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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 ( ~ 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