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Home My WebLink About08/20/2013 05N Tracy Garcia Lawsuit SettlementBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6W For Meeting of: 8/20/2013 ITEM TITLE: Resolution authorizing consent to a settlement entered into by Cities Insurance Association of Washington ( "CIAW') and Munich Reinsurance to resolve and settle the lawsuit brought by Tracy Garcia. SUBMITTED BY: Helen A. Harvey, Senior 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 reinsurer Munich Reinsurance to resolve and settle the lawsuit filed by Tracy Garcia on April 10, 2012 in U.S. District Court for the Eastern District of Washington Case No. CV -12- 198 -EFS entitled Tracy Garcia v. City of Yakima, and the City of Yakima Municipal Court, and to settle all claims by the plaintiff. Ms. Garcia was employed as one of the municipal court clerks in Yakima Municipal Court from September 2006 to June 2011. The claim against the City of Yakima was settled by CIAW and Munich Reinsurance through mediation with mediator John C. Riseborough of Paine Hamblen in Spokane, subject to the presentation of the settlement before the Yakima City Council. A copy of the Release of All Claims is attached. The amount of the settlement is $300,000, which entire amount is to be paid by CIAW and the City's insurance carrier Munich Reinsurance. The City of Yakima is paying no money toward settlement of the case. Resolution: X Other (Specify): Contract: Start Date: Item Budgeted: NA Funding Source /Fiscal Impact: Strategic Priority: Insurance Required? No Ordinance: Contract Term: End Date: Amount: Public Trust and Accountability Mail to: Phone: RESOLUTION NO. R -2013- A RESOLUTION authorizing the City Manager of the City of Yakima to consent to a settlement entered into by Cities Insurance Association of Washington ( "CIAW ") and Munich Reinsurance to resolve and settle the lawsuit brought by Tracy Garcia. WHEREAS, on April 10,2012, a lawsuit was filed in U.S. District Court for the Eastern District of Washington No. CV -12- 198 -EFS entitled Tracy Garcia v. City of Yakima, and the City of Yakima Municipal Court; and WHEREAS, through a mediation, a settlement was reached by CIAW and Munich Reinsurance 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 CIAW and reinsurer 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 Munich Reinsurance 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 Manager of the City of Yakima is authorized to consent to the settlement entered into by CIAW and Munich Reinsurance to resolve and settle the lawsuit brought by Tracy Garcia, which settlement will be paid by CIAW and Munich Reinsurance. ADOPTED BY THE CITY COUNCIL this day of August, 2013. Micah Cawley, Mayor ATTEST: City Clerk SETTLEMENT AGREEMENT THIS SETTLEMENT AGREEMENT is executed this day of August 2013, as between Tracy Garcia and the City of Yakima and the City of Yakima Municipal Court. RECITALS WHEREAS, A. Plaintiff Tracy Garcia seeks relief by way of a lawsuit in the United States District Court for the Eastern District of Washington, Case No. CV- 12- 0198 -EFS (hereafter "lawsuit ") from Defendants City of Yakima and City of Yakima Municipal Court for damages allegedly inflicted upon her by employees and former employees of Defendants. B. Defendants City of Yakima and City of Yakima Municipal Court deny any responsibility or liability for the damages allegedly inflicted upon Plaintiff Tracy Garcia by their employees and former employees. C. Plaintiff Tracy Garcia and Defendants City of Yakima and City of Yakima Municipal Court agree to resolve and dispose of the lawsuit and the claims and allegations therein in accordance with the terms set forth in this Settlement Agreement. NOW, THEREFORE, Tracy Garcia and City of Yakima and City of Yakima Municipal Court hereby agree as follows: AGREEMENT 1. City of Yakima and City of Yakima Municipal Court, by and through their insurance carriers Cities Insurance Association of Washington (hereafter "CIAW ") and Munich Reinsurance, agree to pay to Tracy Garcia the total sum of Three Hundred Thousand dollars and zero cents ($300,000.00) in two distributions; the first distribution in the amount of One Hundred Forty Five Thousand dollars and zero cents ($145,000) payable to the "Trust Account of Olive Bearb PLLC" with the firm's tax identification number � annotated as "attorneys' fees /costs," and the second distribution in the amount of One Hundred Fifty Five Thousand dollars and zero cents ($155,000) payable to the "Trust Account of Olive Bearb PLLC" with the firm's tax identification number annotated as "Tracy Garcia." 2. Upon the complete endorsement of this Agreement by all parties, Tracy Garcia automatically releases and forever waives any and all claims whether known or unknown, asserted or unasserted, against Defendants City of Yakima, City of Yakima Municipal Court, CIAW, and Munich Reinsurance relating to or arising from recitals A and B, and any investigation thereon or allegations made as a result thereof. This release SETTLEMENT AGREEMENT Page 1 and waiver is universal in scope and specifically includes but is not limited to all agents, employees, former employees, directors, officers, affiliated companies, attorneys, insurers, predecessors, successors, assigns of the parties specifically enumerated in this paragraph. 3. Upon the complete endorsement of this Agreement by all parties, Tracy Garcia, City of Yakima, and City of Yakima Municipal Court agree that the lawsuit referred to in recital A shall be dismissed with prejudice and without costs or fees to any party. 4. Tax liability, if any, on the proceeds of the settlement sum shall be paid by Tracy Garcia and /or Olive Bearb PLLC, and Tracy Garcia agrees to hold the City of Yakima, City of Yakima Municipal Court, CIAW, and Munich Reinsurance harmless and to indemnify them from any tax consequences of this settlement. The agreement to hold harmless and indemnify the City of Yakima, City of Yakima Municipal Court, CIAW, and Munich Reinsurance includes but is not limited to any required employer contribution or payment in the event that any of the settlement proceeds are determined to be taxable income of Tracy Garcia and /or Olive Bearb PLLC. 5. Upon the endorsement of this Agreement, Tracy Garcia represents that any lienable expenses, any subrogation claims, and any claims of any other persons or entities legally entitled to share in the proceeds of this settlement have been paid or will be paid from the proceeds of this settlement, or have been or will be otherwise resolved. Tracy Garcia agrees to hold the City of Yakima, City of Yakima Municipal Court, CIAW, and Munich Reinsurance harmless and to indemnify them from all liens and all subrogation claims, if any, including all costs and attorneys' fees incurred in the defense of such claims. 6. The parties to this Agreement agree to divide equally the costs associated with the August 5, 2013 mediation of the lawsuit. 7. All signatories to this Agreement certify and warrant that they are fully authorized to enter into this Agreement and bind themselves and the parties thereto. 8. This Agreement is entered into under the laws of the State of Washington, and if it becomes necessary to interpret any of the terms herein stated, Washington law shall apply. 9. All signatories to this Agreement have read this Agreement and all documents executed in conjunction with it or in performance of its terms, and fully understand the terms. They have had an opportunity to seek SETTLEMENT AGREEMENT Page 2 independent legal counsel regarding the legal implications of this Agreement and any and all documents executed in conjunction with it or in performance of its terms. 10. This Agreement is binding upon, and shall inure to the benefit of, any heirs, legatees, representatives, successors, assigns, and statutory beneficiaries of Tracy Garcia, City of Yakima, and City of Yakima Municipal Court. DATED this day of 2013. Tracy Garcia By Tracy Garcia SETTLEMENT AGREEMENT Page 3 City of Yakima By Tony O'Rourke, City Manager ATTEST: Utz City Clerk CITY OF YAKIMA MUNICIPAL COURT Utz Kelley C. Olwell, Presiding Judge