02/07/2012 04Q Settlement of Lawsuit Brought by Juan Antonio Hernandez Ortega ' ; "' 4 t " ,ms ' s
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of February 7, 2012
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ITEM TITLE: , Resolution authorizing the City Attorney 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 Juan Antonio Hernandez Ortega.
SUBMITTED BY: Legal Department
CONTACT Helen A. Harvey, Senior Assistant City Attorney, 575 -6030
PERSON /TELEPHONE:
SUMMARY EXPLANATION:
This matter is on for consideration of a Resolution authorizing the City Attorney 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 Juan Antonio Hernandez Ortega in Yakima County Superior Court Cause No. 09 -2-
03457-4, entitled Juan Antonio Hernandez Ortega v. Blake Young, City of Yakima and Yakima Police
Department, and all claims by the plaintiff. The case was settled through a mediation with mediator David
Thorner of Thorner Kennedy & Gano of Yakima.
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 $175,000, 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.
The City previously had met its $100,000 deductible through defense expenses for defense of the three lawsuits
arising out of the pursuit of Blake Young. The State of Washington Department of Corrections is also paying the
same amount of $175,000 to settle a separate lawsuit brought by plaintiff against it. The settlement will be a
structured settlement.
Attached is a copy of the "Mediated Settlement Agreement" dated January 18, 2012. The final Settlement
Agreement and Release will be approved by an attorney in the City Legal Department.
The background of the lawsuit is as follows: The damage claim filed by Juan Hemandez Ortega on May 18,
2009, alleged $4.5 million in damages on behalf of both Juan Hernandez Ortega and the Estate of Guillermo
Rafael Aguilar,.who was the deceased passenger of the vehicle Mr. Ortega was also a passenger in. The
plaintiffs lawsuit was filed on September 18, 2009 The claim of Juan Hernandez Ortega was not part of an
October 28, 2010 mediation, where the claims on behalf of the Estates of Guillermo Rafael "Bobby" Aguilar and
Edgar Trevino - Mendoza were settled. Those two settlements were approved by the City Council on November
16, 2010
The claims arose from a police pursuit of Blake Young on October 22, 2006, in which a vehicle driven by Blake
Young collided with a vehicle driven by Edgar Trevino - Mendoza in the intersection of Nob Hill Boulevard and
48th Avenue in Yakima. Edgar Trevino - Mendoza, the driver, Guillermo Aguilar, who was seated in the front right
passenger seat, and Juan Hernandez Ortega, who was seated in the back seat, were 19 years old at the time of
the colli Edgar Trevino - Mendoza and Guillermo Aguilar died as a result of the collision involving the vehicle
driven by Blake Young.
Blake Young, the driver of the stolen vehicle, was convicted by a jury on February 2, 2009, of two counts of
second degree murder, one count of vehicular assault, and one count of second degree theft in Yakima County
Superior Court. He was sentenced by Judge Lust on March 6, 2009 to approximately 440 months in prison (36
years). After he appealed, Blake Young's conviction was affirmed by the Court of Appeals in State v. Blake
Edward Young, 158 Wn. App. 707 (2010), review denied, 171 Wn. 2d 1013 (2011).
Resolution X Ordinance Other (specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding
Source: Phone:
APPROVED FOR
SUBMITTAL:
City Manager
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ Resolution authorizing the City Attorney 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 Juan
Antonio Hernandez Ortega
❑ Mediated Settlement Agreement dated 1 -18 -2012 re Hernandez Ortega
RESOLUTION NO. R -2012-
A RESOLUTION authorizing the City Attorney 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 Juan Antonio Hernandez Ortega.
WHEREAS, on September 18, 2009, a lawsuit was filed in Yakima County Superior
Court No. 09 -2- 03457 -4 entitled Juan Antonio Hernandez Ortega v. Blake Edward Young,
individually, and City of Yakima, a municipal corporation, Yakima Police Department, a
municipal department; and
WHEREAS, through a mediation, a settlement, which will be a structured 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 best interest of
the City to authorize the City Attorney to consent to a settlement entered into by insurance
company St. Paul Fire and Marine Insurance Company ( "Travelers ") and Juan Antonio
Hernandez Ortega to resolve and conclude the lawsuit; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Attorney 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 Juan Antonio Hernandez Ortega.
ADOPTED BY THE CITY COUNCIL this day of February, 2012.
Micah Cawley, Mayor
ATTEST:
City Clerk
MEDIATED SETTLEMENT AGREEMENT
Date: January 18, 2012
We, the undersigned parties, hereby enter into this binding agreement to settle any and all
claims of Juan Antonio Hemandez- Ortega, a single man, against the City of Yakima and the State of
Washington, their agents and employees and The Travelers Insurance Company and CIAW for injuries
and /or all damages arising out of an incident occurring in the City of Yakima, Yakima County,
Washington on October 22, 2006, for the total sum of $350,000.00. Payment of $175,000.00 by •
Travelers Insurance Company on behalf of the City shall be made to the Smart, Connell, Childers and
Verhulp, P.S. Trust Account not later than thirty (30) days after Yakima City Council's approval of this
settlement, which is a condition thereof, and upon receipt of the closing documents, including any
documents relating to the structured portion of the settlement. The proposed settlement will be presented
to the Yakima City Council on February 7, 2012 with a recommendation from the City's defense counsel
herein that the settlement be approved. Payment of $175,000.00 by the State of Washington shall be
pursuant to a Stipulated Judgment against the State in favor of Mr. Hernandez - Ortega, and said amount
shall be paid into the Yakima County Superior Court Registry to be disbursed pursuant to an Agreed
Court Order to the SCCV Trust Account within thirty (30) days of entry of the said Judgment. Claimant
reserves the right to structure a portion of this settlement through Ringler Associates at no additional cost
to the Defendants and their insurers.
Claimant and attorney agree to be responsible to satisfy all liens and any outstanding subrogation
claims, to execute appropriate full and final releases and confirming documents, and to enter an Order of
Dismissal of All Claims With Prejudice and Without Cost in Yakima County Superior Court Nos. 09 -2-
04759-5 and 09- 2- 03457 -4. Mr. Christie and Ms. Fetterly shall prepare the final documents to be
approved by Mr. Childers. Any disputes as to or arising from this Agreement or the above - referenced
final documents shall be resolved by David A. Thorner, as the final binding arbitrator.
i 1
• tonio He • • dez- Orteg. • o • - Christie, Attorney for City
a il • 46 J See attached email
istopher L. ders, Attorne Patricia Fetterly, Assistant Attorney
for Mr. Hernandez - Ortega General for Washington State
Claimant Attorney Tax ID Number: 91- 1911515