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05/18/2021 04L Resolution authorizing a settlement agreement by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the claims brought by Daniel and Lynette Haller, Kimberly Johnson, and Jack GabbardBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 41. For Meeting of: May 18, 2021 ITEM TITLE: Resolution authorizing a settlement agreement by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the claims brought by Daniel and Lynnette Haller, Kimberly Johnson, and Jack Gabbard as personal representative of the estate of Alene Gabbard SUBMITTED BY: Ryan Bleek, Assistant City Attorney SUMMARY EXPLANATION: This matter is on for consideration of a Resolution consenting to a settlement entered into by CIAW and Munich Reinsurance to resolve and settle the claims brought by Daniel and Lynnette Haller, Kimberly Johnson, and Jack Gabbard as personal representative of the estate of Alene Gabbard. These individuals were among several plaintiffs named in a lawsuit filed on May 30, 2019 in Yakima County Superior Court Case No. 19-2-01934-39, entitled Haywire Ouft, Inc., et al. v. City of Yakima, et al. The claims of the above -named plaintiffs against the City of Yakima were settled by CIAW and Munich Reinsurance through a mediation held on April 19, 2021, subject to the approval of the contingent settlement agreement before the Yakima City Council at a City Council business meeting. A copy of the agreement is included. The aggregate amount to be paid on behalf of the City of Yakima towards settlement of plaintiffs' claims is $110,500, all of which shall be paid by the City's insurance through CIAW and Munich Reinsurance. The City of Yakima has already paid its deductible for this claim and is paying no money toward settlement of plaintiffs' claims. Additionally, as is outlined in the contingent settlement agreement, defendant City of Union Gap will be contributing to the total settlement amount for the above claims. Because the mediation did not result in settlement with all plaintiffs party to the lawsuit, the suit will not be dismissed in its entirety at this time. VIIA IT, D STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt resolution ATTACHMENTS: Description Upload Date Type D Resolution - Plaintiffs Group 1 Settlement 5/5/2021 Resolution D Contingent Settlement Agreement 5/6/2021 Contract RESOLUTION NO. R-2021- A RESOLUTION approving the conditional settlement agreement entered into by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the claims brought by Daniel and Lynnette Haller, Kimberly Johnson, and Jack Gabbard as personal representative of the estate of Alene Gabbard WHEREAS, on May 30, 2019, a lawsuit was filed in Yakima County Superior Court Case No. 19-2-01934-39 entitled Haywire Outfit, Inc., et al. v. City of Yakima, et al.; and WHEREAS, through a mediation, settlement with plaintiffs Daniel and Lynnette Haller, Kimberly Johnson, and Jack Gabbard, personal representative of the estate of Alene Gabbard, was reached between CIAW and Munich Reinsurance to resolve and conclude said plaintiffs' claims in the matter; and WHEREAS, in the CR 2A Memorandum of Settlement Agreement, plaintiffs agreed to execute a Release and Hold Harmless agreement 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 plaintiffs' claims; 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 plaintiffs to resolve and conclude plaintiffs' claims, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City of Yakima approves the settlement entered into by CIAW and Munich Reinsurance to resolve and settle the claims brought by the above -named plaintiffs, which will be paid by CIAW and Munich Reinsurance. The City Manager and/or the City's legal counsel are hereby authorized to execute all documents necessary to conclude settlement as consistent with this Resolution. ADOPTED BY THE CITY COUNCIL this 18th day of May, 2021. Patricia Byers, Mayor ATTEST: Sonya Claar Tee, City Clerk Dear Counsel: Haywire Outfit, Inc., et al, Plaintiffs v. City of Yakima, City of Union Gap and PacifiCorp, Defendants Yakima County Superior Court Case No 19-2-01964-39 This will confirm that the above matter has been partially resolved on the following terms and conditions: Defendants shall pay to Plaintiff Gabbard $6500 ($5500.00 from City of Yakima and $1000.00 from City of Union Gap); $50,000.00 to Daniel and Lynette Haller ($45,000.00 from City of Yakima and $5,000.00 from City of Union Gap); and $70,000.00 to Kimberly Johnson ($60,000.00 from City of Yakima and $10,000.00 from City of Union Gap); said settlement is subject to approval by the City of Yakima City Council -which shall be set on the May 18,2021 agenda; 2. Plaintiffs Gabbard, Johnson and Haller shall execute a release of all claims, Plaintiff's counsel shall provide its W-9; 3. The parties will cooperate in formalizing this settlement with appropriate documentation; 4. The pending claims by these three plaintiffs will be dismissed with prejudice and without costs or attorneys fees; however, the parties acknowledge that Plaintiffs Haywire, Mayo, Murray Family LLC and Leon Savaria have not settled their claims; 5. Once the terms of this settlement have been confirmed by all parties, then these emails, taken together, will constitute a binding settlement agreement and copies of the same may be introduced into evidence in any proceeding to enforce this settlement. CR2A. If the foregoing meets with your approval, please so indicate by "reply to all" and stating your concurrence. If clarification or additional terms are needed, please so advise in the same fashion.