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HomeMy WebLinkAbout2010-02-16; City Council; 20113; Settlement Telacu Construction ManagementCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 20,113 2/16/10 CA REPORTING OUT THE SETTLEMENT BETWEEN TELACU CONSTRUCTION MANAGEMENT AND CITY OF CARLSBAD DEPT. DIRECTOR CITY ATTORNEY^^g^ CITY MANAGER (\ RECOMMENDED ACTION: There is no action to be taken by the City Council. ITEM EXPLANATION: The parties have now settled this issue under the authority given to the City Attorney by the City Council at its closed session of November 10, 2009. This item satisfies the Brown Act requirement to report the fact of a settlement approved in a prior closed session and makes the terms and conditions of the settlement available to the public. FISCAL IMPACT: The City has made a final contractual payment to Telacu in the amount of $229,769.04 of which $150,000 the City had been withholding in retention funds and $72,000 from contract contingency funds. ENVIRONMENTAL IMPACT: Reporting out the fact of Settlement is not a "project" within the meaning of CEQA and therefore environmental review is not required pursuant to CEQA Regulation 15061(b)(3). EXHIBITS: 1. Notice of Entry of Dismissal dated January 11, 2010. 2. Settlement and Release Agreement on file with the City Clerk. DEPARTMENT CONTACT: Ronald R. Ball 760-434-2891 FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D 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 GREGORY L. RIPPETOE, Bar No.: 98455 LAURA A. MILES, Bar No.: 238278 RIPPETOE MILES, LLP 2 Park Plaza, Suite 525 Irvine, California 92614 Telephone: (949) 852-0020 Facsimile: (949)852-0021 Attorneys for Plaintiff TELACU CONSTRUCTION MANAGEMENT, INC. SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN DIEGO, NORTH COUNTY DIVISION TELACU CONSTRUCTION MANAGEMENT, INC., a California Corporation, Plaintiff, v. CITY OF CARLSBAD, a Municipal Corporation; and DOES 1 through 100, inclusive, Defendants. CASE NO. 37-2009-00060436-CU-BC-NC Assigned for all Purposes to: Judge Robert P. Dahlquist Department N-29 Hearing Pending: None NOTICE OF ENTRY OF DISMISSAL Date Complaint Filed: October 2, 2009 Trial Date: Not Set TO ALL PARTIES HEREIN AND THEIR ATTORNEYS OF RECORD: PLEASE TAKE NOTICE that an Order of Dismissal of the entire action, with prejudice, was filed in the above-entitled action on January 5, 2010. A conformed copy of the Order of Dismissal is attached hereto. DATE: January 11,2010 RJPPETO . RIPPETOE A. MILES Utorneks for Plaintiff U CONSTRUCTION iGEMENT, INC. 1 NOTICE OF ENTRY OF DISMISSAL CIV-110 ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address): GREGORY L. RIPPETOE, Bar No. 98455 LAURA A. MILES, Bar No. 238278 RIPPETOE MILES, LLP 2 Park Plaza, Suite 525 Irvine, CA 92614 TELEPHONE NO.: (949) 852-0020 FAX NO. (Optional): ( 9 4 9 ) 852-0021 E-MAIL ADDRESS (Optional): ATTORNEY FORfName): Plaintiff TELACU CONSTRUCTION MANAGEMENT, INC. SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN DIEGO STREET ADDRESS: 325 S. Melrose Avenue MAILING ADDRESS: CITY AND ZIP CODE Vista, CA 92081 BRANCH NAME NORTH COUNTY DIVISION PLAINTIFF/PETITIONER: TELACU CONSTRUCTION MANAGEMENT, INC. DEFENDANT/RESPONDENT: CITY OF CARLSBAD, et al . REQUEST FOR DISMISSAL 1 1 Personal Injury, Property Damage, or Wrongful Death 1 1 Motor Vehicle 1 1 Other 1 Family Law I I Eminent Domain 1 1 Other (specify) : FOR COURT USE ONLY > ' t v _ ' ' CASE NUMBER: 37-2 009- 0006043 6 -CU-BC- NC - A conformed copy will not be returned by the clerk unless a method of return is provided with the document. - 1. TO THE CLERK: Please dismiss this action as follows: a. (1) QT] With prejudice (2) I I Without prejudice b. (1) r~l Complaint (2) I I Petition (3) I I Cross-complaint filed by (name): on (date): (4) I I Cross-complaint filed by (name): on (dafej: (5) I X I Entire action of all parties and all causes of action (6) I I Other (specify):* 2. (Complete in all cases except family law cases.) I | Court fees and costs were waived for a party in this case. (This infonrtation i checked, the declaration on the back of this form must be completes). Date: January 4, 2010 GREGORY. L. _RIPPETOE CTYPE OR PRINT NAME OF I X I ATTORNEY I I PARTY WITHOUT ATTORNEY) *lf dismissal requested is of specified parties only of specified causes of action only, or of specified cross-complaints only, so state and identify the parties, causes of action, or cross-complaints to be dismissed. y be obtah the clerk. If this box is / (SIGNATURE) ' or part* wBhout attorney forPlaintif f TELACU 3NSTRUCTFJON MANAGEMENT, INC. 'X~| Plajjwff/Petitioner IZ~1 Defendant/Respondent iss - complainant 3. TO THE CLERK: Consent to the above dismissal is hereby given. Date: fTYPE OR PRINT NAME OF I I ATTORNEY I I PARTY WITHOUT ATTORNEY) ** If a cross-complaint - or Response (Family Law) seeking affirmative relief - is on file, the attorney for cross-complainant (respondent) must sign this consent if required by Code of Civil Procedure section 581 (i) or (j). (SIGNATURE) Attorney or party without attorney for:. I I Plaintiff/Petitioner I I Defendant/Respondent I I Cross - Complainant (To*be completed by clerk) ^ - 4. L^jjJTsmissal entered as requested on (date): J/\/Y Q D 5. I I Dismissal entered on (date): as to only (name): 6. I I Dismissal not entered as requested for the following reasons (specify): 7. a. I xi^Attorney or party without attorney notified on (date): • b. [ | Attorney or party without attorney not notified. Filing party tailed to provide I I a copy to be conformed I I means to return conformed copy Date: ,. . . . Clerk, by _", Deputy Page 1 of 2 Form Adopted for Mandatory use Judicial Council of California CIV-110 [Rev. July 1,2009] REQUEST FOR DISMISSAL Code of Civil Procedure, § 581 et seq.; Gov. Code, § 68637(c); Cal. Rules of Court, rule 3.1390 1 PROOF OF SERVICE 2 I am employed in the County of Orange, State of California. I am over the age of 18 and not a party to the within action. My business address is at Rippetoe Miles, LLP, 2 Park 3 Plaza, Suite 525, Irvine, California 92614. On January J^L , 2010,1 served the foregoing document described as: NOTICE 0 ENTRY OF DISMISSAL on all other parties and/or their attorney(s) of record to this actic by placing a true copy thereof in a sealed envelope as follows: ***6 * * * SEE ATTACHED LIST 7 BY MAIL I am a resident of, or employed in, the county where the mailing occurs; I am over the age of 18 years and am not a party to the cause. I am readily familiar with the business1 practice for collection and processing of correspondence for mailing with the United States Postal Service. The correspondence will be deposited with the United States Postal Service this same day in the ordinaiy course of business. The address(es) shown above is(are) the same as shown on the envelope. The envelope was placed for deposit in 10 the United States Postal Service at Rippetoe Miles, LLP in Irvine, California on January ^ , 2010. The envelope was sealed and placed for collection and mailing with first-class 11 prepaid postage on that date following ordinary business practices. Service made pursuant to CCP § 1013a(3), upon motion of a party served, shall be presumed invalid if the postal 12 cancellation date or postage meter date on the envelope is more than one day after the date of deposit for mailing contained in the affidavit. 13 14 .. State I declare under penalty of perjury under the laws of the State of California that 15 the foregoing is true and correct to the best of my knowledge. 16 Executed on January 12—, 2010, at Irvine, California. 17 18 Catherine Amante (Signature 19 20 21 22 23 24 25 26 27 28 NOTICE OF ENTRY OF DISMISSAL SERVICE LIST Case Name: TELACU Construction Management, Inc. v. City of Carlsbad Case Number: 37-2009-00060436-CU-BC-NC Our File Number: TCM004-GLR/LAM Ronald C. Kemp, Esq. Deputy City Attorney City of Carlsbad 1200 Carlsbad Village Dr. 7 Carlsbad, CA 92008 Telephone: (760)434-2891 Facsimile: (760) 434-8367 Attorney for Defendant City of Carlsbad 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOTICE OF ENTRY OF DISMISSAL SETTLEMENT AND RELEASE AGREEMENT This Settlement 'and Release Agreement ("Agreement") is made by and between the following parties TELACU Construction Management, Inc. ("TCM") and City of Carlsbad ("CITY") and all related affiliates, companies and assignees. The above-referenced parties may be referred to collectively herein as "the Parties." RECITALS A. TCM and CITY entered into a Contract for the City Library Learning Center - Contract No. 3771 and 4001 ("Contract") in the original amount of $4,015,000.00 for the construction of a City Library Learning Center ("Project"). B. There is currently litigation pending between the Parties with respect to the Project entitled TELACU Construction Management, Inc. v. City of Carlsbad, Case No. 37- 2009-0006043 6-CU-BC-NC (the "Complaint"). C. TCM asserts in the Complaint that it is entitled to recover claims for breach of contract, breach of implied warranty of plans/specifications, misrepresentation of plans and specifications, equitable adjustment for delay and disruption, and violation of prompt pay statute in the total amount of not less than $348,702.00 (collectively, the "Claim"). CITY has disputed the Claim and asserts that TCM was responsible for delays by not prosecuting the work in a timely manner. D. The Parties wish to settle and resolve their differences concerning the Project, the Contract and the Claim subject to the terms and conditions hereto. ARTICLE I The Parties have agreed to resolve their differences and to settle this entire matter between them once and for all, as set forth below. The Parties agree to waive the mediation and/or settlement privileges and the provisions of California Evidence Code to the extent necessary to enforce the terms of this Agreement. 1 . 1 The recitals are incorporated herein as though set forth in full. 1 .2 CITY agrees to pay to TCM the amount of $229,769.04 ("Settlement Amount") in consideration for the releases set forth herein. 1 .3 Payment of the Settlement Amount will be made .on-d- 2099? ^ 1.4 TCM agrees that, upon payment of good and sufficient funds as set forth in Paragraph 1 .2, it shall cause its Complaint to be dismissed, with prejudice, in its entirety. ' Stnlenxni Agt (TCM tn) CiiliMd) DOC ARTICLE II 2.1 Releases « (a) Except for the obligations arising under this Agreement, and subject to the express exclusions set forth hereinbelow, the Parties, and each of them, for themselves, and as applicable, their respective assigns, predecessors, successors-in-interest, officers, directors, shareholders, employees, trustees, partners, principals, agents, subcontractors, parents, subsidiaries and representatives, hereby release, acquit and forever discharge each other, and as applicable, each other's respective agents, officers, directors, shareholders, employees, successors, assigns, partners, trustees, administrators, attorneys, insurers, sureties, representatives, and all other persons or entities acting by, through, under, or in concert with them, from every and all things, by reason of any matters or causes of things whatsoever, whether known or unknown, suspected or unsuspected, heretofore or now existing, or which might or may be claimed to exist in the past, present or future, including but not limited to all past, present or future actions, causes of action, liabilities, claims, disputes, debts, controversies, indebtedness, breaches of contract, breaches of duty, acts, promises, agreements, representations, damages and any demands of any type, nature, kind or description, whether tortious, contractual, statutory or otherwise and whether in law or in equity or otherwise, with respect to, or arising out of, the Project, the Claim, the Contract, the Complaint, and the Parties' respective performance thereunder. Said releases shall be effective upon payment of the amount set forth in paragraph 1.2 of this Agreement. (b) The Parties, in giving the releases provided for herein, represent, acknowledge and agree that Section 1542 of the California Civil Code provides as follows: A general release does not extend to claims which the creditor does not knew or suspect to exist in his or her favor at the time of execution of the release, which if known by him or her must have materially affected his or her settlement with the debtor. The Parties specifically waive any and all rights and/or benefits they have or may have under California Civil Code §1542 or any other statutes or common law principle of similar substance and effect, and further represent, acknowledge and agree that their knowing and voluntary waiver of the provision of.California Civil Code § 1542 is an essential and material term of this Agreement, and that without such a waiver, this Agreement would not have been entered into. (c) Subject to the limitations, reservations and exceptions specifically set forth in this Agreement the Parties, and each of them, acknowledge that they are aware that they or their attorneys may hereafter discover facts different from or in addition to the facts which they now know or believe to be true with respect to the subject matter of this Agreement, but that it is their intention hereby to, and they hereby do, fully, finally, absolutely, and forever settle and, except for the obligations imposed by this Agreement, release, waive and acquit the other from the claims released herein and, in furtherance of such intention, the general releases herein given by said Parties shall be and remain in effect as full and complete general releases notwithstanding the discovery of any different or additional facts. Stttlcnxnl Agt (TCM ind Cadsbod) DOC ARTICLE III Each of the Parties to this Agreement represent, warrant and agree as follows: 4 (a) That there has been no assignment, sale, transfer or hypothecation, by operation of law or otherwise, of any claim, right, cause of action, demand, obligation, liability or interest released or assigned by any of them as provided herein and each party has full authority and ability to settle, resolve and dismiss its respective claims with respect to the Project. (b) Each Party to this Agreement has made such investigation of the facts pertaining to this settlement and this Agreement and of all the matters pertaining to it as it deems necessary. (c) Each Party or responsible officer or agent thereof has read this Agreement and understands the contents thereof. Each of the individuals executing this Agreement on behalf of the respective Party possesses the power, capacity and authority to do so and thereby bind his respective Party. (d) Each term of this Agreement is contractual and not merely a recital. (e) All Parties acknowledge that in entering into this Agreement, each of them is relying solely on the terms of this Agreement and the advice of its own attorneys and other advisors. All Parties acknowledge, further, that none of them is relying on any written or oral statement, representation or warranty made by any other Party, or the representative of any other Party, except as set forth in this Agreement. Except with respect to the representations and warranties made in this Agreement, each Party, in entering into this Agreement, assumes the risk that any fact upon which he relied in entering into this Agreement may prove to be false, or that his understanding of the facts or the law was incorrect. After the execution of this Agreement, no Party shall be entitled to rescind this Agreement, or obtain any other relief whatsoever, based upon his discovery of the falsity of any fact, other than the representations and/or warranties made in this Agreement by any other Party, upon which he relied in entering into this Agreement. (f) This Agreement is binding upon and shall inure to the benefit of each of the Parties hereto and their respective parent companies, subsidiaries, affiliates, joint venturers, principals, successors, divisions, heirs, and assigns. (g) The Parties hereto agree to execute, acknowledge, and/or deliver any and all documents and to perform any and all acts reasonably necessary to carry out and perform their obligations hereunder. (h) This Agreement contains the entire agreement and understanding between the Parties and supersedes and replaces all prior negotiations and proposed agreements, written or oral, concerning the Claim. The Parties hereto acknowledge that no other Party, or agent or attorney of any other Party, has made any promise, representation, or warranty whatsoever, express or implied, not contained in this Agreement concerning the subject matter hereof, to Aji CICM >nd Culitwi) DOC induce this Agreement, and the Parties acknowledge that they have not executed this Agreement in reliance upon an)' such promise, representation, or warranty not contained herein. (i) This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which taken together shall constitute a single instrument. If this Agreement is signed in counterpart, it shall be deemed effective upon execution by all Parties. The Parties agree that a fully executed copy or facsimile of this Agreement shall have the same force and effect as an original document. (j) This Agreement is deemed to be executed and delivered within the State of California, and its validity, construction and performance, as well as the rights and obligations of the Parties hereunder, shall be governed, construed and enforced in accordance with the laws of the State of California. (k) Any litigation or other proceeding brought to enforce the provisions of this Agreement shall be filed in a court of competent jurisdiction in San Diego County, California. (1) The Parties agree and acknowledge that this Agreement reflects a compromise and settlement of claims, disputes and differences between them which are denied and contested. The Parties agree that neither this Agreement nor the payment of any monetary consideration nor the giving of any other consideration, as provided herein, shall be construed as an admission by any Party hereto of any liability of any kind to the other. (m) Each Party to this Agreement shall bear its own attorneys' fees, costs and expenses incurred in all proceedings associated with the Project, the Claim or any related matter. (n) Every provision of this Agreement is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a tribunal of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. IN WITNESS WHEREOF, each of the Parties hereto has executed this Agreement as of the date set forth next to their signature. DATED: December Q, 2009 TELACU Construction Management, Inc. Sftlltmtnl Agl (TCM and Cailsbjil} DOC DATED: December^, 2009 CITY OF CARLSBAD By: Its: C'lTY MANAGER APPROVED AS TO FORM; DATED: December £), 2009 CITY OF CARLSBAD, CITY ATTORNEY OFFICE Ronald C, Kemp Deputy City Attorney DATED: December j 2009 RIPPETOE & MILES LLP Lattra A. Mile jregory. Rippetoe, Esq. forTELACU Construction fogement, Inc. Setlkrotnl Ajl fTCM Ki Cjrlibxi) DOC