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HomeMy WebLinkAboutR-2008-094 Dodge Settlement AgreementRESOLUTION NO. R-2008-94 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to execute a Release and Settlement Agreement to resolve and settle the claim for damages filed with the Yakima City Clerk by Crystal L. Dodge. WHEREAS, on December 6, 2007, Crystal L. Dodge filed a claim for damages with the City of Yakima Clerk; and WHEREAS, the parties have worked together to mutually resolve and conclude all issues relating to the claim for damages; and WHEREAS, through a mediation process with the assistance of a mediator, a settlement has been reached that will resolve and conclude all claims in the matter, subject to the approval of the Yakima City Council; and WHEREAS, the City Council of the City of Yakima deems it to be in the best interests of the citizens of the', City of Yakima to execute the attached Release and Settlement Agreement to resolve and conclude this claim, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to execute the attached Release and Settlement Agreement relating to the claim for damages of Crystal L. Dodge, and to execute all documents and to authorize the issuance of appropriate funds from the Risk Management Reserve Fund to implement settlement of the claims made by Crystal L. Dodge against the City. ADOPTED BY THE CITY COUNCIL this 10th day of June, 2008. City Clerk Cron -`i avid Edler, Mayor f'A Z006 --7Y RELEASE AND SETTLEMENT AGREEMENT PARTIES THIS RELEASE AND SETTLEMENT AGREEMENT is between Crystal L. Dodge, a single person, claimant (hereafter "claimant"), and the parties being released in this Release and Settlement Agreement: the Yakima Police Athletic League (hereafter "YPAL"), Lexington Insurance Company, the City of Yakima (hereafter "City"), St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, inc. (hereafter "The Travelers Companies"), Cities Insurance Association of Washington (hereafter "CLAW"), Canfield & Associates and Ben Hittle (hereafter "Hittle"). RECITALS 1. Claimant filed a Claim for Damages with the Yakima City 'Clerk on December 6, 2007, alleging injuries and damages related to the events when she was employed by YPAL, including but not limited to during the period November 2005 through June 2006, and to events occurring thereafter that claimant alleges occurred as a result of or related to of her employment at YPAL. The alleged events, during claimant's employment with YPAL and events occurring thereafter relating to YPAL and/or the Yakima Police Department and/or the City of Yakima, and the claimant's other allegations and claims referred to in claimant's Claim for Damages, and any other claims arising out of or related to claimant's employment at YPAL, are hereafter referred to in this Release and Settlement Agreement as "the incidents." All entities, companies and persons being released in this Release and Settlement Agreement deny and have denied that they are liable for injuries or damages to claimant Crystal L. Dodge, including past, present and/or future injuries or damages. 2. A settlement mediation was held on February 22, 2008, before mediator David A. Thorner. The claim did not settle at the mediation session on February 22, 2008, and the mediator continued to serve in the capacity of a mediator thereafter in an effort to reach a settlement resolution of the claim. On May 30, 2008, the parties agreed to settle the case for a total payment to claimant of Two Hundred Thousand Dollars (5200,000.00) (hereafter "said sum"), subject to the approval of the Yakima City Council. The City also agreed to pay David A. Thorner's mediation fee for mediation services during April and May of 2008, and if applicable, June 2008. RELEASE AND SETTLEMENT AGREEMENT - I 3. It is understood and agreed that this settlement is the compromise of disputed claims, including but not limited to those claims asserted in the claim for damages referenced above and those which claimant, as part of this settlement, has elected to forego against YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; and/or against YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', or the City's former, present, or future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; or against the spouse(s), heirs, insurers, attorneys and assigns of Hittle. The payment made herein is not to be construed as an admission of liability on the part of the parties and entities hereby released, including by YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; or by YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', or the City's former, present, or future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; or by the spouse(s), heirs, insurers, attorneys and assigns of Hittle, and that said releasees deny liability therefor. Claimant agrees that this Release and Settlement Agreement is not intended to be admissible against any party, person, or entity or company as an admission of any liability and/ or fault. 4. Claimant and the released parties, companies and entities agree that said sum to be paid herein is in consideration of claimant's agreement not to sue YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; or YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', or the City's former, present, or future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; or the spouse(s), heirs, insurers, attorneys and assigns of Hittle, or to further prosecute the claim. Claimant's release herein broadly encompasses claims of all types, whether past, present or future, known or unknown, RELEASE AND SETTLEMENT AGREEMENT - and/or developed or undeveloped, relating in any way to or arising out of the incidents. 5. Under the Washington Tort Reform Act of 1981, RCW 4.22.060(3), et seq., as amended, and the expressed legislative intent to foster settlements thereunder, this Release and Settlement Agreement is binding between claimant and YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle, and no adjustment is ever to he made in the amount paid to claimant. 6. Claimant understands that she may have suffered injuries or damages as a result of or arising out of the incidents that are unknown at the present and that unknown complications may arise in the future. Claimant acknowledges that the sum paid in consideration of this Release and Settlement Agreement is intended to and does release and discharge any and all claims, including past, present or future claims, whether known or unknown, by claimant against YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle, or against YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', or the City's former, present, or future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; or against the spouse(s), heirs, insurers, attorneys and assigns of Hittle, including such unknown or future complications, whether suspected or unsuspected. The parties hereto have specifically bargained for and contemplated the assumption of risk by the undersigned claimant for future unknown injuries caused by or related in any way to the incidents. 7. In entering into this Release and Settlement Agreement, claimant represents that she has relied on the advice of her attorney and that the terms of this Release and Settlement Agreement have been completely read and explained to her by her attorney and that those terms are fully understood by claimant. AGREEMENT 1. h1 consideration of the payment of the sum of Two Hundred Thousand Dollars ($200,000.00) (hereafter "said sum"), made payable to "William D. Pickett Law RELEASE AND SETTLEMENT AGREEMENT - 3 Office Trust Account, claimant's attorney", and/or as claimant's attorney William D. Pickett directs in writing by June 4, 2008, to Robert C. Tenney regarding any portion of said sum that claimant elects to have paid to a structured settlement vehicle, claimant agrees not to further prosecute the above -referenced claim or any potential claim relating to her past, present and/or future injuries and/or damages and/or any other action relating to or arising from the incidents, whether known or unknown, developed or undeveloped. 2. In further consideration of the payment of said sum, claimant agrees with YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CLAW, Canfield & Associates and Hittle that claimant, her spouse(s), representatives of her estate, her beneficiaries, heirs, children, grandchildren, successors and assigns, will never, by reason of any matter or cause heretofore occurring or by any reason of any matter or cause hereafter occurring relating to or arising out of claimant's alleged injuries and/or damages from the incidents, whether said matter or cause is • known or unknown, developed or undeveloped, institute suit or action at law or in equity or otherwise execute any judgment against YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; or against YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', or the City's former, present, or future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department, or any investigators retained by the City; or against the spouse(s), heirs, insurers, attorneys and assigns of Hittle, nor in any way aid in the prosecution against any of them of any claim, demand or action for damages, death, costs, loss of service, support or consortium, expenses, attorneys fees, or compensation for loss to person, property, or both, including wrongful death claims, whether developed or undeveloped, related to or arising in any way from the incidents. 3. In further consideration of the payment of said sum, claimant agrees, represents and warrants that claimant realizes and acknowledges, and agrees to assume the risk, that actual matters now unknown, unanticipated or misunderstood by claimant in connection with claimant's alleged injuries and/or damages from the incidents may have given or hereafter give rise to causes of action, claims, losses and RELEASE AND SETTLEMENT AGREEMENT - 4 expenses which are presently unknown, unanticipated or 'unsuspected, or misunderstood, and further agrees, represents and warrants that the releases in this Release and Settlement Agreement have been negotiated and agreed to in light of that realization that claimant nevertheless intend to release, discharge; and acquit YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; and YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', and/or the City's former, present, or future 'elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; and the spouse(s), heirs, insurers, attorneys and assigns of Hittle, from any such unknown or unsuspected causes of action, claims, demands, debts, controversies, damages, costs, attorneys fees, losses and expenses which in any way are related to claimant's injuries or damages from the incidents or arising from the incidents, whether past, present or future and/or known or unknown. 4. In further consideration of the payment of said sum, the claimant covenants and agrees with YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle that claimant, claimant's spouse(s), representatives of claimant's estate, and claimant's heirs, children, successors and assigns, will defend, indemnify and hold harmless YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine. Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; and YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', and/or the City's former, present and future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors, and assigns, and the City of Yakima Police Department; and the spouse(s), heirs, insurers, attorneys and assigns of Hittle, as to any claims relating to the alleged injuries or damages of claimant related to or resulting or arising out of the incidents which may be made against any or all of them by the parents or children of, the estates of, or the personal representative(s) of or the beneficiaries of claimant, including but not limited to all costs and attorneys fees incurred in the defense of such action. The released parties and entities retain the right to monitor the defense of any such claim or action. RELEASE AND SETTLEMENT AGREEMENT - 5. The parties agree that this is a final release and settlement of the claimant's claims against YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle. The parties further believe that this Release discharges YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle from all liability, including for contribution or indemnity, and extinguishes all such claims, and that no other person or entity is entitled to bring contribution, indemnity, or other claims against YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; or against YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine hlsurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', and/or the City's former, present and future. elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors, and assigns, and the City of Yakima Police Department; and/or against the spouse(s), heirs, insurers, attorneys and assigns of Hittle, related to or arising from the incidents. However; in the event any such claims are ever asserted by any person or entity, in further consideration of the payment of said sum, the claimant agrees to defend, indemnify and hold harmless YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle; and YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers Companies', CIAW's, Canfield & Associates', and/or the City's former, present and future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; and the spouse(s), heirs, insurers, attorneys and assigns of Hittle, from any and all claims, third party claims, or contribution claims that may be made by any other person or entity, relating to or arising out of the incidents, including but not limited to all costs and attorneys fees incurred in the defense of such action. The released parties and entities retain the right to monitor the defense of any such claim or action. The parties agree that claimant shall not defend, indemnify nor hold harmless any released party from claims or causes of actions that may arise between the released parties. 6. In further consideration of the payment of said sum, the claimant agrees to indemnify and hold harmless YPAL, Lexington Insurance Company, the City, RELEASE AND SETTLEMENT AGREEMENT - 6 St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CLAW, Canfield & Associates and'Hittle; and YPAL's, Lexington Insurance Company's, St. Paul Fire and Marine Insurance Company's, St. Paul/Travelers', The Travelers • Companies', CIAW's, Canfield & Associates', and/ or the City's former, present and future elected officials, officers, attorneys, employees, insurers, agents, volunteers, participants, successors and assigns, and the City of Yakima Police Department; and the spouse(s), heirs, insurers, attorneys and assigns of Hittle, from any and all liens for medical services and related expenses arising now or in the future from the alleged injuries of. claimant resulting from the incidents and from the subrogation claim of any third party arising from the alleged injuries of claimant relating to "the incidents, which agreement includes, but is not limited to medical expenses, any Medicare lien(s), workers compensation, ' PIP payments, disability payments, Department of Labor & Industries' payments, or any other payment or benefit which might afford a third party any claim against the consideration paid for this release. Claimant agrees to be responsible to satisfy all liens and any outstanding subrogation claims. The claimant, through her attorney William D. Pickett, shall satisfy any outstanding medical bills and any other lien(s) or creditors' claims concurrent with the disbursement to claimant's attorney." The claimant warrants that all lienable expenses, and all subrogation claims, and all claims of any other persons or entities legally entitled to share in the proceeds of the settlement have been paid, or will be paid, from the proceeds of the settlement. The claimant agrees that claimant will pay any attorney fees and costs that claimant has incurred relating to the incidents and/or this matter. 7. It is specifically understood and agreed that this s Release and Settlement Agreement is the 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 YPAL, Lexington Insurance Company, the City, St. Paul Fire and Marine Insurance Company, St. Paul/Travelers, The Travelers Companies, CIAW, Canfield & Associates and Hittle and the parties 'hereby released, and that said releasee(s) deny liability therefor. This Release arid Settlement Agreement is not intended to be admissible against any party or anyone else as an admission of any liability and/ or fault sin any matter. Notwithstanding the immediately preceding sentence, this Release. and Settlement Agreement, if. otherwise admissible, maybe introduced into evidence at any proceeding • between or among the parties to enforce its terms. RELEASE AND SETTLEMENT AGREEMENT - 7 8. By executing this release claimant affirms her intention to release all of her claims, both known and unknown, suspected or unsuspected, vested or contingent, and/or past, present or future, relating in any way to or arising out of the incidents, whether occurring before or after the effective date of this agreement. IN WITNESS WHEREOF, this Release and Settlement Agreement has been signed by claimant Crystal L. Dodge. DATED this day of June, 2008. Crystal L. Dodge STATE OF WASHINGTON ) ss. COUNTY OF YAKIMA On this day personally appeared before me Crystal L. Dodge, to me known to be the individual described herein and who executed the foregoing instrument, having acknowledged to me that the same was signed by her as a' free and voluntary act and deed for the uses and purposes therein mentioned. WITNESS my hand and official seal this ?,ca"day of June, 2008. • 4 :41x PRINT INT NAME: Ui%�,4 / .Zian e NOTARY PUBLIC in and for the State of Washington, residing at .21.4.-) My commission expires: 4,2 /j 9/,'6' RELEASE AND SETTLEMENT AGREEMENT - 8 CITY OF YAKIMA ATTEST: CClerk CITY CONTRA r NO: RESOLUTION NO: RELEASE AND SETTLEMENT AGREEMENT - 9 • • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of June 10, 2008 ITEM TITLE: authorizing and directing the City Manager of the City of Yakima to execute a Release and Settlement Agreement to resolve and settle the claim for damages filed with the Yakima City Clerk by Crystal L. Dodge. SUBMITTED BY: City Manager's Office and Legal Department CONTACT PERSON/TELEPHONE: Dick Zais, City Manager, 575-6040 Dave Zabell, Assistant City Manager, 575-6040 Helen A. Harvey, Senior Assistant City Attorney, 575-6030 SUMMARY EXPLANATION: This matter is on for consideration of a Resolution authorizing the City Manager to execute a Release and Settlement in the claim for damages filed by Crystal L. Dodge. The case settled for $200,000 on May 30, 2008, subject to the approval of the Yakima City Council. The insurance carrier's contribution toward the total settlement amount is $125,000 and the City's contribution is $75,000. This case was settled in mediation with the assistance of mediator David Thorner of Thorner, Kennedy & Gano of Yakima. David Thorner is an experienced attorney and mediator who has served as a mediator in excess of 2,000 cases over a period of 20 years. A final settlement between the parties was reached, subject to the approval of the Yakima City Council on June 10th. Continued on Page 2 Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source City's Insurance Carrier - $125,000; Risk Management Reserve Fund - $75,000 APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution. BOARD/COMMISSION/COMMITTEE RECOMMENDATION: COUNCIL ACTION: Page 2 Attached is a copy of the "Final Mediated Settlement Agreement" dated May 30, 2008. It was signed on May 30, 2008, by Crystal Dodge, her attorney William Pickett, and attorney Bob Tenney. The contingency of approval by the Yakima City Council is discussed in the last sentence of the attached Final Mediated Settlement Agreement ("This settlement is only contingent on the approval of the Yakima City Council which shall be recommended by the undersigned attorney [Robert C. Tenney] and City management.") Also attached is a copy of the Release and Settlement that is recommended for execution by the City Manager. On June 3, 2008, Crystal Dodge signed the Release and Settlement Agreement releasing all of her claims arising from her alleged claim of disability discrimination by an officer, and from her former employment at the Yakima Police Athletic League. The background of the claim for damages is as follows: on December 6, 2007, Crystal L. Dodge, represented by attorney William Pickett, filed a damage claim in the amount of $4,000,000 with the Yakima City Clerk. The claim arose out of Crystal Dodge's claim that while she was an employee at the Yakima Police Athletic League, she was discriminated against based on her circumstances by a Yakima police officer. The alleged discrimination occurred from November 2005 through the Spring of 2006. Ms. Dodge left the employment of the Yakima Police Athletic League in June 2006. When the City learned of the allegation of discrimination through a "whistleblower" complaint, the City ordered an investigation into the alleged discrimination. The outside investigation conducted by the Seabold Group found that one police officer had made fun of Ms. Dodge and treated her in an inappropriate manner. The investigation of the Seabold Group also concluded that the evidence did not establish that Chief of Police Granato's actions toward Ms. Dodge were in retaliation for her complaints about the officer. Through the mediation process, the case has settled, subject to the approval of the Yakima City Council. Staff respectfully requests that the City Council authorize and direct the City Manager of the City of Yakima to execute the Release and Settlement Agreement to resolve and settle the claim for damages of Crystal L. Dodge. • 05/30/2008 11:58 5099721826 WILLIAM D PICKETT PAGE 02 MAL MEDIATED SETTLEMENT AtionakEEMENT Date: May 30, 2008 W , tlae undersigned panties, hereby dza`er intra this bindinS a$re,e3'ner t to settle any and WI claims of Crystal Lynn Dodge, a single 'amara, Claimant, against tIle City of Yakima, s municipal corpuza.liun, and aim l'n ma ?oil= At ietic: Lcaoue, liVe.shington. Stagy saon-pmflt corporation, their agents anti envir+yees, and ClAVU and The Travelers insurance Cornparai far injuries and all damages arising cuil of incidents and the employment of Claimant by the parties xele2�ed, ocazring in tha City of Yaktr a, Y a1 una County, Washington betwon 2004 and 2006, for the total scam of T 0 Th ndred Thousand Dollars (S200,000 .00) present value. Payment shall be ramie to the Law office of William D. Pickett Trust Account (Ta..xID No. 63- 143108I) not Iater than Jana 1 di, 2008; provided that Claimant reserves the right to structure a portion] of this settiement through Ringer Associate (Diane Bendi .ezx) at no additional cost to the released parties, Mr. Piokott sha.11 advise' Mr. Ternsy a to the amount to be efruct,,irod ir. writing by ,]uric 4, 2006. Te amount stru.otured shall be paid by The Travelers to the =airy directed byRing]cx, and the belartca''slasll be paid to the Pickett'l:krist Account. Claimant and her attorney area to .1;e3 rriapcmsivbtda to aal.scry4I1lions cad a.ey octstaradins subrogation claims, and to exectatc &irpr+opri are fbll and Hazal roleascs and confizniirig duaunatzte. The said docrtmects shall be prepared by 'Mr. Tenney to be appro ed b Nix. Picket. Any disputes as to said documents will be resolved by David A. Tborncr. as the foal binditta arbitrator. '1'fi:erne t may be signed and.7svcctL.itLl by counterpart faoisimile. This seal hent ae1y ott igeat on the approval of the N4c.izna City Council which shall bcwean: vended byits undersigned atttornay and City znamagemcnt, Wlritam, , ;kris ot{, Attcmoy for Claimant Robert C, Tenney, Attorzaor City of Yakima and isthie n behalf cif The Travelers insuranncc Co tpanii=