HomeMy WebLinkAbout01/10/2012 05F Settlement of Lawsuit Brought By Reynaldo Garza , r�
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No S r
For Meeting of January 10, 2012
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ITEM TITLE: Resolution authorizing the City Manager to consent to a settlement
entered into by insurance company St. Paul Fire and Marine Insurance
Company ( "Travelers ") to resolve and settle the lawsuit brought by
Reynaldo Garza.
SUBMITTED BY: City Manager's Office and Legal Department
CONTACT Michael A. Morales, Interim City Manager, 575 -6040
PERSON /TELEPHONE: 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 consent to a settlement
entered into by insurance company St. Paul Fire and Marine Insurance Company ( "Travelers ") to resolve and
settle the lawsuit filed by Reynaldo Garza in Yakima County Superior Court Cause No 09 -2- 02947 -3, entitled
Reynaldo 0 Garza v City of Yakima, and all claims by the plaintiff. The case was settled through a mediation
with mediator James M. Danielson of Jeffers, Danielson, Sonn & Aylward, P S. of Wenatchee.
The damage claim filed by Reynaldo Garza on July 24, 2008, alleged $3.5 million in damages. Plaintiffs lawsuit
was filed in 2009
The claim against the City of Yakima was settled by St. Paul Fire and Marine Insurance Company ( "Travelers ")
through mediation, subject to the presentation of the settlement before the Yakima City Council. The amount of
the settlement is $350,000, which entire amount is to be paid by the City's insurance carrier St. Paul Fire and
Marine Insurance Company ( "Travelers "). The City of Yakima is paying no money toward settlement of the case
Resolution X Ordinance Other (specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No -
Funding St. Paul Fire and Marine Insurance Company
Source: ( "Travelers ") Phone:
APPROVED FOR
SUBMITTAL: City Manager .„4 /1/2
•
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ A Resolution authorizing the City Manager of the City of Yakima to consent to a settlement entered into by insurance
company St. Paul Fire and Marine Insurance Company ( "Travelers ") to resolve and settle the lawsuit brought by
Reynaldo Garza. ,
❑ Settlement Agreement re Reynaldo Garza
RESOLUTION NO. R -2012-
A RESOLUTION authorizing the City Manager of the City of Yakima to consent to a
settlement entered into by insurance company St. Paul Fire and Marine
Insurance Company ( "Travelers ") to resolve and settle the lawsuit
brought by Reynaldo Garza.
WHEREAS, on August 11, 2009, a lawsuit was filed in Yakima County Superior Court
No. 09 -2- 02947 -3 entitled Reynaldo O. Garza v. City of Yakima; and
WHEREAS, through a mediation, a settlement was reached by insurance company
St. Paul Fire and Marine Insurance Company ( "Travelers ") and the plaintiff 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 entire amount of the settlement is to be paid by the City's insurance
carrier St. Paul Fire and Marine Insurance Company ( "Travelers "), and the City of Yakima is
paying no money toward settlement of the case; 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 insurance
company St. Paul Fire and Marine Insurance Company ( "Travelers ") and Reynaldo Garza 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 insurance company St. Paul Fire and Marine Insurance Company
( "Travelers ") to resolve and settle the lawsuit brought by Reynaldo Garza.
ADOPTED BY THE CITY COUNCIL this day of January, 2012.
, Mayor
ATTEST:
City Clerk
SETTLEMENT AGREEMENT
1. Mediation
On September 29, 2011, the parties in the matter of Reynaldo O. Garza v. City of Yakima,
Yakima County Superior Court Cause No. 09 -2- 02947 -3, engaged in a mediation with
James M. Danielson acting as mediator.
2. Release
For the consideration recited below, Reynaldo O. Garza and Ashley Garza, and their
representatives, beneficiaries, heirs, children, grandchildren, successors and assigns
(hereinafter "Releaser Parties "), forever release the City of Yakima, the City of Yakima
Police Department, Cities Insurance Association of Washington ( "CIAW "), Canfield,
St. Paul Fire and Marine Insurance Company, Travelers Insurance Company, and their
respective past, present, , and future agents employees, officers, directors, elected and
appointed officials, assigns, successors, attorneys and related entities (hereinafter "Entities
Released ") from all claims and causes of action, which may ever be asserted by the Releaser
Parties, their beneficiaries, spouse(s), executors, administrators, successors, assigns, or
others, whether presently known or unknown, presently asserted or unasserted, which in any
way arise out of or are related to any incidents, acts or omissions between the Releaser
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 Reynaldo O. Garza's employment with the City of Yakima; (2) all those matters
arising from or related to Public Records Act requests; (3) all those matters which are or
could have been a claim by Ashley Garza; (4) all those matters which are or could have been
the subject of the Claim for Damages filed by Reynaldo O. Garza on July 24, 2008; (5) all
matters which are or could have been the subject of Equal Employment Opportunity
Commission Charge Number 551- 2007 - 00517; (6) all those matters which are or could have
been the subject of United States District Court for the Eastern District Of Washington Cause
No. CV -09- 3005 -LRS; (7) all those matters which are or could have been the subject of
Yakima County Superior Court Cause No. 08 -2- 04729 -5; (8) all those matters which are or
could have been the subject of Yakima County Superior Court Cause No. 09- 2- 02947 -3; and
(9) any other incidents, acts or omissions involving the released parties and the entities
released occurring to the date this Settlement Agreement is signed.
This release covers any and all past, present and future injuries, damages or losses known or
not known to the Releaser Parties, but which may later develop or be discovered in
connection with the above referenced matters, including, but not limited to, all claims of 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.
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Settlement Agreement - 1 of 3
3. Consideration
The consideration for the aforementioned settlement and the release contained in paragraph
2 above includes the following:
1) Payment by St. Paul Fire and Marine Insurance Company ( "Travelers ")
to the trust account of the Law Office of Helsell Fetterman, LLP, the
sum of $350,000 payable for the benefit of Reynaldo O. Garza and
Ashley Garza.
2) Dismissal with prejudice and without costs or fees of Yakima County
Superior Court Cause No. 09 -2- 02947 -3.
3) Tax liability, if any, on the proceeds of the settlement sum shall be paid
by the Releaser Parties and /or the Releaser Parties' law firms, and the
Releaser Parties agree to hold the City of Yakima, St. Paul Fire and
Marine Insurance Company, and Travelers Insurance Company
harmless and to indemnify them from any tax consequences of this
settlement, if any. The duty to indemnify and hold harmless the City of
Yakima includes, but is not limited to, any required employer contribu-
tion or payment if any of the settlement proceeds are determined to be
taxable income as to the Releaser Parties or their law fines.
4. Indemnification for Subrogation and Lien Claims, and Hold Harmless
The Releaser 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 Releaser Parties agree to defend, indemnify and hold harmless the Entities Released
from and against all lien and subrogation claims, if any, including all costs and attorney's
fees incurred in the defense of such claims.
5. Warranty of Capacity to Execute Agreement
The undersigned warrant that they have the authority to execute this Settlement Agreement.
The Releaser Parties further warrant that no other person or entity has or has had any interest
in the claims or causes of action referred to in this Settlement Agreement and that they have
the sole right and exclusive authority to execute this Settlement Agreement and to receive
the settlement proceeds.
6. 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.
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Settlement Agreement - 2 of 3
7. 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 as is any fault relating to the
matters described. It is agreed and understood that this settlement is a compromise of
disputed claims. Regardless of the adequacy of the above consideration, acceptance of this
release shall not operate as an admission of liability on the part of the Entities Released.
8. Consultation With Counsel
The Releaser Parties expressly waive any claim that this release is not fairly and knowingly
made. They further represent that they have entered this settlement agreement only after
consultation with their attorneys.
Dated: January , 2012.
Reynaldo O. Garza, Releaser
Dated: January , 2012.
Ashley Garza, Releaser
STATE OF WASHINGTON )
) ss:
County of )
On this day personally appeared before me REYNALDO O. GARZA and
ASHLEY GARZA, to me known to be the individuals described in and who executed the
within and foregoing Settlement Agreement, and acknowledged that they signed the same
as their free and voluntary act and deed, for the uses and purposes therein mentioned.
GIVEN under my hand and official seal this day of January, 2012.
NOTARY PUBLIC
Print Name:
Residing at:
My Commission Expires:
Settlement Agreement - 3 of 3