08 Approve a Resolution approving the propsed Compromise Settlement of City of Paris v. City of Clarksville lawsute filed Nov. 23, 2005CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
4/18/08
Council Date: Legal Department W. Kent McIlyar 8
4/28/08
RECOMMENDED MOTION:
Move to approve the a Resolution approving the proposed Compromise Settlement of
City of Paris v City of Clarksville lawsuit filed November 23, 2005.
POLICY ISSUE~S~:
Legal and fiscal.
BACKGROUND:
City of Paris filed its Original Petition against the City of Clarksville on November 23,
2005 in the 62°d District court, Lamar County, Texas; and,
The City's case against the City of Clarksville was for breach of contract, specifically for
breach of an Interagency Agreement between the cities to share costs for the Regional
Drug Task Force.
The City is represented in this case by James Rodgers with the Moore Law Firm, and has
been discussing settlement options with the City of Clarksville; and,
The terms of the proposed Compromise Settlement Agreement call for that the City of
Clarksville to pay to the City of Paris a total of $40,000.00, in the following installments:
$10,000.00 will be paid on or before May 15, 2008 with three additional $10,000.00
payments due on May 15, 2009, May 15, 2010, and May 15, 201 1.
BOARD~COMMISSION RECOMMENDATION:
N/A
EXHIBITS:
Resolution and Proposed Compromise Settlement Agreement
ACTION: BUDGET INFO:
^ Financial Report ^ Minute Order Expense $
^ Department Report ®Resolution Budgeted Amt. $
^ Presentation ^ Ordinance YTD Actual $
^ Public Hearing ^ Other Acct. Name
Acct. Number
FISCAL NOTES:
REVIEWED AND APPROVED BY:
® Administration ®City Cletk ^ Community Development ^ EMS/IT ^ Finance ^ Fire
^ Municipal Court ®Legal ^ Library ^ Police ^ Eng./Public Works ^ Utilities
City of Paris ., Revised 2/04/08
~~ ~~ i
DRAFT
Attorney\reswork\current\COP v City of Clarksville Settlement Res 2008
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING A PROPOSED COMPROMISE SETTLEMENT AGREEMENT
WITH THE CITY OF CLARKSVILLE, TEXAS IN THE CITY'S LAWSUIT
AGAINST THE CITY OF CLARKSVILLE; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City of Paris filed its Original Petition against the City of Clarksville
on November 23, 2005 in the 62nd District court, Lamar County, Texas; and,
WHEREAS, the City's case against Clarksville was for breach of contract, specifically
for breach of an Interagency Agreement between the cities to share costs for the Regional
Drug Task Force. The City sought damages from the City of Clarksville for amounts owed
under the Interagency Agreement, costs, interest and attorneys fees; and,
WHEREAS, bonafide disputes and controversies exist between the parties both as to
liability and amount of damages in this case, and in order to avoid the expense and
uncertainty of litigation the parties propose the following Compromise Settlement
Agreement; and,
WHEREAS, having considered the facts, law and the strengths and weaknesses of
the City's position in this lawsuit and having reviewed the terms of the Compromise
Settlement Agreement, the City Attorney has recommended that this lawsuit be settled
with the City of Clarksville under the terms and consideration set forth in the Compromise
Settlement Agreement Attached hereto and incorporated herein as Exhibit A; and,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the proposed Compromise Settlement Agreement between the
City of Paris and the City of Clarksville, in Cause No. CV01061 pending in the 6~ District
Court, Red River County, Texas, be, and is hereby approved by the City Council of the City of
Paris and the Mayor is hereby authorized to execute the Compromise Settlement
Agreement on behalf of the City Council of the City of Paris and any other documents
necessary for the completion of the settlement described herein.
PASSED AND ADOPTED this the 28~ day of January, 2008.
Jesse James Freelen, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
(I~I~j;u
04/17/208 14:22
NO. CV01Qbl
#3909 P. 003 /OG6
CITY OF PARIS, TEXAS § YN THE DISTRICT COURT
Plaintiff, §
~~ § 6TA JUDICIAL DISTRICT
CITY OF CLARKS'V'II.LE, TEXAS §
Defendant, § OF RIED RIVER COUNTY, TEAS
CQMPROMISI'; SETTLEMEN'T' AGREEMENT
This agreement is between the City of Paris, Texas and the City of Clarksville, Texas,
.` I.
RECITALS
1. There is z dispute between the parties to this agreement that arose concerning participatioxl
in the Regional Cozztrolled Substance and Prevention program. -
2. Litigation was instituted as a result of this dispute. In particular, the City of Paris, Texas
instituted a suit which was transferred to the District Caurt of Red River Caunty, Texas, in which
the C xty a f P aril; T exas s ought d am.ages against the City o f C larksville, T exas. T he C ity o f
Clarksville, Texas denied liability_
3. Both parties to this agreement concede that bona fide disputes and controversies exist
between there both as to liability and the amount of damages, if any, that axe due because of the
dispute betwee;~ fem.
4. $oth parties wish to dispose of the entire controversy and dispute betuteen them, including
all claims anal causes of action of any kind that currently exist or that may exist in the future that
relate in any way to the transaction or occurrence descnbed in this agreement. The parties recognize
a
that there may be claims or injuries arising out of the transaction ar occurrence descn~ed in this
Compromise Seutcinent Agreement
City of Paris, Texas v. City of Claricsvilie, Texas l
EXHIBIT .~
.. (l(~;ii.1
0411?!ZQO~ 14:22
#396E ?.004 /006
agreement that are uttlcnowm to the parties at tl-e time of the execution of this agreement or that may
arise in the future. However, the parties have negotiated this agreement in full itrtowledge of the
possibility of additional claims or injuries, intend this agreement to settle and finally dispose of all
such claims or in}yes arising out of the above-described transaction.
i~.
TER~'IS OF AG~EMEN'T
In consideration of the mutual promises and agreements contained in this agreement,
including the recitals set forth above, the parties agree as follows:
1. .The City of Clarksville, Texas will pay to the City of Paris, Texas a total of
$40,000.00 payal?le as follows: $1 O,OOp.00 will be paid on or before May 1 S, 2008. Thereafter, the
City of Clarksville, Texas X11 pay the City of Paris, Texas three additional $ ] 0,000.00 payments
ott May 1 S, 2009, May 15, 2010, and May 15, 2011. No interest will be awing by the City of
Clarksville, Texas .provided these payments are made on ar before the dates described herein.
However, should ~~1ie Ci ty of Clarksville, Texas be delinquent or late in making any of the payments,
that interest will. accrue on such late payments at floe rate of five percent (5%) per annum. The
lawsuit described in this a~eement will be mutually dismissed, with prejudice, with each party to
bear its own, costs.
Yl<I.
This agreement is a compromise of doubtful and disputed claims, nothing is this agreement
is an admission ai' liability of any party, and nothing in this agreement maybe interpreted as an
admission of liabr`.lity. Each, party to this agreement expressly denies liability to every other party
to this agreement.
['ompromise Sexlcmex!t A~[ectnent
City of Paris, Texas v. Cite of Clarksville, Texas 2
ry (l (;::11
O~i1~~2008 14:22 #3968 P.D05 /D06
JV.
This agreement is made according to the laves of the State of Texas. The parties expressly
agree that this agreement is governed by and will be construed in accordance with Texas law.
'V.
This agreement is binding on and mares to the benefit of the parties and tl~.eix respecti ve heirs,
representatives, s~:ccessors, anal assi~iis.
~'Y.
This a~eeinent contains the entire agreement between the parties. It supercedes any and all
prior agreements, arrangements, or understandings between the parties on all subjects in any vvay
related to the transaction or occuxxenee described in this agreement.
~I[.
This agreement maybe executed is a number of ideniical counterparts, each of which will
be deemed an original for all purposes.
VILI.
By signing below the designated representatives of each. of the parties warrants that he has
the necessary autk~ority to execute this agreement. Specifically, the City of Clarksville, Texas will
provide to the City.of Paris, Texas documentation that the City Council ofthe City of Claticsville,
Texas has approved the execution ofthis Coznprornise Settlement Agreement.
IX.
Upon receipt of the first paymetxt of $10,000.00 as described above, as well as receipt of the
documentation o; the approval of the agreement by the City of Clarksville, Texas, then the City of
Paris, Texas will file the appropriate Motion to Dismiss this action with prejudice.
Compromise Settlement Agreement 3
City of Paris, Texss v. City of Clarksv,lle, Texas
~1{+ `(..
01/17/2008 14:22
BY:
BY:
#3968 P.006 /006
THE CITY OF CLARK.SVILLE, TEXA$
Authorized Representative
THE CITY OI~ pARIS, TEXAS
Auth~oz~ized Representative
APPROVED AS TO pORM AND SUBSTANCE:
James R. Rodgers, Attorney for thie City of
Paris, Texas
Troy Hornsby, Attorney for the City of
Clarksville, Texas
Compromise Seitlrmcnt Agreement
City of Paris, Tc+cas v. City of Clazlsville, Texas 4
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