HomeMy WebLinkAboutAxford, Eric; 2023-05-22;DocuSign Envelope ID: 527F201F-C232-4ED9-9A7F-A3396618479F
SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS
This Settlement Agreement and Release of ALL Claims (hereafter referenced as the
"Agreement") is entered into by Plaintiff Eric Axford (hereinafter "Plaintiff') and Defendant
City of Carlsbad (hereinafter the "City"). All of the above-referenced individuals and/or entities
may be collectively referenced as the "Parties."
RECITALS
I. Plaintiff has asserted claims and causes of action against the City in relation to a July 17,
2021 , bicycle incident, and further alleged personal injuries as a result, in the lawsuit entitled
Eric Axford v. City of Carlsbad, et al. in the Superior Court for the County of San Diego, Case
Number 37-2022-00007115-CU-PO-NC (hereafter referred to as the "Lawsuit"). The City denies
liability for the claims/causes of action asserted by Plaintiff in the Lawsuit, and further disputes
the nature and extent of damages alleged by Plaintiff regarding the incident underlying the
Lawsuit.
2. The Parties have reached a final resolution and settlement of any and all actual and/or
potential claims and causes of action by Plaintiff against the City. This Agreement is entered into
for the purposes of Plaintiff resolving and releasing all claims and causes of actions asserted, and
all those that could have or may be asserted against the City, its employees, agents or
representatives, including, but not limited to dismissing the Lawsuit as against the City and Does
with prejudice.
AGREEMENT AND RELEASE
1. PAYMENT AND DISMISSAL
Plaintiff agrees to dismiss the Lawsuit in its entirety with prejudice, and to settle and
release any and all known, unknown, anticipated and unanticipated claims and damages arising
out of, in any way connect to, or resulting from Plaintiffs alleged damages in any way connected
to the allegations of Lawsuit as against the City in exchange for the total sum of Ten Thousand
Dollars ($10,000.00), each party to bear their own attorneys' fees and costs (the "Settlement
Amount"). Plaintiff agrees that any obligation to tender the Settlement Amount is expressly
conditioned upon the releases and terms made herein, as well as Plaintiffs execution of this
Agreement. Plaintiff further agrees to be solely responsible for the allocation of settlement funds
between counsel and Plaintiff, and further acknowledges the City's obligation with respect to
funding is solely to provide the sum total of $10,000.00, per the terms herein.
The Parties in good faith agree that all sums set forth herein constitute damages on
account of physical injuries or sickness, within the meaning of Section I 04(a)(2) of the Internal
Revenue Code of 1986, as amended. However, Plaintiff acknowledges and agrees that the
ultimate determination of this characterization is beyond the control of the Parties and, therefore,
Plaintiff agrees to be solely and exclusively responsible for the tax consequences of the
Settlement Amount, if any, and to further indemnify and hold the City, its employees, agents and
representatives, harmless for any and every claim, right, demand or cause of action arising from
any governmental or taxing authority relating to the Settlement Amount.
Page 1 of 5
DocuSign Envelope ID: 527F201F-C232-4ED9-9A7F-A3396618479F
Not later than seven (7) days after tender of the Settlement Amount, counsel for Plaintiff
shall provide the City with a fully executed Request for Dismissal of the entire Lawsuit with
prejudice and, in so providing, Plaintiff expressly authorizes the City to file such document and
effect the dismissal of the Lawsuit, in its entirety, with prejudice.
2. MANNER OF PAYMENT
Within thirty (30) days of (I) receipt of this Agreement executed by Plaintiff, and (2)
receipt of a valid 2023 W-9 for each payee of the Settlement Amount, the Settlement Amount
shall be tendered for payment. The City will send counsel for Plaintiff the Settlement Amount
made payable to "The Draitser Firm, APC Client Trust Account". Payment of the total
Settlement Amount shall exhaust and forever discharge the C ity's obligations to tender payment
to Plaintiff, and/or any of Plaintiff's representatives, for any and all matters addressed by this
Agreement and/or the Lawsuit.
With respect to the payment of the Settlement Amount, and as previous ly referenced,
Plaintiff is responsible for the payment of any and all amounts governmental or tax authorities
may claim are due, if any, out of the Settlement Amount. Plaintiff acknowledges that the City is
relying on, among other things, this specific provision in entering into this Settlement
Agreement, in paying the Settlement Amount, and that this Settlement Agreement is not
contingent upon any particular tax characterization or treatment of the Settlement Amount.
3. RELEASE
In consideration of the forego ing payment, Plaintiff hereby forever, irrevocably and
unconditionally releases and discharges the City, its current and former council members,
supervisors, officers, directors, employees, affiliates, contractors, predecessors, administrators,
successors, assigns, insurers, reinsurers, ri sk pools, and all other persons, firms, corporations,
attorneys and representatives, and all persons acting by, through or in concert with them (all of
whom are collectively referred herein to as "Released Parties") from any and all cla ims, causes
of action, complaints, charges, demands, liabilities, losses, costs, lien, or expenses of any kind
whatsoever (including attorney's fees and costs), known or unknown, suspected or unsuspected,
that Plaintiff may now have or has ever had against the City and Released Parties by reason of
any act, omission, transaction or event occurring up to and including the date all Parties execute
this Agreement (the "Released Claims").
Plaintiff expressly agrees that a ll rights he may have under section 1542 of the Civil Code
of the State of California are hereby waived, and Plaintiff acknowledges and understands that
this Agreement has been executed with the express intent of extinguishing all obligations
described herein and as provided in Section 1542 of the California Civil Code. Section 1542
provides as fol lows:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH AND THAT IF KNOWN BY HIM
Page 2 of 5
DocuSign Envelope ID: 527F201F-C232-4ED9-9A7F-A3396618479F
OR HER, MUST WOULD HAVE MATERIALLY AFFECTED ms OR
HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY."
The Released Claims including, without limitation, any and all attorney's fees and costs
related thereto, are forever barred by this Agreement and without regard to whether those claims
are based on any alleged breach of a duty arising in a statute (both California and federal),
contract (whether express, oral or implied) or tort; any alleged unlawful act, including without
limitation any violation of state or federal law, statute or regulation; any other claim or cause of
action; and regardless of the forum in which it might be brought.
4. REPRESENTATION AND WARRANTIES
In further consideration for the above-mentioned value and consideration provided by the
City, and in settlement of the above-referenced claims and disputes, Plaintiff and the City
represent and warrant as follows:
All Parties represent and warrant that they are (or their agent or representative is) a
competent and a legal adult in excess of 18 years of age with the legal capacity to understand and
to enter into this Agreement.
All Parties represent and warrant that they (or their agent or representative) have not
previously assigned, transferred, granted or purported to assign, transfer or grant any of the
claims, rights, demands or causes of action, whether known or unknown, anticipated or
unanticipated, disposed of by this Settlement Agreement. All Parties thereby represent and
warrant that they maintain complete authority to enter into this agreement and to forever dismiss
and discharge the claims, rights, demands and causes of action, whether known or unknown,
anticipated or unanticipated, arising out of, in any way connected to, or resulting from Plaintiffs
allegations in the Lawsuit.
5. FEE AND COST W AIYER
As referenced herein, the Parties to this Agreement agree to bear their own attorney's fees
and costs for prosecution and/or defense of the subject matter and any other expenses for all
matters related to or arising from the matter.
6. SATISFACTION OF LIENS
Plaintiff will indemnify and hold the City and Released Parties, their attorneys and their
insurance companies and risk pools, harmless from any and all past, present or future claims,
demands, or liability for liens (workers compensation, medical or otherwise), Medi-Cal (State of
California Benefits), Medicare or other governmental health coverage providers/insurers'
conditional payments and rights to repayment, whether known or unknown. To the extent any
further governmental healthcare/statutory lien, or private lien of any nature (including expert
liens or attorney liens), is asserted against the recovery in this matter, Plaintiff agrees to be solely
responsible for the discharge of such obligation and will fully satisfy and resolve such matters
out of the Settlement Amount, without further contribution or payment of any kind by, or on
behalf of, the City. Additionally, to the extent any attorney fee/cost liens or liens associated with
Page 3 of 5
DocuSign Envelope ID: 527F201F-C232-4ED9-9A7F-A3396618479F
any expert-related work commissioned on behalf of (or for the benefit of) Plaintiff for the
lawsuit, Plaintiff further agrees to satisfy and discharge such liens out of the Settlement Amount
and agree to indemnify and hold the City and Released Parties harmless from any such liens.
In recognizing this is a resolution of a disputed matter, the Parties further recognize the
potential limiting implications posed by Government Code section 985(b), in light of the City's
status as a public entity and the col lateral source payments already tendered for Plaintiffs
medical care in this matter. In reaching the resolution outlined in this Agreement, the Parties
have had an opportunity to consult counsel of their own choosing and reach this resolution with
specific consideration of the potential impact of Government Code section 985(b).
7. NO FURTHER CLAIMS
Plaintiff expressly agrees that neither he nor her heirs, assigns, executors, administrators,
agents, employees, affili ates, managers, owners, or successors, will continue and/or institute any
legal or administrative proceedings against the City or Released Parties before any court,
administrative agency, arbitrator, or any other tribunal whatsoever, by reason of any claim,
liability or cause of action, whether known or unknown, being released herein.
Plaintiff represents and warrants that he has not presented, and shall not present, any
claim for benefits to any employer or insurance entity under the Workers Compensation system.
Plaintiff represents and warrants that if such claim is later presented against the commitments
outlined herein, he shall indemnify and hold the City and all Released Parties harmless
(including attorneys' fees and costs) from and against any liens, rights, demands or subrogation
efforts that such employer or insuring entity may later assert or be entitled to recover.
8. INTEGRATION AND INTERPRETATION
This Agreement is the result of negotiation between the Parties and is the fully integrated
and final expression of the settlement described herein and supersedes any and all previous
written or oral communications. This Agreement may not be altered, changed, or amended
without a subsequent written document signed by al I of the Parties.
9. SEVERABILITY
ln the event that any one provision or portion of this Agreement is later determined by a
court of competent jurisdiction to be void or voidable, the Parties agree that any such language or
provisions shall be severable, and that any such provisions so severed shall not affect the validity
of the remainder of the Agreement subsequent to such severance.
10. ENFORCEABILITY
The Parties agree that the Court will retain jurisdiction to enforce this Agreement
pursuant to CCP §664.6. The Parties agree that if either party seeks to enforce this Agreement, it
may be done on an ex parte application.
Page 4 of 5
DocuSign Envelope ID: 527F201F-C232-4ED9-9A7F-A3396618479F
11. COMPLETE AGREEMENT
No party has made any statement, representation, or promise other than as set forth
herein. Any representation, warranty, promise, or condition, whether written or oral, not
specifically incorporated herein, shall not be binding upon any of the Parties and Plaintiff
acknowledges that in entering into this Agreement he has not relied upon any representations,
promises, or conditions not specifically set forth herein.
12. COUNTERPARTS
This Agreement may be executed in counterparts, and, when all executed signatures
pages are taken together, shall constitute a complete Agreement. An electronic signature has the
same force and effect as an original signature.
Dated: 5/5/2023
Dated: 511.2.j,02,3
Eric Axford
~~~
Name: Clvt.i\.;.e. \t.. t---\c Mtt ~ tJ vi
Title: C,...,h.3 A tt O V n.e.::,
City of Carlsbad
Page 5 of 5