City of Memphis Legal Spending Under Microscope
FAST FACTS:
  • Legal spending by City of Memphis under review
  • On Your Side Investigators exposed outside firms making millions off deals with the city
  • All existing contracts are now being reviewed by mayor's office
Scott.Noll@wreg.com

(Memphis 8/19/2009) Changes could be on the way after an On Your Side Investigation exposed big spending by the Memphis City Attorney's Office.

Mayor Myron Lowery has ordered a top-to-bottom review of all contracts between outside attorneys and the city.

WREG News Channel 3 Investigators uncovered the city has spent nearly $8 million on outside law firms, experts, and lobbyists in the last four years.

At the same time, taxpayers paid for increases in the number of in-house city legal staffers.


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Saying it's been a topic of community concern since WREG News Channel 3 first exposed spending inside the city's legal department last month, the city's new chief administrative officer says he's been ordered to look at all extraordinary costs inside city hall.

"We're looking at every contract that involves law firms in Memphis," said CAO Jack Sammons.

Between 2006 and 2009, city figures show spending on outside firms increased more than 105%.

That includes nearly $2.3 million spent on outside contracts last budget year.

By contrast, the Shelby County Attorney's Office's entire 2009 budget was about $3.3 million.

County Attorney Brian Kuhn says his budget for outside legal help last year was less than $330,000.

Sammons says it's too early to know what changes could come out of the city's review, and he admits he's still trying to get to the bottom of how much some attorneys are really making.

One thing that Sammons insists, he believes spending inside the law department has to change.

"We're spending money on legal fees like the space program," Sammons said. "We've got to put the brakes on it, hit pause, see where we are. Evaluate these various lawsuits. City government is not meant to be a relief act for the local bar."

Another change inside the city's legal division involves that review of all new contracts.

That duty has been turned over to Deputy Director Veronica Coleman-Davis.

She was appointed to the position by Mayor Pro Tem Myron Lowery.

Previously, contracts were reviewed by City Attorney Elbert Jefferson.

Shortly after taking the oath of office, Lowery tried firing Jefferson citing rising legal expenses.

However, a judge ruled Lowery must get city council approval to fire department heads.