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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 1 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 2 Type Resolution Backup Material 3 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. 4 ADOPTED BY THE CITY COUNCIL this 19th day of June, 2017. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk 5 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