Landrum v. Commonwealth ex rel. Beshear

In this declaratory judgment action the Supreme Court reversed the judgment of the circuit court in favor of the Office of the Attorney General (OAG) on its action seeking to vindicate its right to contract with outside counsel on a contingency-fee basis, holding that the OAG is subject to the contracting-oversight requirements of the Model Procurement Code and that the Government Contract Review Committeee (Committee) of the Legislative Research Commission did not arbitrarily disapprove of the contingency-fee contract at issue in this case.

The OAG contracted on a contingency-fee basis with a team of law firms to conduct investigation into and commence litigation on potential statutory violations arising out of the manufacture and distribution of prescription opioid products within the Commonwealth. The Committee recommended that William Landrum, the Secretary of the Finance and Administration Cabinet, disapprove and cancel the contract. Landrum did as the Committee recommended. The OAG then brought this declaratory judgment action. The circuit court granted the OAG all the relief it sought. The Supreme Court reversed, holding that the Committee and Landrum did not act inappropriately in disapproving and canceling the contract.