29-RESOLUTION AUTHORIZING/APPROVING COMPROMISE SETTLEMENT AGREEMENT BETWEEN THE CITY AND HOUSING ASSOCIATES AND DANIEL ALLGEIERCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
12/07/ 11
Council Date:
City Attorney
Kent McIlyar
29.
12/12/11
RECOMMENDED MOTION:
Deliberate and act on a resolution authorizing and approving a Compromise Settlement Agreement
between the City of Paris, and Housing Associates, Inc. and Daniel Allgeier in Cause No. 77918; and
authorizing the City Manager to negotiate and execute all necessary documents.
POLICY ISSUE(S):
Legal, Fiscal
BACKGROUND:
This item was discussed in Executive Session.
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution and Settlement Agreement
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
❑ Department Report ~ Resolution
Budgeted Amt.
❑ Presentation ❑ Ordinance
y'I'D Actual
❑ Public Hearing ❑ Other
Acct. Name
Acct. Number
Fisctu. NoTES:
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Engineering, Planning &Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Public Works ❑ Utilities
City of Paris Revised 2/04/08
Draft
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
AUTHORIZING AND APPROVING A COMPROMISE SETTLEMENT
AGREEMENT BETWEEN THE CITY OF PARIS, AND HOUSING ASSOCIATES
INC. AND DANIEL ALLGEIER IN CAUSE N0. 77918; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, in 2009 the City of Paris filed a breach of contract lawsuit against
Housing Associates Inc. and Daniel Allgeier individually related to issues arising from a
1999 Housing Infrastructure Fund Project; 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
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 Housing Associates Inc. and Daniel Allgeier, Cause No. 77918 pending in the
62nd District Court, Lamar 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 12th day of December, 2011.
A.J. Hashmi, M.D., Mayor
17 J
NO. 77918
CITY C1F PARIS, TEXAS § IN THE DYSTRICT COURT
_ _Plaintiff, §
§
V. § 62ND JUDICIAL DISTRICT
§
HOUSING ASSOCIATES, INC. §
AND DANIEL ALLGEIER §
Defendant. § OF LAMAR COUNTY, TEXAS
COMPROMISE SETTLEMENT AGREEMENT AND RELEASE
This agreement i.s znade between the Plaintiff, City of Paris, Texas and #he Defendants,
Housing Associates, Inc. and Daniel Allgeier.
The parties to this agreement have a dispute that resulted in a lawsuit styied City of Paris,
Texas v. Housing Associates, Inc. and Daniel Allgeier, Cause No. 77918 and is presently pending
in the 62°a Judicial District Court of Lamaz Couanty, Texas.
The dispute between the parties is a result of an agreement between Housing Associates, Inc. ;
and the City of Paris, Texas for a housing infrastructure fund project. The da.te of the contract was
dated December 9, 1999.
The City. of Paris, Texas subsequently filed suit against Housing Associates, Inc. and against
Daniel Allgeier, Individually.
All parties wish ta dispose of the entire controversy and disputes between them, including
a.ll claims and causes of action of any kind that currently exist or that may exist in the future in any
way to the transaction or occurrence described in this agreement. The parties recognize that there
may be ciaims or damages arising out of the transaction or occurrence described in this agreement
that are unknown to the parties at the time of the execution of this agreernent, or that xxinay arise in
Campromise Setdemeat Agreement
City of Paria, Texas v. Housing Associates, Inc.
aod Daniel Allgeier
EXHIBIT ~
1- 77 7
the futuze. However, the parties have negotiated this agreement in full knowledge of the possibility
of additional damages and claims, and intettd this agreement to settle and finally dispose of al such
claims or damages arising out of the above-described transaction, whether known ar unknown.
To settle this matter it has been agreed that the Defendants, Housing Assaciates, Inc. and/or
Daniel Allgeier shall pay the sLUn of One Hundred Thousand Dollars and No/l 00ths ($100,000.00)
to the City of Paris, Texas. Tlus payment is to be made to the City of Paris, Texas on or before seven
(7) days after the Defendants, through their counsel, are notified that tkxis agreement has been
approved by fihe City Council of the City of Paris, Texas. Notification may be made by Plaintiff's
counsel by e-mail, fax, or letter directed to Ron Cohen as attorney for Defendants. After said
notification, the sum of One Hundred Thousand Dollars and No/100ths ($100,000.00) is to be
tendered to tlie City of Paris, Texas by tlie Defendanfs as descn'lied above: Theieafter; tlie paities ~
shall file a Joint Motion to Dismiss with Prejudice and an Agreed Order of Dismissal with Prejudice
with taxable court costs taxed to the pariy incwrriung same sha11 be entered.
Each party sha11 beat its own costs.
This agreement is made according to the laws of the State of Texas. "The parties expressly
agree that this agreement is governed by, and will be construed and enforced in accordance with
Texas Iaw.
This agreement may be executed in a number of identical counterparts, each of which will
be deemed an original for a11 putposes.
By signing below the designated representatives of each of the parties warrants that he has
the necessary authority to execute this agreement.
Compromise Settlement Agreement
City- of Paris, Tezas v. Aousing Associates, Inc. 2
and Daniel Aligeier
178
THE CITY OF PARIS, TEXAS
BY:
Authorized Representative
HOUSING ASSOCIATES, iNC.
BY:
Authorized Repzesentative
Daniel Allgeier
APPROVED AS TO FORM AND SUBSTANCE:
James R. Rodgers, Attorney for The City of Paris, Texas
Ron Cohen, Attorney far Housing Associates, Inc. and
Daniel Allgeier
Compromise Settlement Ageement
City af Paris, Tezas Y. Housing Associetes, Inc. 3
and Daniel A1lgeier
1/ S