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HomeMy WebLinkAboutR-2021-118 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.A RESOLUTION RESOLUTION NO. R-2021-118 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 al. 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 7th day of September, 2021. ATTEST: Sonya ar Tee, City Clerk » Patricia Byers, Mayor SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS This Settlement Agreement and Release ofAll Claims sets forth the terms of settlement reached between Plaintiffs Doug and Dnouv/yn Mayo and Buvvvinn Outfit, Inc., ("Plaintiffs") and City nyYakima (^De5:ndunt`). This Agreement is intended to be uOu)! and fiucd couo|udou of all claims and disputes between these Plaintiffs and this Defendant arising out ofthe uizcunnmionnem included in and related to Plaintiffs Yakima County Superior Court case against this Defendant, NO. 19-2-01964-39. l. This Defendant agrees to pay these Plaintiffs the total sum ofone-hundred eighty- two thousaudandOvcbundr*ddo|kna,ondzo,ouunts/$)Q2^500.00O8[Ainucwmoneyino|uuivc nfall special and general damages, attorneys' fees, costs, and expenses. The amounts paid are for reimbursement for all damages suffered in the South Wenas Fire in June 2017. 2. Plaintiffs, individually and onbehalf o[any marital community, and including their corporation, Haywire OutfiLlnc.,'nbndyaccept the above consideration, receipt ofwhich iohereby ocbnnvvrdgcd and accepted, and hereby forever releases, acquits, and discharges this Defendant; its insurers, third -patty administrators; heirs, executors, administrators, agents, employees, and uuoiguy; and all other persons, firms or corporations |iah|u or who might be claimed to he |iubie, none of whom admit any liability to the undersigned but all expressly deny any liability, from any and all o|oinuu including but not limited to personal injury claims, property loss, |oan of consortium claims, demands, damages, actions, causes of action or suits of any kind or nature whatsoever, and particularly ooaccount ofall injuries and damages, known and unknown, both to person and property, which have resulted or may inthe future develop from the events occurring 000rabout June 20|7fire off 9Venus Road, in Yakima County, Washington, and which are the subject ofa lawsuit commenced iuthe Yakima County Superior Court, auCause NO. 19-2-01964'39. l Plaintiffs, individually and mubehalf ofany marital community and including their corporation, Haywire OutfiL lnu.,all further agree tohold harmless and indemnify this Defendant; its insurers; third -party administrators; heirs, executors, administrators, agents, employees, and umoGna and all other persons, firms or corporations liable o«who might hcclaimed bm be liable, from any and all claims asserted by any third parties or lien holders, including, but not limited to Medicare covered expenses, all worker's compensation |icuu, claims arising under QCW0O.44 aodBCVV 74.09, any nondico| liens, the State ofWashington, any other insurance carriers, or any other applicable lien and/or subrogation ciuiona oumnued by any third pudY or entity vvhiob may arise out ofthe incident described above ao10 oragainst the proceeds of this settlement. 4. Plaintiffs, individually and onbehalf nfany marital community and including their corporation, }fuvp/ire Outfit, Inc., upon advice oftheir counsel, and in accord with this rc±onc, agree that any and all applicable property, medical and other liens related to this litigation are to be settled, compromised, or paid out of the settlement proceeds, that Medicare and any other liens related to this litigation are to be settled, compromised, or paid out of the settlement proceeds, and that Medicare and any other lien u|uimo are the sole responsibility of these Plaintiffs, with nothing further to be sought from this Defendant. In the event that this information is false or in any way incorrect, these Plaintiffs, expressly warrant and agree that said liens will be their sole responsibility and will be compromised or paid from these settlement proceeds with nothing further tobusought from this Defendant. SETTLEMENT AGREEMENT AND RELEASE 0F ALL CLAIMS, MAY0AND HAYWIRE OUTFIT INC 1 5. It is understood and agreed that this Settlement is the compromise of disputed claims, and that the payment ionot tobcconstrued uxun admission ofliability on the part ofthis Defendant or its insurers, administrators, agents, attorneys, nremployees, by whom liability is expressly denied. h. The undersigned 6c,ebv declares that the terms of this Agreement have been completely read and are fully understood and voluntarily accepted for the purpose of making a full and fiuod compnnon(nu, adjuoUncnt, and settlement nfany and all oluinoo, disputed or otherwise, on account nfthe injuries nnddnonogesnnnndnondubnve,andfbrtbe express purpose ofprecluding forever any further oradditional claims arising out o[the aforesaid accident as to this Defendant. Documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes ofthis Agreement and all matters related thereto, with such scanned and electronic signatures having the same legal effeLL aa original signatures, This imefbecthedhi 2021. Signed Doug Mayo)l 11 aintif Signed e) Bmnwyn Wyo,Plainti(V n"."xx""" J Owner Haywire Outfit [no,J)laintiff , CITY CONTRACT RESOLUTION NO: - Date: SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS, MAYO AND HAYWIRE OUTFIT INC - 2 adut-,uoyt CI v itupo uu. cr 41E) L,"001.1,44jti SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS This Settlement Agreement and Release of All Claims ("Agreement") sets forth the terms of settlement reached between Plaintiff Murray Family LLC, ("Plaintiff') and City of Yakima ("Defendant"). This Agreement is intended to be a full and final resolution of all claims and disputes between Plaintiff and this Defendant arising out of the circumstances included in and related to Plaintiffs Yakima County Superior Court case against this Defendant, NO, 19-2-01964- 39. 1. This Defendant agrees to pay Plaintiff the total sum of one -hundred and fifteen thousand dollars and zero cents ($115,000.00 USD) in new money inclusive of all special and general damages, attorneys' fees, costs, and expenses. The amounts paid are for reimbursement for all damages suffered in the South Wenas Fire in June 2017. 2. Plaintiff, including all governors, members, heirs, and on behalf of any marital community of the same, accepts the above consideration, receipt of which is hereby acknowledged and accepted, and hereby forever releases, acquits, and discharges this Defendant; its insurers, third -party administrators; heirs, executors, administrators, agents, employees, and assigns; and all other persons, firms or corporations liable or who might be claimed to be liable, none of whom admit any liability' to the undersigned but all expressly deny any liability, from any and all claims including but not limited to personal injury claims, property loss, loss of consortium claims, demands, damages, actions, causes of action or suits of any kind or nature whatsoever, and particularly on account of all injuries and damages, known and unknown, both to person and property, which have resulted or may in the future develop from the events occurring on or about June 201'7 fire off Wenas Road, in Yakima County, Washington, and which are the subject of a lawsuit commenced in the Yakima County Superior Court, as Cause NO: 19-2-01964-39. 3. Plaintiff, including all governors, members, heirs, and on behalf of any marital community of the same, further agrees to hold harmless and indemnify this Defendant; its insurers; third -party administrators; heirs, executors, administrators, agents, employees, and assigns; and all other persons, firms or corporations liable or who might be claimed to be liable, from any and all claims asserted by any third parties or lien holders, including, but not limited to Medicare covered expenses, all worker's compensation liens, claims arising under RCW 60,44 and RCW 74.09, any medical liens, the State of Washington, any other insurance carriers, or any other applicable lien and/or subrogation claims asserted by any third party or entity which may arise out of the incident described above as to or against the proceeds of this settlement. 4. Plaintiff, including all governors, members, heirs, and on behalf of any marital community of the same, upon advice of counsel, and in accord with this release, agrees that any and all applicable property, medical and other liens related to this litigation are to be settled, compromised, or paid out of the settlement proceeds, that Medicare and any other liens related to this litigation are to be settled, compromised, or paid out of the settlement proceeds, and that Medicare and any other lien claims are the sole responsibility of Plaintiff, with nothing further to be sought from this Defendant. In the event that this information is false or in any way incorrect, Plaintiff, expressly warrants and agrees that said liens will be its sole responsibility and will be compromised or paid from these settlement proceeds with nothing further to be sought from this Defendant. SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS, MURRAY FAMIL\ LLC- LJULAIOlyi .1 CI lt,11,1/1JZ VrA4 I 40 4-t.4013M-4JVV-0.1,0,1-r zr u.tarouo 5. It is understood and agreed that this Settlement is the compromise of disputed claims, and that the payment is not to be construed as an admission of liability on the part of this Defendant or its insurers, administrators, agents, attorneys, or employees, by whom liability is expressly denied. 6. The undersigned hereby declares that the terms of this Agreement have been completely read and are fully understood and voluntarily accepted for the purpose of making a full and final compromise, adjustment, and settlement of any and all claims, disputed or otherwise, on account of the injuries and damages mentioned above, and for the express purpose of precluding forever any further or additional claims arising out of the aforesaid accident as to this Defendant. Documents executed, scanned and transmitted electronically and electronic signatures shall be deenied original signatures for purposes of this Agreement and all matters related thereto, with such scanned and electronic signatures having the same legal effect as original signatures. This Agreement is effective this mex1.r1.1‘''11Av'Iof tc:NX.1"1,- , 2021. 00.4u&gravd hy• Sign dV. tiady GoVernor, Murray Faintly LLC, Plaintiff CITY CONTRACT NO' RESOLUTION NO: 9/2 7/2021 Date: SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS, MURRAY FAMILY EEC- 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT 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