The Fire Department is seeking approval from the City Council on April 21, 2026, for a Legal Services Agreement with Korein Tillery PC, a class action litigation firm, to investigate and pursue antitrust claims related to fire apparatus pricing. Under the proposed agreement, Korein Tillery would represent the City on a contingency basis, meaning there would be no upfront costs.

The arrangement stipulates that Korein Tillery will fund all litigation expenses. The City will incur no attorney fees unless a recovery is obtained, at which point the firm would receive 30% of the gross recovery, along with reimbursement for litigation expenses.

Additionally, the City will incur legal fees for oversight conducted by the City Attorney, which includes reviewing filings, consulting with outside counsel, and making settlement decisions. These costs will be absorbed within the Fire Department’s operating budget, depending on the complexity and progression of the case.

The fire apparatus manufacturing industry has seen considerable consolidation in recent years, leading to rising prices and prolonged delivery times. For example, a Pierce pumper cost the City $338,934 in 1999 and gradually increased to $475,000 by 2015. However, prices have surged dramatically since then, escalating to $751,368 in 2019 and over $1.2 million per pumper by 2023. A quint (a combination pumper and aerial ladder) ordered in 2023 totaled $2,196,645, with price increases far exceeding inflation. These trends have prompted concerns about anticompetitive practices in the market.

In response, the City filed complaints with the California Attorney General’s Office in September 2025 and the Federal Trade Commission in October 2025. Korein Tillery, which has recovered over $17 billion in verdicts and settlements, approached the City after these complaints were filed.

City staff recommends entering into a Legal Services Agreement with Korein Tillery for its expertise in antitrust claims. The City Attorney has reviewed the proposed terms, which grant the City control over the litigation, including decisions on settlement and the option to terminate outside counsel at any time. The agreement clarifies that there are no guaranteed outcomes from the litigation.