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04/06/2021 04K Settlement Agreement for Lawsuit Brought by Tamara and Thomas Fischer to\'4\lyy tbxk ik 1 + PPP d g. P A P p PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.K. For Meeting of:April 6, 2021 ITEM TITLE: Resolution authorizing a settlement agreement by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the lawsuit brought by Tamara Fischer and Thomas Fischer SUBMITTED BY: Ryan Bleek,Assistant 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 Munich Reinsurance to resolve and settle the lawsuit filed by Tamara Fischer and Thomas Fischer on August 28, 2018 in Yakima County Superior Court Case No. 18-2-02424-39 entitled Tamara L. Fischer and Thomas Fischer v. Michael Harness and Jane Doe Harness;and City of Yakima, and to settle all claims by the plaintiffs. The claim against the City of Yakima was settled by CIAW and Munich Reinsurance through mediation with mediator Teresa Wakeen of Wakeen &Associates, subject to the approval of the settlement before the Yakima City Council at a City Council business meeting. A copy of the Memorandum of Settlement Agreement is attached. The amount of the settlement is $1,750,000, which entire amount is to be paid by CIAW and Munich Reinsurance. The City of Yakima has already paid its deductible for this claim and is paying no money toward settlement of the case. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt resolution. ATTACHMENTS: Description Upload Date Type L resolution MO/2021 r Memo D ettlement Agr meat 3/24/2021 ackup Material 2 Contrnmcd CR 2A Settlement Agranmeik Fischer- 3242021 Backup lnlaterial Yakima 3 RESOLUTION NO. R-2021- A RESOLUTION authorizing a conditional settlement agreement entered into by Cities Insurance Association of Washington ("CIAW') and Munich Reinsurance to resolve and settle the lawsuit brought by Tamara Fischer and Thomas Fischer. WHEREAS, on August 28, 2018, a lawsuit was filed in Yakima County Superior Court Case No. 18-2-02424-39 entitled Tamara L. Fischer and Thomas Fischer("Plaintiffs') v. Michael Harness and City of Yakima; and WHEREAS, through a mediation, a settlement was reached between CIAW and Munich Reinsurance and the plaintiffs to resolve and conclude all claims in the matter; and WHEREAS, in the CR 2A Memorandum of Settlement Agreement, Plaintiffs agreed to execute a Settlement and Full Release of all claims upon approval of the proposed settlement by the Yakima City Council; and WHEREAS, the entire amount of the settlement is to be paid by CIAW and Munich Reinsurance, 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 CIAW and the plaintiff to resolve and conclude the lawsuit, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City of Yakima consents to the settlement entered into by CIAW and Munich Reinsurance to resolve and settle the lawsuit brought by Tamara L. Fischer and Thomas Fishcer, which settlement will be paid by CIAW and Munich Reinsurance. The City Manager is hereby authorized to execute all documents necessary to conclude settlement as consistent with this Resolution. ADOPTED BY THE CITY COUNCIL this 6'h day of April, 2021. Patricia Byers, Mayor ATTEST: Sonya Clear Tee, City Clerk 4 Subject to the Confidentiality and Representation provisions of the Agreement to Mediate,the following constitutes a SETTLEMENT AGREEMENT Case:Tamara Fischer and Thomas Fischer v. Michael A. Harness and Jane Doe Harness The parties to the above-entitled matter have agreed to settle the case as follows: 1. Defendants agree to pay Plaintiffs and their attorney the total sum of$25,000.00; 2. Plaintiff will execute Release of All Claims against Defendants and will indemnify and hold harmless Defendants from all medical and wage liens and/or subrogation claims, and will dismiss with prejudice and without costs the case now pending in Yakima County Superior Court; 3.The parties agree to consummate the settlement with appropriate documentation; 4. This Agreement shall be construed as a stipulated settlement in any court of law pursuant to CR 2(a) and RCW 2.44.010. Signed: March 23, 2021 Jan/ai Plaintiff Tamara L. Fischer Plaintiffs' Counsel Scott Brumback 7272,-("14/e Plaintiff Thomas Fischer Defendant Harness' Counsel Tony Maack 5 CR 2A Memorandum of Settlement Agreement On March 23, 2021,the parties engaged in mediation of the matter Tamara and Thomas Fischer v. City of Yakima and Michael Harness, Yakima County Superior Court Cause No. 18-2- 02424-39,via Zoom with mediator Teresa Wakeen. Pursuant to the agreement reached at that mediation,the parties hereby reached the following global settlement agreement: 1. On behalf of the City of Yakima, its insurer Clear Risk Solutions agrees to pay plaintiffs Tamara Fischer and Thomas Fischer one million seven hundred and fifty thousand dollars ($1,750,000.00) in exchange for plaintiffs' complete release of all claims against the City of Yakima; 2. This settlement is subject to approval by the Yakima City Council, which is expected to convene on this matter in early-to mid-April of 2021; 3. If the Yakima City Council approves this settlement, the plaintiffs agree to execute a Settlement and Full Release of all of the claims plaintiff has asserted or could assert in the matter Tamara and Thomas Fischer v.City of Yakima and Michael Harness,Yakima County Superior Court Cause No. 18-2-02424-39 against the City of Yakima; 4. The Settlement and Full Release will include an indemnification and hold harmless agreement releasing the City of Yakima and all its employees and agents from any and all liens that may be asserted as a result of the matter Tamara and Thomas Fischer v. City of Yakima and Michael Harness, Yakima County Superior Court Cause No. 18-2-02424-39, Including any and all liens of any insurer, any and all medical provider of any kind, Medicare/Medicaid, and attorneys; 5. Clear Risk Solutions will utilize best efforts to expedite the delivery of the settlement check, although it is not in a position to guarantee the date of delivery; 6. Plaintiffs further agrees to enter a stipulated order dismissing all claims against the City of Yakima with prejudice in the matter Tamara and Thomas Fischer v. City of Yakima and Michael Harness, Yakima County Superior Court Cause No. 18-2-02424-39, with each party bearing their own costs; and 7. Plaintiffs have entered into a separate agreement with defendant Michael Harness that is part of this global agreement, but which be addressed by a separate CR 2A agreement between those parties. 8. Any dispute regarding the terms to be contained in the Settlement and Full Release will be mediated by Teresa Wakeen. Signed this 23rd day of March,2021. Tamara Fischer Thomas Fischer Plaintiff Plaintiff • Scott Brumback Ann Trivett Attorney for Plaintiffs Attorney for Defendant City of Yakima