2011-095 RES APPROVING COMPROMISE SETTLEMENT BETWEEN THE CITY AND HOUSING ASSOCIATES INC AND DANIEL ALLGEIERRESOLUTION NO. 2011-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PAR[S, TEXAS;
AUTHORIZING AND APPROVING A COMPROMISE SETTLEMEIVT
AGREEMENT BETWEEN THE CITY OF PARIS, AND HOUSING ASSOCIATES
INC. AND DANIEL ALLGEIER IN CAUSE NO. 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
62°d 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.
ATTEST:
)ice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, ' orney
NO. 77918
CITY UF PARIS, TEXA.S §
Plainti~'f, . . . . . § . . .
§
V. . §
§
HOUSING A5SOCIATES, INC. §
AND DANIEL ALLGEIER §
Defendant. §
YN THC DTSTRICT COURT
62ND JUDICIAL DISTRICT
OF LAMAR COIJNTY, TEXAS
GUMPROMISE SETTLEMENT AGREEMENT AND RELEASE
Tliis agreeznent zs made between the Plaintiff, City of Paris, Texas and the Defendants,
Housing Associates, Inc. and Daniel Allgeier.
The parties to this agreement ha.ve a dispute that resulted in a lawsuit styled City of Paris,
Texas v. Housing Associates, Inc. and Daniel A11geier, Cause No. 77918 and is pre5ently pending
in the 62n° Judicial District Court of Lamaz County, Texas.
The dispute between the parties is a result of an agreement between Housing Associates, Tnc.
and the City of Paris, Texas for a housing infrastructure fund project. The date of the contract was
dated December 9, 1999.
The City.of Pazis, Texas subsequently filed suit against Housing Associates, Inc. and against
Daniel Allgeier, Individually.
All parties wish to dispose of the entire controversy and disputes between them, including
a11 ciaims 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 claims 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 agreement, or that may arise in
Compromice Settlement Agrecnwt
City of Parfa, Tcne v. Houdeg Assocfata, Inc.
aod Danid Allgder 1
(
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I
the future. However, the parties have negotiated this agreement in full knowledge of the possibility
of additional damages and claims, and intend this agreement to settle and finally dispose of al such
clauns or damages arising out of the above-described transaction, whether known or unknown.
To settle this matter it has been agreed that the Defendants, Housing Assaciates, Inc. and/or
Dauiel Allgeier sha11 pay the sum of One Hundred Thousand Dollazs and No/I OOths ($100,000.00)
to the City of Paris, Texas. This 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 tlus agreement has been
approved by the City Council of the City of Paris, Texas. Notification may be made by PlaintifPs
counsel by e-mail, fax, or letter directed to Ron Cohen as attorney foz Defendants. After said
notification, the sum of One Hundred Thousand Dollars and No/lOQths ($100,000.00) is to be
tencTered to tIie~City ofPaiis; Te~as ytlie De~eridarits as clescri -ecl a"-ove: Tlieiea;fter; the pai-~ies"sha11 file a Joint Motion to Dismiss with Prejudice and an Agreed Order of Dismissal with Prejudice
with taxable court costs taxed to the party incurring same sha11 be entered.
Each pariy shatl bear its own costs.
This agreement is made according to the laws of the State of Texas. 'I'he parties expressly
~
agree that this agreement is govemed 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 purposes.
By signing below the design.ated representatives of each of the parties warrants that he has
the necessary authority to execute this agreement.
Compromise 9ettlemeatAgreement
City of Paris, Tezas v. Aoueing Assoclatea, Tnc.
and Daniel Allgeier 2
THE CIT'Y OF PARIS, TEXAS
BY:
Authorized Representative
HOUSING ASSOCIA.TES, INC.
BY:
Authorized Representative
Daniel Allgeier
APPROVED AS TO FORM AND SUBSTANCE:
. .
James R. Rodgers, Attorney for The City of Paris, Texas
Ron Cohen, Attorney for Housing Associates, Inc. and
Daniel Allgeier
Compromise Settlcmeut Agnement
City of Paris, Tezas v. Houaing Associetea, Inc.
and Daniel Allgeier 3