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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 ~~~'.~.: