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HomeMy WebLinkAboutR-2018-003 Settlement of Lawsuit Brought by Lorena Arias for the Estate of Rocendo AriasRESOLUTION NO. R-2018-003 A RESOLUTION authorizing consent to a settlement entered into by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the lawsuit brought by Lorena Arias, Administrator for the Estate of Rocendo Arias. WHEREAS, on November 22, 2016, a lawsuit was filed in U S District Court for the Eastern District of Washington Case No CV -16 -3213 -SAB, entitled Lorena Arias, Special Administrator for the Estate of Rocendo Arias v Casey Gillette, Yakima Police Chief Dominic Rizzi, City of Yakima Police Department, and the City of Yakima; and WHEREAS, through a mediation, a settlement was reached by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance and the plaintiff to resolve and conclude all claims in the matter; and WHEREAS, in the settlement agreement, liability for all such claims is denied by the entities being released, and WHEREAS, the entire amount of the settlement is to be paid by CIAW and reinsurer Munich Reinsurance, and the City of Yakima is paying no money toward settlement of the case, and WHEREAS, the City Council of the City of Yakima deems it to be in the interest of the City to authorize the City Manager to consent to a settlement entered into by CIAW and Munich Reinsurance and the plaintiff to resolve and conclude the lawsuit; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is authorized to consent to the settlement entered into by Cities Insurance Association of Washington and Munich Reinsurance to resolve and settle the lawsuit brought by Lorena Arias, Special Administrator for the Estate of Rocendo Arias, which settlement will be paid by CIAW and Munich Reinsurance ADOPTED BY THE CITY COUNCIL this 2nd day of January, 2018 ATTEST SETTLEMENT AND FULL RELEASE WHEREAS, LORENA ARIAS, Special Administrator of the Estate of Rocendo Arias, (hereafter referred to as "Plaintiff") brought claims against Casey Gillette, Yakima Police Department, and the City Of Yakima (hereafter referred to as Released Parties) in the lawsuit captioned, Lorena Arias, Special Administrator of the Estate of Rocendo Arias v. Casey Gillette, Yakima Police Department and the City of Yakima, filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB; and WHEREAS, Released Parties appeared through counsel of record; and WHEREAS, Plaintiff asserted constitutional violations, civil rights violations, economic damages, common law torts, wrongful death, personal injuries, general damages, punitive damages, and claims for attorney's fees and costs in the above -referenced action arising out of the incident described in plaintiff's First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB; and WHEREAS, Released Parties deny they did anything wrong and by entering into this agreement do not concede they have any liability, and specifically deny any liability whatsoever for Plaintiff's claims; and WHEREAS, Plaintiff has authority to enter into this Settlement and Full Release with regard to all special damages, monetary damages, general damages, and all personal injuries, constitutional violations, civil rights violations, or torts, known or unknown, that are claimed or could be claimed by plaintiff and any and all existing subrogated interest -holders, all lienholders, including all liens of any insurer, and all medical care providers of any kind; and WHEREAS, the identified parties to this agreement desire to avoid the expense, burden and uncertainty of continued litigation and hereby seek to fully resolve this matter. Page 1 of 5 ORIGIN L NOW, THEREFORE, IT IS HEREBY agreed as follows: 1. In consideration of the total payment to Plaintiff by the City of Yakima's insurers, Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance, in the amount of Five Hundred Thousand Dollars ($500,000.00), it is agreed that Plaintiffs claims, in their entirety, as asserted against Released Parties Casey Gillette, Yakima Police Department, and the City Of Yakima in Plaintiffs First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB shall be dismissed with prejudice and released without any further cost or payment to any party. This settlement is subject to approval by the City of Yakima City Council, and will be promptly considered by City Council. Payment of this settlement shall also be held in trust by the attorneys for Plaintiff pending approval of the terms of this settlement by the assigned Guardian ad Litem, Richard Johnson, and/or by the presiding judge, Stanley A. Bastian, of the United States District Court for the Eastern District of Washington. 2. Plaintiff, her successors, assigns, representatives, agents, employees, attorneys, children, heirs, Rocendo Arias, Jr., Adriana Aceves, spouses, beneficiaries, insurers and any person or persons acting by, through or for her or the Estate of Rocendo Arias, hereby releases, acquits and forever discharges Released Parties and any of their successors, assigns, former, present or future officials, officers, representatives, agents, employees, attorneys, spouses, children, heirs, insurers, Clear Risk Solutions, Cities Insurance Association of Washington ("CIAW"), Munich Reinsurance, and any person or persons acting by, for or through them from all liability, actual or potential, for all claims, damages or demands whatsoever in law or in equity which Plaintiff has, has ever had, may have, or has claimed, or now claims arising from the allegations in the First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Page 2 of 5 Yakima, Cause No. 1:16 -03213 -SAB. 3. This Settlement and Full Release is expressly intended to cover all damages, whether known or unknown, asserted or unasserted, that are claimed or could have been claimed by Plaintiff individually and on behalf of the Estate of Rocendo Arias (including, but not limited to, for any and all heirs, survivors, dependents or beneficiaries of Rocendo Arias and/or the Estate of Rocendo Arias, including, but not limited to, Rocendo Arias, Jr. and Adriana Aceves) in the above - referenced action. The damages may be more severe or different than those known at this time. These damages include any and all personal injuries, special damages, general damages, punitive damages, attorney's fees, costs, economic and non -economic losses alleged by Plaintiff and/or the Estate of Rocendo Arias, and any and all property damage or other damages associated with the First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB. 4. This Settlement and Full Release is made and entered into as a free and voluntary act and has been done only after Plaintiff consulted with her attorneys, William Pickett and Vito de la Cruz. 5. This Settlement and Full Release contains the entire agreement between the parties, and the terms of this Release are contractual and not a mere recital. 6. Plaintiff, through her attorneys, shall promptly move the U.S. District Court for approval of this settlement, which she and her attorneys will recommend. 7. The undersigned have full authority to enter into this Settlement and Full Release. 8. The parties agree that any and all actions necessary to secure dismissal with prejudice of Plaintiffs' claims in this lawsuit against the Released Parties shall be taken by the parties and that each party shall bear its own cost and expense incurred in connection with such Page 3 of 5 claims and the dismissal thereof. 9. Plaintiff agrees to hold Released Parties Casey Gillette, Yakima Police Department, and the City Of Yakima and their spouses, heirs, agents, employees, attorneys, insurers, Clear Risk Solutions, Cities Insurance Association of Washington ("CIAW"), Munich Reinsurance, or representatives thereof (hereinafter Indemnitees) free and harmless from any and all claims relating to Plaintiff's and/or Rocendo Arias' alleged injuries and damages that have been or may be asserted for tortfeasor medical liens, liens of any branch of the government, liens of any and all of Plaintiffs and/or Rocendo Arias' insurers, liens of any insurers who may be responsible for payment of Plaintiff's and/or Rocendo Arias' medical bills, liens for lost income, liens of any and all of Plaintiff's attorneys, and liens for any and all claims for doctors, hospitals, or other medical bills, lost wages or any other service (including non-medical service) rendered to Plaintiff, the Estate of Rocendo Arias, and/or Rocendo Arias arising out of the matters alleged in the First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB, whether such claims be based on the U.S. Constitution, contract, tort or any other theory of law. Plaintiff is solely responsible for satisfying any and all liens and outstanding subrogation claims. 10. Plaintiff also agrees to pay Indemnitees any costs or attorneys' fees incurred to establish an Indemnitees' right of indemnity as set forth herein, including any costs or fees which may be incurred arising out of any lien with regard to Plaintiff's, the Estate of Rocendo Arias and/or Rocendo Arias' injuries or any prior attorneys retained by Plaintiff as related to the incident described in Plaintiff's First Amended Complaint For Damages filed in the United States District Court for the Eastern District of Washington at Yakima, Cause No. 1:16 -03213 -SAB. 11. It is specifically understood and agreed that this Settlement and Full Release is the Page 4 of 5 compromise of a disputed claim and that the payment made herein is not to be construed as an admission of liability on the part of the Released Parties and that the Released Parties deny liability therefor. This Settlement and Full Release is not intended to be admissible against any party or anyone else as an admission of any liability and/or fault in any matter. Notwithstanding the immediately preceding sentence, this Settlement and Full Release, if otherwise admissible, may be introduced into evidence at any proceeding between or among the parties to enforce its terms. DATED thi �k day of December, 2017. ANY): LO i ' A ARIAS, Special Administrator of the Estate of Rocendo Arias STATE OF WASHINGTON ) . ss. COUNTY OF ) On this GOTS day of beCe rn be r , 2017, before me, a Notary Public, personally appeared LORENA ARIAS to me known to be the individual described herein, and who executed the foregoing instrument and to me acknowledged that she voluntarily executed the same. NOTARY PUBLIC in and or ' e State of Washington, residing at J j Mai kArA My Commission Expires: 05 -1 9 - 7.0 1-( Page 5 of 5 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 Item No. 7.D. For Meeting of: January 2, 2018 ITEM TITLE: Resolution authorizing consent to a settlement entered into by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the lawsuit brought by Lorena Arias, Administrator for the Estate of Rocendo Arias SUBMITTED BY: Helen A. Harvey, Senior Assistant City Attorney SUMMARY EXPLANATION: This matter is on for consideration of a Resolution authorizing the City Manager to consent to a settlement entered into by CIAW and reinsurer Munich Reinsurance to resolve and settle the lawsuit filed on November 22, 2016, in U.S. District Court for the Eastern District of Washington Case No. CV -16 -3213 -SAB entitled Lorena Arias, Special Administrator for the Estate of Rocendo Arias v. Casey Gillette, Yakima Police Chief Dominic Rizzi, City of Yakima Police Department, and the City of Yakima, and to settle all claims by the plaintiff. The settlement also will be presented by the plaintiff to the court for approval as the minor son of Rocendo Arias has a guardian ad litem. The claims against the defendants were settled by CIAW and Munich Reinsurance through mediation with mediator Steve Scott from Judicial Dispute Resolution in Seattle, subject to the presentation of the settlement before the Yakima City Council at a City Council business meeting. A copy of the Settlement Agreement is attached. The entire settlement amount is to be paid by CIAW and the City's insurance carrier Munich Reinsurance. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: City Manager Adopt Resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description D Resolution D contract Upload Date 12/19/2017 12/22/2017 Type Resolution Cor Memo 2