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HomeMy WebLinkAboutR-2015-019 Settlement of Damage Claim Filed by James Steven BrownRESOLUTION NO. R-2015-019 A RESOLUTION authorizing the City Manager of the City of Yakima to consent to a settlement entered into by the City of Yakima ("City") and Cities Insurance Association of Washington ("CIAW") to resolve and settle the damage claim filed by James S. Brown WHEREAS, on July 30, 2014, a damage claim was filed by James Steve Brown with the City of Yakima Clerk's Office, and WHEREAS, through negotiations, a settlement was reached by the City of Yakima and CIAW and the claimant 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 amount of the settlement is $150,000, of which the City will pay approximately $64,050, and the remaining settlement amount of approximately $85,950 is to be paid by CIAW and the City's insurance risk pool CIAW, 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 the City of Yakima and CIAW and the claimant to resolve and conclude the damage claim, 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 City of Yakima and CIAW to resolve and settle the damage claim filed by James Steve Brown, which settlement will be paid by the City of Yakima and CIAW. ADOPTED BY THE CITY COUNCIL this 3rd day of February, 2015. Micah Cayrr'ey, Mayor ATTEST: SETTLEMENT AGREEMENT 1. Release For the consideration recited below, James "Steve" Brown and Angie Brown, husband and wife, and the, marital community composed thereof, and their representatives, beneficiaries, heirs, children, grandchildren, executors, administrators, successors and assigns (hereinafter "Releasing Parties"), forever release the City of Yakima, Cities Insurance Association of Washington ("CIAW"), and all their respective past, present, and future agents, employees, officers, directors, elected and appointed officials, assigns, successors, attorneys and related entities (hereinafter "Released Parties") from all claims, rights and causes of action, which may ever be asserted by the Releasing Parties, whether presently known or unknown, presently asserted or unasserted, presently vested or contingent, which in any way arise out of or are related to any incidents, acts or omis- sions between the Releasing Parties and the City of Yakima and its past, present or future elected or appointed officials, officers, employees, and agents, including but not limited to: (1) all matters arising from or related to James "Steve" Brown's employment with the City of Yakima, his termination from employment with the City of Yakima, or his reinstatement of employment with the City of Yakima; (2) all those matters which are or could have been asserted as a claim by Angie Brown; (3) all those matters which are or could have been the subject of the Claim for Damages filed by James Brown on or about July 30, 2014; (4) all matters which are or could have been the subject of Equal Employ- ment Opportunity Commission Charge Number 551-2014-01511; and (5) any other incidents, acts or omissions involving the Releasing Parties and the Released Parties occurring through the date this Settlement Agreement is signed. This release includes all claims, rights and causes of action under federal, state, or local law, including, but not limited to, whether based in statute, regulation, code, ordinance, tort, contract, equity or otherwise, and specifically including by way of illustration, but not limited to, all claims under the United States Constitution, the Washington State Constitution, Age Discrimination and Employment Act, Title VII of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), Older Workers Benefit Protection Act, and the Washington Law Against Discrimination (RCW Chapter 49.60). This release covers any and all past, present and future injuries, damages or losses known or not known to the Releasing Parties, but which may later develop or be discovered in connection with the above referenced matters, including, but not limited to, all claims of Settlement Agreement - 1 of 4 the type set forth above, for violation of civil rights, for retaliation, for personal injuries, for loss of income, for attorney's fees, for costs, and for loss of consortium. 2. Consideration The consideration for the aforementioned settlement and the release contained in paragraph 1 above includes the following: 1) Payment by CIAW to the Trust Account of the Law Office of Hector Leal the sum of One Hundred Fifty Thousand Dollars ($150,000), payable for the benefit of the Releasing Parties; 2) Restoration of 649.75 hours of leave in one of two ways at the op- tion of the Releasing Parties: A) Sick Leave: Use the hours as sick leave at full hours (649.75) which can be used for scheduled pre- ventative health and dental appointments, unscheduled personal/family illness, or long-term illness or injury; or B) Paid Time Off: Convert 649.75 hours to paid time off (PTO) at the rate of 70% which totals 453.83 hours. Paid time off is a leave program for nonrepre- sented City employees which combines sick leave, va- cation, and personal holidays into one leave bank. 3) Tax liability, if any, on the proceeds of the settlement sum shall be paid by the Releasing Parties, and the Releasing Parties agree to hold the City of Yakima and CIAW harmless and to indemnify them from any tax consequences of this settlement. The duty to indemnify and hold harmless the City of Yakima and CLAW includes, but is not limited to, any required employer contribution or payment if any of the settlement proceeds are determined to be taxable income as to the Releasing Parties or their law firms. 4) Employer shall not discriminate, intimidate, harass, threaten, retali- ate or take any adverse employment action against Employee be- cause he exercised his right to submit a tort claim, EEOC charge or otherwise complained about the facts and circumstances of his sepa- ration from employment with the City in November of 2013. Any Settlement Agreement - 2 of 4 such prohibited retaliation includes adverse actions independent of the workplace. Examples of kind of conduct that may be considered retaliatory under this Agreement includes denial of promotion as well as material changes in the terms and conditions of employment such as work assignments. An employee who retaliates against Em- ployee may be subject to discipline up to and including termination of employment. 5) Settlement is contingent on City Council approval at its next meeting on Tuesday, February 3, 2015. If City Council approval of the set- tlement is denied, the Released Parties hereby agree to not contend the lawsuit filed by the Releasing Parties on or after February 5, 2015, is untimely. 3. Indemnification for Subrogation and Lien Claims, and Hold Harmless The Releasing Parties represent 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 this settlement have been paid, or will be paid or otherwise resolved from the proceeds of this settlement. The Releasing Parties agree to defend, indemnify and hold harmless the Released Parties from and against all lien and subrogation claims, if any, including all costs and attorney's fees incurred in the defense of such claims. 4. Warranty of Capacity to Execute Agreement All signatories to this Settlement Agreement certify and warrant that they are fully authorized to enter into this agreement and bind themselves and the parties thereto. 5. Governing Law This Settlement Agreement shall be construed and interpreted according to the laws of the State of Washington. The venue of any action necessary under this Settlement Agreement shall solely be in Yakima County, Washington. 6. Denial of Liability This Settlement Agreement expresses the full and complete settlement of all claims. It is expressly agreed that liability for all such claims is denied by the Released Parties as is any fault relating to the matters described. It is agreed and understood that this settlement Settlement Agreement - 3 of 4 is a compromise of disputed claims. Regardless of the adequacy of the above considera- tion, acceptance of this release shall not operate as an admission of liability on the part of the Released Parties. 7. Consultation With Counsel All signatories to this Settlement Agreement have read this Settlement Agreement and fully understand the terms. They have had an opportunity to seek independent legal counsel regarding the legal implications of this Settlement Agreement. James "Steve" Brown, Releasing Party To ' ' 'Rour.-, City . ager, on Behalf of the S ty of Yakima Settlement Agreement - 4 of 4 Dated: February 3 , 2015 Dated: February .3 , 2015 Dated: February I' , 2015 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Distributed att the Meeting •1 - Item No. For Meeting Of February 3, 2015 ITEM TITLE: Resolution authorizing the City Manager of the City of Yakima to consent to a settlement entered into by the City of Yakima ("City") and Cities Insurance Association of Washington ("CIAW") to resolve and settle the damage claim brought by James S. Brown 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 the City of Yakima and CIAW to resolve and settle a damage claim filed by James Steve Brown on July 30, 2014, and to settle all claims by the claimant. The damage claim filed by James Steve Brown alleged $1,561,930 in damages. The claim against the City of Yakima was settled by the City and CIAW, subject to the presentation of the settlement before the Yakima City Council. A copy of the Release of All Claims is attached. The amount of the settlement is $150,000, of which the City will pay approximately $64,050. The remaining settlement amount of approximately $85,950 is to be paid by CIAW and the City's insurance risk pool CIAW Resolution X Ordinance Contract Other (Specify) Contract Contract term: Start date: End Date or Upon Completion: Mail to (name and address): Phone: Financial Impact/Item Budgeted: Yes X No Amount: Funding Source/Fiscal Impact: Risk Management Insurance required: Strategic Priority (choose only one): economic development , public safety improve the built environment public trust and accountability X , partnership development STAFF RECOMMENDATION: Adopt Resolution