2008-032-RES-approving a proposed compromise settlement agreement with the city of Clarksville, TX in the lawsuit against the city of clarksvilleRESOLUTION NO. 2008-032
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, bona fide 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 6th 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 28th day of January, 2008.
sse Jam Freelen, Mayor
ATTEST:
,
nice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
04/17%20u6 1~:22
NO. CVO1Q6x
CTTY OF P.ARIS, TEXAS § IN THE DISTRTCT COURT
ifz7ao r.v- /~vv
Plaiatiff, §
§
V. ~ 6'T'A JUDICIAL DISTRICT
~
CITY OF CLARKS'VILLE, TEXA.S §
Defendant, § OF RED RiVEIt COUNTY, TEXAS
COMF'Ra1kISE SETTLEMENT AGREEMEN'I'
Tbis ageement is between the City of Paris, Texas and the City of Clarksville, Texas.
.I.
1~ECITALS
i. There is a dispute betweem the parties to this agxeement that arose conceming parti.cipatian
in the Regianai Contrrolled Substaznce and Frevmtion Program. -
2. Litigation was instituted as a result of t]iis dispute. In particulax, tlie City of Pazis, Texas
instztuted a suit which was transferrea to the District Court of Red River Caunty, Texas, in which
the C x{y a f p ari,; T exas s ought d amages against the City o f C larksville, T exas. T he C ity a f ,
Clarksville, Texas denied liability_
3. Both g~rties to #his agreement conced.e that bona fide dispuies aud eonproversies exist
betweeia them botlz as to liability an.d the amount of damages, if an.y, that axe due because of the
dispute betweeta fihem.
4. Both parties wish to dispose of the entire controversy and dispute betureen them, inciuding
a11 claims and caiises af action of any kXnd that currently exist or that ma.y exist in the fizture that
relate i-n any way #,o the transaction or occturence desGribed in this agrement. The parties recagnize
A
that there rnay be claims or inju.zzes arising aut af tiie firansaction or occurrence descn`bed in this
Compromise Seuloment A2reemeriL ~
City of Paris, Texas Y. City qf ClaricsviIIe, Texas
EXHIBCT A..
:
04!1?!200i 14:22
agreernent that are unlcnow-n to the parties at the tirne of the execution of thi s agreement or that may
arise m the future. However, the parties have negatiated this agreernent in fuU knoWledge of the
possibilxty of additional clairns or injtzries, intend Es agreement to settle and finally dispose of a1I
such claims or injuries arising out of the abave-described transaction•
U.
TERlYIS OF ACREEMENT
In evn,sidezation of the u3utual promises and agreements contai.ned in this agreement,
includiA.g the recitals set forth above, the parties agree as foilows:
1. .'The City of Clarksville, Texas will pay to the CYty of Paris, Texas a total of
$44,000.00 payarle as follows: $10,000,00 will be paid on or before May 15, 2048. Thereaftez, the
City of Clarksville, Texas vzll pay the City of Pazis, Texas three additional$1 0,000.00 payments
an May 15, 2009, May 15, 2010, aDd May 15, 2011. No interest vvill be awing by the City af
C]arksville, Texas provided these payments are made on or before the dates deseribed hercin.
However, should -ihe City of Clarksvitle, Texas be delinquent or late in making aziy of the payments,
that interest wi,II. acerue on such late payments at the rate of five percent (5%) per annwnn. The
lawsuit described in this ageement will be mutually dismissed, with prejudice, with each party to
bear its ovm costs.
M.
This agreem.en.t is a comQromise of doubtful and disputed claims, notl3ing is this agzeemcnt
is a.n admission ar liabili{y of any party, and -nothing in this agreemen# may be interpxeted as an
admission of liabi.lity. Each pariy to this agrement expressly denies liability to every oth.er party
to this agreexnent. Compromisn Sc:tlcmee!t Agrecment 2
Ciry of Par'ss. Texas v- Ci,t}~ of Clarkbvillc, Texas
04;17I200d 14:zz
-fyyuo r .~~V.J i u va
Tv.
This agreement is made aecording to the laws of the State of Texas. The parties expressly
agree that thxs agreement is govezned by and will be construed in accordance with Texas law.
V.
This agreement is binding on and inures to the benefi# of the parties and theiT rinsPective heirs,
representatives, snccessars, and assign.s.
V'Y.
This ageement contaxns the entire agreement between the parties, It supercedes any and all
prior agreements, arrangexnents, or understandings betweeA the parties an ail subjects in a-ny way
related to the transactian or occuzrence described in this agreernent.
VI[.
Thi$ agr.ee'mer,t may be executed in a number of identical cpunterpazts, each af which will
be deemeci an original for all purposes•
VIII.
By signnig below the desigp.ated representatives of each af the parties wa~rrants that he has
the necessary autlivrityto execute this agreement. Specifically, the City of Clarksville, Texas will
provide to the City.of Paris, Texas dacumentation that ihe City Council ofthe Czty of Clarksville,
Texas has approved the execution of this Camp:mmise Settlement Ageement.
IX.
Upon receipt of the first paymexxt af $ lO,OQQAO as described abave, as we11 as receipt afthe
documentation o; the approval af the agreenent by the City of Clarksville, Texas, then the City of
Paris, Texas will file the appropriate Motion to Disrniss this action with prejudice.
Compmntise SttSlcmenz Agreement 3
Citv of Paris. Texas v_ C:ity af Clartcs,611e, Texas
G4'17/2006 14;22
BX:
BY:
*-)vau r.vvv i-
THE CFTY OF CLARKSViLLE, TEXA.S
Authorized Representative
THE CITy pk' PARIS, TEXAS
Authazized Representati-Ve
APPRaVED AS 74 FORM AND SUBSTANCE:
James R. Rodgers, Attarney far the City of
Paris, Texas
Tmy Hornsby, Attorney for the City of
Ciarksviile, Texa5
Cumpromise 5eri1crncni Agreement 4
City of Paris, Tcxas v. City c~f Clarksville, Tzxas