HomeMy WebLinkAboutR-2018-057 Settlement of Lawsuit Brought by Ali Akbar Rezaie-Tirabadi and Juana Rezaie-Tirabadi RESOLUTION NO. R-2018-057
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
Reza ie-Ti ra bad i
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
ADOPTED BY THE CITY COUNCIL this 19th day of June, 2017
ATTEST K y C ffey,
0
Sonya CI'aar Tee, City Cle
sat
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 6.1.
For Meeting of: June 19, 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 Ali Akbar
Rezaie-Tirabadi and Juana Rezaie-Tirabadi
SUBMITTED BY: Jeff Cutter, City Attorney
Helen A. Harvey, SeniorAssistant 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. I n 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: Yes
STRATEGIC PRIORITY: NA
0
APPROVED FOR
SUBMITTAL: �City Manager
Ct*
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description
D Resdution
D Settlement Agreement
Upload Date
6115/2018
6/1512018
Type
Resolution
Vida Home Gallery 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,,
pocal subdivision of the State of Washington. I
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 nd thi settlement within 30 days of
this Agreement being execut9d,
0
SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF ALL CLAIMS
THIS AGREEMENT is made between Akbar Rezaie, aka Ali Akbar,and Juana M.Rezaie-
Tirabadi,individually and on behalf of Vida Home Gallery(collectively"Vida Home Gallery")and
Liberty Mutual Insurance Company and Ohio Security Insurance Company(collectively"Liberty")
and the City of Yakima,pursuant to the CR2A Settlement Agreement entered into on June 14,2018,
which is attached and incorporated herein by reference.
WHEREAS Liberty issued Policy No. BZS 55022847 to Vida Home Gallery
WHEREAS Vida Home Gallery brought claims against Liberty in a Yakima County
lawsuit, Vida Home Gallery a Ohio Security Insurance Company, and Liberty Mutual Insurance,
Cause No. 16-2-03038-39,which was removed to federal court, Cause No. 1:17-cv-03019-SAB,
and Ali Akbar and Juana M. Rezaie-Tirabadi d/b/a Vida Home Gallery, brought claims against
the City of Yakima in a Yakima County lawsuit,Ali Akbar and Juana M. Rezaie-Tirabadi d/b/a
Vida Home Gallery, Cause No. 17-2-03831-39 (collectively"the underlying litigation").
NOW, THEREFORE, in consideration of the agreements contained herein, and for other
valuable consideration, the receipt of which is hereby acknowledged, the parties agree to a global
settlement of all claims or potential claims between them related to or arising out of the underlying
litigation, as follows:
1. Liberty agrees to pay$36,000.00 to Vida Home Gallery.
2. The City of Yakima agrees to pay$214,000.00 to Vida Home Gallery.
3. Liberty hereby releases and forever discharges Vida Home Gallery from any and all
claims under the Ohio Security Insurance Company insurance policy for indemnification
contribution, subrogation, or payment made to Vida Home Gallery for claims that were or which
could have been asserted in the underlying litigation.
4. Liberty and City of Yakima agree to fully and finally release any and all claims
whether known or unknown,past,present or future,against each other,and further release any rights
to reimbursement of any monies paid by them pursuant to this Settlement Agreement and/or
reimbursement for their prior payment of attorney fees, costs and/or expenses to the Vida Home
Gallery,whether arising from indemnification,contribution,subrogation,or any other claim or basis.
5. Vida Home Gallery hereby releases and forever discharges Liberty and the City of
Yakima, and their respective principals, officers, directors, elected and appointed officials,
shareholders, agents, servants, employees, attorneys, reinsurers, representatives, predecessors,
successors, assignees, parent and subsidiary corporations, affiliates, divisions, subdivisions,
administrators,predecessors in interest,successors in interest and transferees from any and all causes
of action,claims,demands,liabilities,attorneys fees and obligations of any kind,whether known or
unknown, arising out of or relating to the accident that occurred on or around October 25,2014,and
including any claim that was or could have been at issue in the underlying litigation, including any
claims for insurance benefits and any claims or damages arising out of the handling of any insurance
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claim arising out of or related to any such loss or losses,regardless of whether or not any such claims
were ever alleged.
This Release specifically includes, but is not limited to a release of any and all claims for
contribution toward the legal expenses of Vida IIome Gallery and/or any and all claims of alleged
bad faith, violation of the Consumer Protection Act, Insurance Fair Conduct Act and/or any other
insurance statute,regulation or principle of common law,regardless of whether or not Vida Home
Gallery alleged such a claim.
Vida Home Gallery specifically releases Liberty and the City of Yakima from liability for any injuries
or claims that are not known or contemplated by them and that may develop in the future arising
from any loss or losses known by Vida Home Gallery,including any injury or claim arising out of or
relating to the loss that occurred on or around October 25,2014,the handling of the claims that arose
out of that accident,and any claim or damages at issue in the subject litigation. Vida Home Gallery
agrees,represents, and warrants that Vida Home Gallery realizes and acknowledges,and agrees to
assume the risk,that actual matters now unknown,unanticipated or misunderstood by Vida Home
Gallery in connection with the damages relating to the building at 113 E.Yakima Avenue,Yakima,
Washington, may have given or hereafter give rise to causes of action, claims, losses and expenses
which are presently unknown,unanticipated or unsuspected,or misunderstood, and further agrees,
represents and warrants that the releases in this Agreement have been negotiated and agreed to in
light of the realization that Vida IIome Gallery nevertheless intends to release,discharge,and acquit
Liberty and the City of Yakima from any such controversies,damages, costs,losses, and expenses.
Vida Home Gallery warrants and represents that it has no knowledge or notice of any third party
claims, liens, or subrogation interests of any kind relating to this Agreement or the consideration
hereunder to be paid by the City of Yakima and Liberty,excepting the claims released hereby related
to Liberty Mutual and the City of Yakima,and shall defend,hold harmless,and indemnify the City
and Liberty and as to each its elected and appointed officials, officers, directors,agents, attorneys,
employees,successors and assigns,from any and all liabilities,demands,taxes,claims,cross claims,
counterclaims, actions, suits, damages,penalties, costs, losses, expenses, interest, court costs, and
attorney's fees of any kind or nature whatsoever,known or unknown,arising out of,or resulting from
the damages claimed by Vida Home Gallery resulting from the City of Yakima burst water pipeto the
building at 113 E, Yakima Avenue,Yakima,Washington other than the Liberty Mutual and City of
Yakima claims being addressed herein.
6. No Admission of Liability. The City of Yakima, Liberty, and Vida IIome Gallery
acknowledge that this Agreement has been executed in connection with the compromise and
settlement of disputed claims and that the Agreement and the actions taken pursuant thereto do not
constitute an acknowledgement or admission on the part of any party.
7. No Precedential Value. This Agreement is without prejudice or value as
precedent and shall not be used in any proceeding or hearing to create, prove, or interpret the
obligations under, or terms and conditions of, any other agreement or insurance policy.
8. Successors. Subject to any express restrictions on assignment contained in this
Agreement, this Agreement shall inure to the benefit of and be binding upon the heirs, personal
representatives, successors and assigns of the parties hereto.
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9. Law and Venue.This Agreement shall be construed and interpreted under the laws of
the State of Washington. The venue for any action to enforce or interpret this Agreement shall lie in
the Superior Court of the State of Washington for Yakima County.
10, Binding Agreement. This Agreement represents and contains the entire agreement
between the parties and expressly supersedes any and all previous agreements or understandings,oral
or written, among them. Should any provision of this Agreement be determined to be illegal or
invalid, the validity of the remainder shall not be affected and the remaining provisions shall be
enforceable. The parties further agree that no term of this Agreement may be altered unless such
alteration is in writing and signed by both parties. Each person executing this Agreement on behalf
of a party warrants that he or she is fully authorized to bind such party to this Agreement without the
necessity of any :further action or confirmation. Each party acknowledges that it has had the
opportunity to conduct an investigation into the facts and evidence relating to the released claims and
that it has made an independent decision to enter this Agreement,without relying on representations
of any other party. Each party assumes the risk that the facts or evidence may turn out to be different
than it now understands them to be and agrees to be bound by this Agreement notwithstanding the
discovery of new or different facts or evidence.
11. Authorship. The City of Yakima, Liberty,and Vida Home Gallery agree that this
Agreement reflects the joint drafting efforts of the parties. In the event any dispute,disagreement or
controversy arises regarding this Agreement, the City of Yakima, Liberty and Vida Home Gallery
shall be considered joint authors and no provision shall be interpreted against any party because of
purported authorship.
12. Counterparts. This Agreement may be executed in any number of counterparts and
all counterparts shall be deemed to constitute a single agreement.The execution and delivery of any
counterpart by any person shall have the same force and effect as if that person had executed and
delivered all other counterparts.The electronic facsimile and/or emailed transmittal of a copy hereof
bearing any person's signature shall have the same force and effect as the physical delivery to the
same recipient of copy hereof bearing such person's original signature.One or more signature pages
hereof may be detached from any counterpart hereof and attached to another counterpart identical in
form and content hereto without impairing the legal effect of any signatures thereon.
13. Confidentiality. Vida Home Gallery agrees that it(and its attorneys)will take no
affirmative steps to publish or otherwise make known the amount or terms or amount of the
settlement. As a public agency governed by the Public Records Act and the Open Public Meetings
Act,the terms of this paragraph shall have no applicability to the City of Yakima.
14. Tax Liability. Tax liability, if any,on the proceeds of the settlement sum shall be paid
by Vida Home Gallery.
I HAVE READ THIS RELEASE AGREEMENT, I UNDERSTAND IT AND I ACCEPT IT
UNCONDITIONALLY.
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DATE
Ali Akbar (aka Akbar Rezaie)
DATE
Juana M. Rezaie-Tirabadi
DATE 6/ 27
Vida Home Gallery
By
Its
DATE
Liberty Mutual Insurance Company,
Ohio Security Insurance Company
By
Its
CITY OF YAKIMA
By:
Cliff Moore, City Manager
Date:
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Resolution No. R-2018- D S?
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RESOLUTION NO: 9a1 29'5 l
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