County of Santa Clara, Petitioners v. the Superior Court of Santa Clara County, Respondent; Atlantic…

Summary

The California Supreme Court held that contingent-fee arrangements are not categorically barred in public-nuisance-abatement actions. Such arrangements are permissible when the action does not threaten fundamental constitutional interests or the continued operation of an existing business, but only if neutral government attorneys retain and exercise control over all critical discretionary decisions and the retention agreement contains specified safeguards. The court reversed and remanded because the agreements in the record lacked the required provisions. Justice Werdegar, concurring, agreed that the categorical prohibition was too broad but expressed additional concerns about possible settlement conflicts and the timing of defendants' motion.