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09/07/2021 06.H. Resolution authorizing a settlement agreement by Cities Insurance Association of Washington ("CIAW") and Munich Reinsurance to resolve and settle the claims brought by Murray Family LLC, Doug and Bronwyn Mayo, and Haywire Outfit, Inc. 1 14.4111\l'A 1—coi• oriV4 rr 11 i "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.H. For Meeting of: September 7, 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 Murray Family LLC, Doug and Bronwyn Mayo, and Haywire Outfit, Inc. SUBMITTED BY: Ryan Bleek, Senior 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 Murray Family LLC, Doug and Bronwyn Mayo, and Haywire Outfit, Inc. These plaintiffs 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 Ouffit, 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 August 25, 2021, subject to Yakima City Council's approval. Copies of the agreements are included. Council previously approved, on May 18, 2021, the settlement of additional plaintiffs that were parties to this lawsuit. The aggregate amount to be paid on behalf of the City of Yakima towards settlement of plaintiffs' claims is $327,500, 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 agreements, 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. One plaintiff remains. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER 2 RECOMMENDATION: Adopt resolution ATTACHMENTS: Description Upload Date Type D Resolution-Plaintiffs Group 2 Settlement 8/26/2021 Resolution ❑ Agreement-Haywire 8/26/2021 Contract ❑ Agreement-Murray 8126/2021 Contract 3 RESOLUTION NO. R-2021- A RESOLUTION approving the conditional settlement agreement entered into by Cities Insurance Association of Washington ("CIAW') and Munich Reinsurance to settle the claims brought against the City of Yakima by Murray Family LLC, Doug and Bronwyn Mayo, and Haywire Outfit, Inc. 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 at v. City of Yakima, et al.; and WHEREAS, through a mediation, settlement with plaintiffs Murray Family LLC, Doug and Bronwyn Mayo, and Haywire Outfit, Inc., was reached between CIAW and Munich Reinsurance to resolve and conclude said plaintiffs' claims in the matter; and WHEREAS, 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 City of Yakima's portion 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 7'h day of September, 2021. Patricia Byers, Mayor ATTEST: Sonya Clear Tee, City Clerk 4 Dear Counsel: Haywire Outfit, Inc., Doug Mayo, et.al. Plaintiffs v. City of Yakima, City of Union Gap and Pacific Corp, Defendants Yakima County Superior Court No. 19-2-01964-39 This will confirm that the above matter has been partially resolved on the following terms and conditions: 1 . Defendants City of Yakima and City of Union Gap shall pay to Plaintiffs Doug Mayo and Haywire Outfit, Inc. $212,500.00 (City of Yakima at $182,500.00 and City of Union Gap at $30,000.00); said checks shall be payable to Abeyta Nelson Injury Law, PS in trust for Doug Mayo and Haywire Outfit, Inc ; 2. Plaintiff shall execute a release of all claims against the City of Yakima, City of Union Gap and PacifiCorp; 3. The parties will cooperate in formalizing this settlement with appropriate documentation; 4. The pending claim by Haywire Outfit, Inc. and Doug Mayo will be dismissed with prejudice and without costs or attorneys fees; 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. 5 Dear Counsel: Haywire Outfit, Inc., Murray Family LLC, et al Plaintiffs v. City of Yakima, City of Union Gap and Pacific Corp, Defendants Yakima County Superior Court No. 19-2-01964-39 This will confirm that the above matter has been partially resolved on the following terms and conditions: 1 . Defendants City of Yakima and City of Union Gap shall pay to Plaintiff Murray Family LLC $140,000.00 (City of Yakima at $115,000.00 and City of Union Gap at $25,000.00); said checks shall be payable to Abeyta Nelson Injury Law, PS in trust for the Murray Family LLC ; 2. Plaintiff shall execute a release of all claims against the City of Yakima, City of Union Gap and PacifiCorp; 3. The parties will cooperate in formalizing this settlement with appropriate documentation; 4. The pending claim by Murray Family LLC will be dismissed with prejudice and without costs or attorneys fees; 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.