HomeMy WebLinkAbout06/19/2018 06I Settlement of Lawsuit Brought by Ali Akbar Rezaie-Tirabadi and Juana Rezaie-TirabadiITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
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Item No. 6.1.
For Meeting of: June 19, 2018
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 Ali Akbar
Rezaie-Tirabadi and Juana Rezaie-Tirabadi
Jeff Cutter, City Attorney
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 by Ali Akbar Rezaie-Tirabadi and Juana M. Rezaie-Tirabadi on October 24, 2017, in
Yakima County Superior Court Case No. 17-2-03831-39 entitled Ali Akbar and Juana M. Rezaie-
Tirabadi, d/b/a Vida Home Gallery v. City of Yakima, and to settle all claims against the City of
Yakima by the plaintiffs. In their lawsuit, the plaintiffs alleged damages at 113 E. Yakima Avenue,
Yakima from a water main break that occurred on October 25, 2014, on E. Yakima Avenue
between East First and Second Streets.
The claims against the City were settled by CIAW and Munich Reinsurance through mediation
with mediator Gary N. Bloom of Harbaugh and Bloom, P.S., subject to the presentation of the
settlement before the Yakima City Council at a City Council business meeting. The global
settlement includes the plaintiff's property insurance provider and resolves all claims by or against
the property insurance provider as well. A copy of the CR2A Settlement Agreement is attached
and the final Release and Settlement Agreement releasing the claims against the City of Yakima
will be provided to Council before the meeting. Previous payments were made by the City to the
claimants on the claim in the amount of $75,872.69. The additional mediated settlement amount
is $214,000.00, which entire amount is to be paid by CIAW. The total settlement amount on
behalf of the City is $289,872.69, which includes the previous payments of 75,872.69. The City
of Yakima is paying no money toward the additional settlement amount of $214,000.00. The
global settlement includes a total payment to plaintiff Rezaie-Tirabadi from the property insurance
provider in the amount of $214,000.00.
ITEM BUDGETED:
STRATEGIC PRIORITY:
Yes
NA
APPROVED FOR
SUBMITTAL:
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description
O Resdution
O Settlement Agreement
Upload Date
6/15/2018
6;15/2018
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Type
Resolution
Backup Material
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RESOLUTION NO. R -2018-
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 Ali Akbar Rezaie-Tirabadi and Juana
Rezaie-Tirabadi.
WHEREAS, on October 24, 2017, a lawsuit was filed in Yakima County Superior Court
Case No. 17-2-03831-39, entitled Ali Akbar and Juana M. Rezaie-Tirabadi, d/b/a Vida Home
Gallery v. City of Yakima; and
WHEREAS, through a mediation, a settlement was reached by Cities Insurance
Association of Washington ("CIAW"), Munich Reinsurance and the plaintiffs to resolve and
conclude all claims against the City of Yakima in the matter, subject to the approval of the Yakima
City Council; and
WHEREAS, the mediated settlement also resolved a claim by plaintiff Rezaie-Tirabadi
brought against plaintiff's property insurance provider, resulting in the attached global settlement
of all claims that were or that could have been raised by the several parties; and
WHEREAS, in the global settlement agreement, liability for all such claims is denied by
the entities being released; and
WHEREAS, previous amounts had been paid by the City to the claimants on the claim in
the amount of $75,872.69; an additional amount of $214,000.00 was agreed to at the mediation,
which additional amount is to be paid by CIAW and Munich Reinsurance; the City of Yakima is
paying no money toward the additional settlement portion of $214,000.00; and
WHEREAS, the property insurance provider had previously paid plaintiff Rezaie-Tirabadi
$178,000.00 for claimed property damages; at mediation the plaintiff's property insurer agreed
to pay an additional $36,000.00 as their part of the total global settlement value; and
WHEREAS, the total settlement paid by the City to the plaintiff is in the amount of
$289,872.69, which includes the prior payments to the claimants in the amount of $75,872.69;
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, Munich
Reinsurance, the plaintiff's property insurer and the plaintiffs 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 against the City of Yakima brought by Ali Akbar Rezaie-Tirabadi and Juana M. Rezaie-
Tirabadi, together with any and all claims that any of the several parties to the global settlement
may have had against any other party thereto.
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ADOPTED BY THE CITY COUNCIL this 19th day of June, 2017.
ATTEST: Kathy Coffey, Mayor
Sonya Claar Tee, City Clerk
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CR2A SETTLEMENT AGREEMENT
Vida Home Gal ery v. Ohio Security Insurance Company, a foreign insurance
corporation; Liberty Mutual Insurance, a foreign insurance corporation;
Ali Akbar and Juana M. Rezaie Tirabadi d/b/a Vida Home Gallery v. City of Yakima, a
political subdivision of the State of Washington.
On June 14, 2018, following mediation, the above -referenced case settled in accordance
with the following terms and conditions:
1. Ohio Security Insurance Company/Liberty Mutual Insurance (Liberty Mutual)
and City of Yakima, collectively, will make a lump sum cash payment to Ali
Akbar and Juana M. Rezaie Tirabadi, Vida Home Gallery (Vida Home) in the
amount of $250,000. This payment is a "new money" payment, over and above
any previous payments made to Vida Home by either Liberty Mutual or City of
Yakima.
2. Vida Home will take no affirmative steps to publish or otherwise make known
the amount, terms or conditions of this settlement. The parties to this
settlement understand that the City of Yakima is a public entity and can neither
request nor require that this settlement payment and the terms thereof be
kept confidential.
3 To consummate this settlement, appropriate release documents will be
executed by the parties and Stipulations and Orders of Dismissal with
Prejudice, in both the U. S. Eastern District of Washington federal court
litigation and the Yakima Superior Court state court litigation will be entered.
The parties further understand and agree that the release documents will be
in the broadest form possible so as to assure a full and final release of any and
all claims, cross-claims, counterclaims, third party claims for indemnity or
subrogation, insurance contractual extracontractual, bad faith, Consumer
Protection Act, IFCA or any other claim or cause of action, whether pleaded or
not, between the parties to this settlement will be forever released and
discharged.
4. Defendants will exercise best efforts to
this Agreement being execute'.
settlement within 30 days of