myrtle Beach denied The Sun News’ request for the public contract, claiming attorney-client privilege. Horry County says it doesn’t have a contract, producing only an email between attorneys.
The Freedom of Information request comes from The Sun News while both sides collectively are spending more than $1.2 million in attorney fees, while accusations from county council suggest the City of Myrtle Beach has promised its attorneys millions in legal fees from its prospective winnings in the hospitality fee revenues.
Despite Horry County officials initially agreeing to end the months-long litigation after days of mediation, the council voted down the compromise in December over its concerns regarding the legal fees. However, Myrtle Beach responded the following day, accusing the county of purposefully misleading residents and denying it made such promises.
On Dec. 19, The Sun News requested any agreements, formal or informal, between the respective governments and attorneys to see what compensation was promised when the lawsuit began.
Myrtle Beach denied the open records request on Jan. 2.
Horry County provided an informal 3-4 sentence email with no formal information laying out costs after charging The Sun News $12.50 for what can only be perceived as an hourly rate (Horry County refuses to detail open records charges).
South Carolina’s Freedom of Information Act says in Section 30-4-50(A)(6) “information in or taken from any account, voucher, or contract dealing with the receipt or expenditure of public or other funds by public bodies” is a public record.
Myrtle Beach
While Myrtle Beach claims the agreement is protected by attorney-client privilege, it’s possible the city will soon make it public after The Sun News disputed for weeks it should be public.
Myrtle Beach hired the Columbia-based Willoughby & Hoefer last year to represent its interests and has paid the law firm almost $900,000. City Spokesperson Mark Kruea said the contract is protected since it’s a part of conversations regarding ongoing litigation. That said, the city may reconsider its position.
“We are aware of your interest, though, and will advise if any waiver of that privilege is granted at some future time,” Kruea said.
Myrtle Beach Mayor Brenda Bethune told The Sun News in an email this weekend the city doesn’t have a contract but a “Letter of Engagement which outlines the scope of work and the hourly fees.” She said she plans to ask city council on Tuesday to consent to release the agreement.
“The City has not, nor would we ever, promise ‘millions’ for representing us,” she wrote.
FOIA Lawyer Jay Bender said these documents should be a public record since they deal with the county setting up agreements with attorneys and do not deal directly with the merits of the case.
“A contract itself is not covered by the attorney-client privilege. Only confidential matters relating to the representation are confidential,” Bender said.
Horry County
Horry County recruited its attorney informally through an email, according to the records request. On April 8, Burr-Forman Attorney Henrietta Golding thanked County Attorney Arrigo Carotti for a referral and agreed to be a part of the case.
“Of course we will handle for the county and I appreciate the referral,” Golding wrote to Carotti. The email appeared to have 3-4 sentences, but this was the only one not blacked out.
County Spokesperson Kelly Moore said there is not a more formal agreement or contract, which isn’t unusual when Horry County procures legal services.
When a client is familiar with an attorney, it is acceptable to have an informal agreement, Horry County Chair Johnny Gardner said. Burr-Forman, a regional law firm with a location in Myrtle Beach, has regularly done work for Horry County, he said, so there is a professional trust between the two organizations.
As of November, Horry County has been billed more than $350,000 from Burr-Forman, according to a separate open records request.
Moore said the county pays a fluctuating hourly rate for legal services and is billed monthly but refused to outline those costs. The county does not consider a breakdown of each month’s bill a public record.
“Based on course of dealing and course of performance, considerations include the nature, extent, and difficulty of the case, professional standing of counsel, beneficial results obtained over time, and customary legal fees for similar services,” Moore wrote.
