Chancellor Carol Folt approved the internal decision to retain Skadden, White said, after a recommendation from Board of Trustee members Lowry Caudill, Dwight Stone and Jefferson Brown, as well as Felicia Washington, vice chancellor for workplace strategy, equity and engagement.
“Of the firms considered, Skadden offered the best team to match the particular litigation challenges faced by the University,” Gregory said.
According to emails obtained by The Daily Tar Heel, the University sent requests for proposals to 17 law firms, including Skadden. Only five of the firms were based in North Carolina.
A March 6 memo from Parker to Matthew Fajack, vice chancellor for finance and administration, said the $342,936.23 bill was for “legal services rendered ... for the month of December” and that Parker reviewed and approved the payment.
Despite the invoices being public record, the University will not publicly release an itemized version of Skadden’s bill to precisely identify the “legal services rendered” or explain the monthly “expenses,” often climbing above $10,000, paid to the company .
“We do not receive itemized invoices from Skadden. Invoices are reviewed on Skadden’s secure website,” Gregory said.
Including the $342,936.23 cost for December, Skadden has charged UNC more than $2.7 million from December to May. Gregory said the University has not yet received the bills for June, July and August.
In comparison, the 8-month-long Wainstein investigation cost the University $3.1 million. The single invoice received for the Wainstein report was itemized and made public record by the University.
Both Wainstein’s and Skadden’s teams are paid by the University’s main donation arm, the Chapel Hill Foundation. In May, the foundation published its first 990 form — a yearly financial document required for all 501(c)3 nonprofits — since 2008, after not releasing any budget information for nearly a decade.
A representative from Skadden did not respond with a comment before press time.
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Timeline of Events
Oct. 22, 2014 — UNC publicly releases private investigator Kenneth Wainstein's report in academic improprieties in the former department of African and African-American Studies
The report detailed nearly two decades of fake classes that helped artificially inflate GPAs of student-athletes to keep them eligible
Nov. 6, 2014 — Former football player Michael McAdoo files a class-action lawsuit against UNC
McAdoo's suit claims the University did not provide him a proper education.
Nov. 14, 2014 — UNC sends a request for proposal to Skadden, Arps, Slate, Meagher & Flom
The request said the Wainstein report and other investigations has put the University in two lawsuits with more litigation likely.
Nov. 14, 2014 — Leslie Strohm announces her departure from the University
Longtime General Counsel Leslie Strohm announced that she would leave her post in January to fill a similar role at Louisville University. David Parker, previously associate general counsel, became the interim general counsel. As of Sept. 21, 2015, a search committee has not yet been named to find Strohm's permanent replacement.
Nov. 19, 2014 — Deadline for Skadden's response to UNC's request
Skadden only had three business days to respond to UNC's request for proposal.
Nov. 25, 2014 — The Daily Tar Heel sues UNC
The DTH, along with nine other North Carolina media organizations, sued the University for access to personnel records of employees fired as a result of the Wainstein report.
Dec. 9. 2014 — David Parker signs contract with Skadden
Parker signed a contract with the Skadden, approving the rates of $990 per hour for each partner that will work on UNC's legal matters. The agreed upon associate billing rate ranged from $450 to $975 depending on the experience of the associate working on the matter. UNC has not yet received from the state to retain Skadden.
Dec. 12, 2014 — Judge orders UNC, media organization case to mediation
The Daily Tar Heel, and nine other media organizations, were ordered to mediation with UNC after a superior court judge wanted to give both sides a chance to resolve the case in a non-courtroom setting.
Dec. 22, 2014 — David Parker requests permission for Skadden
Under state law, an agency run by the state, such as UNC, needs the permission of the Governor to hire outside counsel. The Governor must be advised to do so by the state's Attorney General's office. Parker had signed the contract with Skadden nearly two weeks before reaching out to the necessary agencies
Dec. 29, 2014 — UNC tells the state Skadden is coming
According to state Department of Justice spokesperson Noelle Talley, UNC informed her office that a Skadden representative would be at the mediation between UNC and the media organizations the next day. Later, UNC Spokesperson Rick White said Skadden was permitted to be there by the Attorney General's office.
Dec. 30, 2014 — Mediation between UNC, media
Skadden partner Michael Scudder represents, among other legal counsel, the University. The state has yet to officially approve the University's retention of Skadden.
Jan. 9, 2015 — Skadden approved by the Governor’s office
A letter sent by Robert Stephens confirms the hiring of Skadden at the rates agreed upon in the contract David Parker signed in early December. There is no mention of the media organizations' suit against the University in the list of approved cases for Skadden in the final version of the letter.
Jan. 13, 2015 — UNC announces Skadden retention
More than a month after David Parker signed a contract with Skadden, UNC announces its agreement with the New York-based law firm.
March 4, 2015 — Skadden sends first invoice
The first invoice for "legal services rendered" by Skadden is for more than $340,000. The bill said it was for services offered in the month of December — before the Governor's office approved the hire.
March 6, 2015 — Parker approves December Skadden invoice
In a memo from Parker to Vice Chancellor Matthew Fajack, Parker said he has reviewed and approved the invoice from Skadden's December costs.
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