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Home My WebLink About02/07/2012 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 S, „ ;hJp ;W ..42 ; �� .a ' 1 l i..r : ,; ,/!.?, t, ), v.l .,, <','W. 7 .t 4GS,6K";,. , k r o- , p rv.. 4, S •- ,:j' 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