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HomeMy WebLinkAbout1988-03-08; City Council; 9317; Settlement Agreement4B# 7 TITLE APPROVAL OF SETTLEMENT OF MTG. 3/8/88 JOHNSTON V CITY OF CARLSBAD DEPT. RM RECOMMENDED ACTION: CITY MG R..* Approval of Resolution No. f'B-69 approving the General Release and Settlement of Claim and authorizing the payment of $77,975.11 as the City's contribution to the settlement of the Johnston case. ITEM EXPLANATION This lawsuit arose as the result of a traffic collision which occurred on Palomar Airport Road, east of El Camino Real, on September 4, 1985. The collision resulted in a fire which engulfed both vehicles. One driver was fatally injured and the other sustained severe and permanent injuries. A settlement agreement between the parties has been reached. requires the payment of $125,000.00 to the plaintiff. incident, the City was covered by an insurance policy under which the City retained the first $100,000.00 of exposure. As a result of negotiations with the insurance carrier, it was agreed that the City's self-insured retention of $100,000.00 would include the costs of defense. When the defense expenses were deducted, the remaining exposure to the City was $77,975.11. is the amount that the City is to pay as its portion of the settlement. The remainder of the settlement (the difference between $1 25,000.00 and $77,975.11 ) is to be paid by the City's insurance carrier. Attorney recommend approval of this settlement. The agreement At the time of the That The Risk Manager and the City It is not to be interpreted or construed as an admission of liability on the part of the City. It simply represents a resolution of the litigation which, under all of the facts and circumstances, is in the best interests of the City. FISCAL IMPACT The total cost of the settlement of this case is $77,975.11. There are sufficient funds in the City's Liability Reserve Account to cover the cost of this settlement . EXHIBITS 1. Resolution No. 88- b 9 . 2. General Release and Settlement of Claim. t - 1E 19 20 21 22 23 24 25 26 27 28 0 RESOLUTION NO. 88-69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE SETTLEMENT AND AUTHORIZING AN EXPENDITURE OF FUNDS FOR THE LAWSUIT ENTITLED JOHNSTON V. CITY OF CARLSBAD. WHEREAS, City Attorney and the Risk Manager recommend a settlement of the case entitled Johnston v. City of Carlsbad and the City Council agrees it is in the City's best interest; and WHEREAS, there are sufficient funds available in the liability self-insurance reserve account to pay the settlement, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the expenditure of $77,975.11 from the liability self-insurance reserve account is authorized for the settlement of said case, 3. That the City Council approve the General Release and Settlement of Claim Agreement attached hereto and made a part hereof and authorize disbursement of $77,975.11 from the liability self-insurance reserve account in accordance with said agreement. ... ... ... ... ... ... PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of - March , 1988, by the following vote, to wit: AYES: Council Members Kulchin, Pettine and Larson NOES: None ABSENT: Council Members Lewis and Mamaux IS\ Mayor Mayor Pro-Tern ATTEST: (SEAL) 1 2 '3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ".--- GENERAL RELEASE AND SETTLEMENT OF CLAIM For the sole consideration of One Hundred Twenty Five Thousand and no/100 ($125,000.00) Dollars, the undersigned hereby releases and further discharges the CITY OF CARLSBAD from all claims and demands, rights and causes of action of any kind the undersigned now has or hereafter may have on account of or in any way growing out of the damages resulting or to result from the incident occurring on or about September 4, 1985, which is the subject of San Diego Superior Court Case No. N33482. Further, the undersigned hereby agrees to release any and all claims and demands, rights and causes of action of any kind that may now have arisen or hereafter may arise as a result of the above incident, and further agree to hold the CITY OF CARLSBAD harmless, for and against any claim, lien or debt which has arisen or may arise from the incident described herein, including, but not limited to Worker's Compensation liens and medical liens of any type whatsoever. This release expresses a full and complete settlement of a liability claimed and denied on the part of all parties, regardless of the adequacy of the above consideration, and the acceptance of this release shall not operate as an admission of liability on the part of any party hereto. All rights given by Section 1542 of the Civil Code of California, which is quoted below, are waived by the undersigned. CIVIL CODE SECTION 1542: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." 1 4 *a 4 1 1 * 1 ! 1( 11 1: 1: 14 1E 1€ 15 18 IS 20 21 22 23 24 25 26 27 28 L- A By signing this General Release, the undersigned intends to give up and discharge all rights and claims to damages to person and/or property, even though some of such damages may not have shown themselves settlement. at the time of acceptance of this