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.
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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.
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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)
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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."
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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