U.City lawyer wins big in class-action case

Seven years ago, when lawyer John Mulligan began trying to force cell phone companies to pay municipal taxes, he was in a David and Goliath matchup.

Mulligan, a solo practitioner, recalled a meeting where the cell phone companies' representative was an attorney for the Chicago megafirm, Winston & Strawn.

Mulligan said he was hoping for a quick settlement. "But this attorney told me, 'I have an infinite litigation budget. I will be retired before you ever see a penny in this case,'" Mulligan said.

But Mulligan subsequently got some muscle of his own — St. Louis class-action firm Korein Tillery — and began winning. In settlements across the state, the cell phone companies agreed to pay millions in taxes to cities.

And Mulligan has made millions in fees. But instead of enjoying his success, Mulligan finds himself under fire in his hometown of University City — which stands to be one of the beneficiaries of the latest cell phone case, against AT&T.

Mulligan, a lifelong resident of University City and its municipal attorney — like his father was from 1963 to 1986 — is being accused of having a conflict of interest in advising the city on attorney's fees in the AT&T case.

The matter came to a head at Monday night's City Council meeting, where two residents, both lawyers, accused Mulligan and his legal team of seeking an excessive cut — $16 million — of the $65 million settlement in the AT&T case. (U. City's cut of that settlement would be $874,000, and the city also would collect an additional $184,000 a year in tax revenue.)

"There is indeed a conflict," said council member Lynn Ricci, a lawyer. "I'm not saying Mr. Mulligan shouldn't be fairly compensated, but he should not be overly compensated to the detriment of the city."

The council and Mayor Joe Adams unanimously agreed to Ricci's motion to hire an independent lawyer to review the fees and settlement.

Mulligan, 50, said he has developed a thick skin after years in the courtroom. But he said the comments at Monday night's meeting left him shaken.

"It really hurts that some people think I'd try to rip off my own city," he said. "I'm sorry if it sounds like I'm venting, but I don't need this crap. Not like my work is crap, but I take offense. My integrity's being questioned."

Source