HomeMy WebLinkAbout05/18/2021 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 Gabbard 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.L.
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 Outfit, 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.
ITEM BUDGETED:
STRATEGIC PRIORITY: Public Trust and Accountability
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APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt resolution
ATTACHMENTS:
Description Upload Date Type
a Resolution-Plaintiffs Group 1 Settlement 5/5/2021 Resolution
❑ Contingent Settlement Agreement 5/6/2021 Contract
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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 at 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 Clear Tee, City Clerk
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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:
1. 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.