HomeMy WebLinkAbout11/06/2012 09 Lawsuit Settlement For Elaine Gonzalez r
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: November 6, 2012
i
ITEM TITLE: Resolution authorizing a settlement entered into by
insurance company St. Paul Fire and Marine Insurance
Company ( "Travelers ") to resolve and settle the lawsuit
brought by Elaine Gonzalez.
SUBMITTED BY: City Manager's Office and 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 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 Elaine Gonzalez in Yakima
County Superior Court Cause No. 09 -2- 03121 -4, entitled Elaine Gonzalez v. City of Yakima,
and to settle all claims by the plaintiff. The case was settled through a mediation with
mediator Michele Sales of Washington Arbitration and Mediation Service ( "WAMS ").
The damage claim filed by Elaine Gonzalez on October 9, 2008, and the amended damage
claim filed on April 22, 2009, alleged $4 million in damages. Plaintiffs lawsuit was filed on
August 20, 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 $180,000, 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 Phone:
• Source: Company ("Travelers")
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ 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 Elaine Gonzalez
❑ Settlement Agreement re Elaine Gonzalez
•
•
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 Elaine Gonzalez.
WHEREAS, on August 20, 2009, a lawsuit was filed in Yakima County Superior Court
No. 09 -2- 03121 -4 entitled Elaine Gonzalez 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 Elaine Gonzalez 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 Elaine Gonzalez, which settlement
will be paid by St. Paul and Marine Insurance Company ( "Travelers ").
ADOPTED BY THE CITY COUNCIL this day of November, 2012.
Micah Cawley, Mayor
ATTEST
City Clerk
•
SETTLEMENT AGREEMENT
1. Mediation
On October 29, 2012. the parties in the matter of Elaine Gonzalez v. City of Yakima.
Yakima County Superior Court Cause No. 09- 2- 03121 -4, engaged in a mediation with
Michele Sales acting as mediator.
2. Release
For the consideration recited below,, Elaine Gonzalez, and her representatives, benefi-
ciaries, heirs, children grandchildren, successors and assigns (hereinafter "Releaser
Party "), 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 Party, her 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 Party 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 Elaine
Gonzalez's employment with the City of Yakima occurring prior to October 29, 2012; (2)
all those matters arising from or related to Public Records Act requests, if any, made
prior to October 29, 2012; (3) all those matters which are or could have been the subject
of the Claim for Damages filed by Elaine Gonzalez on 10/9/08; (4) all those matters
which are or could have been the subject of Yakima County Superior Court Cause No.
09- 2- 0312I -4; and (5) any other incidents, acts or omissions involving the released
parties and the entities released occurring prior to the date of this Settlement Agreement
is signed.
•
Settlement - ent Agreement 1 of 3
3. Consideration
The consideration for the aforementioned settlement and the release contained in
paragraph 2 abo\ e includes the following.
1) Payment by St. Paul Fire and Marine Insurance Company ("Travel-
ers") to the trust account of the La\\ Office of Helsell Fetterman.
the sum of S180,000.00 payable for the benefit of Elaine Gon-
zales (after approval by the Yakima City Council).
2) Dismissal with prejudice and w ithout costs or fees of Yakima Coun-
ty Superior Court Cause No. 09- 2- 03121 -4.
3) Tax liability, if any, on the proceeds of the settlement sum shall be
paid by the Releaser Party and /or the Releaser Party's law firms, and
the Releaser Party agrees 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
contribution or payment if any of the settlement proceeds are deter-
mined to be taxable income as to the Releaser Party or her law firms.
4. Indemnification for Subrogation and Lien Claims, and Hold Harmless
The Releaser Party represents 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 Party agrees 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 warrants that she has the authority to execute this Settlement Agree-
ment. The Releaser Party further warrants 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 she has the sole right and exclusive authority to execute this Settlement Agreement
and to receive the settlement proceeds.
•
Settlement Agreement - 2 of 3
11 1 1 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.
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.
S. Consultation With Counsel
The Releaser Party expressly waives any claim that this release is not fairly and knowing-
ly made. She further represents that she has entered this Settlement Agreement only after
consultation with her attorneys.
Dated: October 29, 2012.
Elaine Gonz. I' -Was - Party
STATE OF WASHINGTON )
) ss:
County of X/ Ad b )
On this day personally appeared before me ELAINE GONZALEZ, to me known
to be the individual described in and who executed the within and foregoing Settlement
Agreement, and acknowledged that she signed the same as her free and voluntary act and
deed, for the uses and purposes therein mentioned.
GIVEN under my hand and official seal this
y c7, day of October, 2012.
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Settlement Agreement - 3 of 3