Miami

Almost Out

Residents could see settlement payouts as early as May

By Angie Hargot

The Miami City Commission approved Thursday an item combining court proceedings for the two settlements awarded to Miami taxpayers who were ripped off in the city’s still-smoldering fire-fee scandal.

The imbroglio began when a fee for fire services was charged to roughly 156,000 Miami taxpayers. That fee was ultimately deemed illegal by the courts. The resulting class action lawsuit yielded a deal brokered by attorney Hank Adorno in 2004. The deal would have granted $7 million to a “lucky seven” taxpayers, along with a $2 million attorney’s fee to Adorno’s firm. The tables were soon turned on Adorno, however, when, in early December, the courts called Adorno’s actions “reprehensible” and the firm was ordered to pay taxpayers an additional $1.6 million for crafting the shady deal.

The amount was added to the more than $15 million the city was to pay back to residents.

“Judge Rodriguez has asked that the Miami commission approve joint administration of the Adorno & Yoss settlement with the city’s settlement,” independent counsel Scott Cole, an attorney with the Brickell firm Cole, Scott & Kissane, P.A., said Thursday.

“So basically there’s just one process instead of two processes with further delays,” Commissioner Joe Sanchez said. “To create one settlement with that savings of money which means people will get more money — I think it’s a no-brainer.”

One settlement means fewer dollars will have to be paid out in legal and administrative court fees. “It gets more money into the people’s pockets,” Cole said. “Not only now will the people get the benefit of the money that this commission approved, but [they] will also get an additional 1.6 million that the Adorno & Yoss law firm will contribute to the settlement. Second, the people will save money in attorney’s fees … it streamlines the process.”

Commissioner Tomas Regalado, like his colleagues, was anxious to see an end to the fire-fee debacle. He inquired about the timeline to start the rebate process.

“Once Judge Rodriguez receives this, is it over in terms of the courts or do we have any other hearing?” Regalado asked.

“It’s not over, [but] I don’t believe we’ll have another hearing” before the Miami Commission, Cole said. He added that with city approval, the judge will sign the preliminary approval order, and notice will be mailed to potential class members. The notice will also be published in the Miami Herald, el Nuevo Herald and on the fire-fee Web site at www.miamifirefeesettlement.com.

“The judge will set a final hearing during which members can either opt out of the class or object to certain portions of the settlement,” Cole said, adding that the judge had estimated that the final hearing would take place in late May or early June.

“After that you have the period when the checks would be issued,” Cole said.

The item passed 4-0, with Commissioner Michelle Spence-Jones absent. Refund information is also available by calling 1-800-981-7567.

Comments? E-mail angie@miamisunpost.com