HomeMy WebLinkAbout06/07/2022 06.F. Resolution authorizing a contingent settlement agreement by Cities Insurance Association of Washington, Munich Reinsurance, and the City of Yakima to resolve and settle the claim brought by Mario Garcia, Sr., et al. s�(4406\l';'
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.F.
For Meeting of: June 7, 2022
ITEM TITLE: Resolution authorizing a contingent settlement agreement by Cities
Insurance Association of Washington, Munich Reinsurance, and
the City of Yakima to resolve and settle the claim brought by Mario
Garcia, Sr., et al.
SUBMITTED BY: Ryan Bleek, Senior Assistant City Attorney
SUMMARY EXPLANATION:
This matter is on for consideration of a resolution consenting to a contingent settlement entered
into by Cities Insurance Association of Washington ("CIAW"), Munich Reinsurance ("Munich"),
and the City of Yakima to resolve and settle the claim brought by Mario Garcia, Sr., et al.
Settlement is contingent on Court approval of settlement entered into by settlement guardians ad
litem on behalf of plaintiffs. The plaintiffs filed their lawsuit on October 29, 2018, Yakima County
Superior Court Case No. 18-2-03001-39 entitled Mario Garcia, Sr., et al v. City of Yakima, et al.
The claim of the above-named plaintiffs against the City of Yakima was settled by CIAW, Munich,
and the City of Yakima through a mediation held on May 3, 2022, with discussions continuing into
May 4, 2022, subject to Yakima City Council's approval. A copy of the agreement is included.
The amount to be paid on behalf of the City of Yakima towards settlement of plaintiffs' claim is
$3,000,000, all of which shall be paid by the City's insurance through CIAW and Munich. The
City of Yakima has already paid its deductible for this claim and is paying no money toward
settlement of plaintiffs' claim.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt resolution.
ATTACHMENTS:
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Description Upload Date Type
D Res-Settlement Agreement 5/24/2022 Resolution
D agreement 5/25/2022 Cotter Memo
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RESOLUTION NO. R-2022-
A RESOLUTION approving the conditional settlement agreement entered into by Cities
Insurance Association of Washington ("CIAW'), Munich Reinsurance
("Munich"), and the City of Yakima to settle the claim brought against the
City of Yakima by Mario Garcia, Sr., et al.
WHEREAS, on October 29, 2018, a lawsuit was filed in Yakima County Superior Court
Case No. 18-2-03001-39 entitled Mario Garcia, et aL v. City of Yakima, et aL; and,
WHEREAS, through a mediation, settlement with plaintiffs, Mario Garcia, Sr. and Daisy
Garcia, as Co-Litigation Guardians ad Litem for Mario Garcia, Jr. and Richard L. Mathieu as
Litigation Guardian ad Litem for Sophie L. Garcia, individually, in the amount of $3,000,000 was
reached between CIAW, Munich, and the City of Yakima to resolve and conclude plaintiffs' claim
in the matter; and,
WHEREAS, plaintiffs agreed to execute a Release 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, and the City of Yakima is paying no money toward settlement of the
plaintiffs' claim; 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, Munich, the City
of Yakima, and the plaintiffs to resolve and conclude plaintiffs' claim, 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, Munich, and the City
of Yakima to resolve and settle the claims brought by the above-named plaintiffs, which will be
paid by CIAW and Munich. 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 June, 2022.
Janice Deccio, Mayor
ATTEST:
Sonya Clear Tee, City Clerk
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CR 2A Memorandum of Settlement Agreement
On May 3,2022, the parties engaged mediation settlement discussions in the matter Mario Garcia
et. al v. City of Yakima, et al, Yakima County Superior Court, Cause No. 18-2-03001-39, with
mediator Teresa Wakeen. Discussions continued May 4,2022. Under the agreement reached, the
parties agree as follows:
1. The City of Yakima, through its insurers, Cities Insurance Association of Washington
("CIAW")and Munich Reinsurance("Munich"),agrees to pay Plaintiffs Mario Garcia, Sr.
and Daisy Garcia, as Co-Litigation Guardians ad Litem for Mario Garcia, Jr. and Richard
L. Mathieu as Litigation Guardian ad Litem for Sophie L. Garcia, individually, (herein
"Plaintiffs"), a total of$ 3,000,000.00 (Three Million Dollars) in exchange for Plaintiffs'
execution of a full release of all past, current, future, or potential claims in law or equity,
including all claims for attorney's fees and costs,that have been or could have been asserted
with respect to the September 10, 2015 automobile accident involving Mario Garcia, Jr.
and Mitchell Fiedor ("Accident"), as described in the Amended Complaint filed by
Plaintiffs in Yakima County Superior Court, Cause No. 18-2-03001-39;
2. In exchange for said payment, Plaintiffs agree to execute a Settlement and Full Release of
all claims asserted against the City of Yakima ("Defendant") and any and all of its past,
current,or future agents,officers,and employees that includes an indemnification and hold
harmless releasing the City of Yakima and its past, current, or future agents, officers,
employees, and insurers, including by not limited to CIAW and Munich, from any and all
liens that may be asserted as a result of the Accident described in the Amended Complaint
filed by Plaintiffs in Yakima County Superior Court, Cause No. 18-2-03001-39. Plaintiffs
further agree to enter a stipulated order dismissing all claims with prejudice in the
aforementioned cause of action, with each party bearing their own costs. The Settlement
and Full Release will reflect that this is a full and final settlement of all claims that are,
have been, could have been, or may be asserted arising out of the Accident;
3. This settlement is contingent on approval by the Yakima City Council, which is expected
to convene on this matter on or about June 7, 2022;
4. This settlement is also contingent upon court approval for the minor settlement entered into
on behalf of Sophia Garcia and court approval of the settlement entered into on behalf of
Mario Garcia, Jr., who is incapacitated and has a litigation guardian ad litem. Plaintiffs
will pay the attorney's fees and costs for settlement guardian ad litem(s) reviewing and
seeking court approval of the settlements on behalf of Sophia Garcia and Mario Garcia,Jr.
5. Plaintiffs shall pay and satisfy any and all liens, claims for reimbursement, or subrogation
claims for medical expenses,time loss benefits paid,attorneys fees, guardian ad litem fees,
or otherwise, related to or arising out of their injuries or claims which are valid under
current Washington law,including but not limited to liens and/or claims for reimbursement
by Medicaid,Medicare,Labor&Industries,or any health insurer. Settlement is contingent
on formal Medicare approval for Mario Garcia Jr. and closing documents from Medicare
will be needed before the claim is considered officially concluded.
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6. Each party shall bear its own costs for the mediation with Teresa Wakeen; and
7. The parties agree that any disputes regarding the Settlement and Full Release and/or any
other matters pertaining to this settlement will be submitted to mediator Teresa Wakeen
for binding resolution.
Signed this 5th day of May, 2022.
3G 3-)PiuL
Bryan Smith Megan M. Coluccio
Counsel for Plaintiffs Counsel for Defendant City of Yakima