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HomeMy WebLinkAbout1968-12-18; Municipal Water District; Resolution 233I 5j 6 7 8 9 10 11 12 13 r 14 15 16 17 1s 19 20 21 i I RESOLUTION NO. 233 ' WHEREAS, CARLSBAD MUNICIPAL WATER DISTRICT' I 3 i is a plaintiff in one or more lawsuits instituted by it under federal antitrust laws, which lawsuits are commonly described %. as the West Coast Pipe Cases; and 4 I 2 I WHEREAS, it has entered into an agreement, knoim- as Western Associated Pipe Plaintiffs Organization, with other public agencies who are also plaintiffs in the same litigation, which agreement provides for the equitable sharing of costd'of litigation and recoveries made as a result of litigation or compromise thereof; and I 'i WHEREAS, such agreement provides for the reteztion of special legal counsel and the agreement has been inplenented. 1 1 I =i I by the employment of the law firm of FERGUSON b. BURDELL of f Seattle, Washington; and i 1 WHEREAS, said special counsel and the defendant, American Pipe & Construction Co., of Monterey Park, California, have reached agreement on the terms of a settlement and conpro- 1 I 'i , r' 1, RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT APPROVING SETTLEMENT OF PIPE CASES I 1 $2 ' I 1 D 23 24 PREAMSJJE : are more fully set out in the attached document entitled MEMORANDUM OF. UNDERSTANDING FOR SETTLEMENT OF WEST COAST PIPE t I : f '4 I mise which will satisfactorily terminate this. litigation, as 22 // WHEREAS, the terms embodied in the b!SXO&\NDU:b; OF I c t: 5 1 2 6 '1 .7 8 9 10 > <r 4 11 12 13 I 14 c- 15 16 17 1s 19 20 21 22 23 24 i--- 25 26 27 28 agency and he recommends acceptance thereof as being in the best interests of this agency; and WHEREAS , such memorandum of understandin h for the paymer,t to this agency of a pro rata share of thh settlement amount of Eight Million, Five Hundred ThouSand Dklla i - :I ($8,500,000.00) and interest over a period of seven (7) years; :c B :E .< NOW THEREFORE, BE IT RESOLVED THAT: L The MEMORANDUM OF UNDERSTANDING FOR SETTLEMENT i 1' 1. i 12 OF WEST COAST PIPE CASES BETWEEN ALL PLAINTIFFS AND AMER~CAN PIPE & CONSTRUCTION CO. , a copy of which is hereto attached ' as Exhibit I, is hereby adopted, ratified and confirmed. r I -9" ,. il 2. The President of thSsp *. agency is hereby authorized to sign the release of claim ag&nst the defendant, attached hereto as Exhibit 11, as the official act of this agency. t 3. The law firm of Ferguson & Burdell, special .. counsel retained by Western Associated Pipe' Plaintiffs Owganiza- tion, is hereby authorized by this agency to enter into a stipulation dismissing this litigation with prejudice and i without costs in the form and manner as provided in Exhibit 1114 i i; hereto attached. .)* !&. Pi Adopted. this 18th day of , 1968. i! 'i Attest: 5 Anount to be Paid: American agrees to pay to the fiscal agent desigcated by yr '6 7 8 9 - 10 11 12 .. 13 r - 14 15 16 17 ' -18 is 20 21 22 23 24 c 25 26 27 28 r 29 SO 31 32 Y Parties: dolla-rs ($7,284,803) payzbia to the order of said fisca at i:- address in installments 8s shown on Exhibit "A'' intezzst.at che rate 02 fiva percent (5%) per annus oil C?is dcclinkg balances of szid mtc?, said interest to bc pc?yc=bie'~t EXHIBIT I ,. p. 1 of 5 j: 7 ,. . , .. 7 9 10 11 I 12 1'' I. 3.3 ! 25 8. . il !, 17 19 23 82 ' 29 I ZG I 52 ! \. . I . ,.' . .. .-- u,.de.;. is not ?&id ES it beco::les dze, it shall be added to :?lie principal ai;d bezr a like rate o? interest. Said note shall fixther provlde that if any payment of either principal or interest is not mde as it bccomes due, the entire balance of sald<tlote renalning unpzid shzll becoxe and be Immediately due and payable. Said note shzll also reservs to American the right to make.pay- meats on account of principzi or interest in advance or' their Szid note shall fuzchez provide tha~ if sny iilter&t: i t rl dde date without penalty. Said note shall further provide that in sthe event an action is co;=z?lenced to collect said note I or any part thereof, there shall be addkd to the judgrr.er;t f any priixlpal or icterest found by the court to be d-ce sucaf addltionzti sun by way or' attozneys' 2ees as to the court hau 1. jurisdiction of szLd cause shdl se29' reesonabie, sald s~f.Dmey&l sztisfsc:ory to counsel for IiV.33. i I: 'b c- 1 1 2 s 4 5 6 7 8 9 10 I1 12 1s 3.4 15 16 17 2.8 19 20 2i 22 23 24 25 C" 60 27 22 29 SG e. 9 3, 52 I CLzy ad CourLty of Szn Fi'mcisco, and all !: ai3 .L~ -' challenges in thz Ii'esteri~ Tip Cases. Ot&r Axericai an5 its attorneys agree to execute i covmant c fora satisfactory to IJAT20 covenanting that Axsriczn ar,d i attorxys shall not further attack in ainy manner the valid' of 1&4?PO and the selection of special couniel by the State California. Each plaintizf that is a sLgnaCory to WAPPO shall rele t its claim against American, and special comsel for WA320 1 I f sbll stipulate to dismissal with prejudice and without c&ts of its cction against American. < ProZective Order: KO person attending the meeting between counsel on SovemSer ! 20 aid 21, 1968 concerning the sabject matter of t$is nenorzrrdum 1 -02 understanding shall divulge the nature thereof nor of arry 05 the subjects discussed therezt to any person whos2 res?onsibilities or duties to one or more oz' the parties herein .: da not require that*he be consulted coacerning or ififo-ned of I szid discussions In order for one or more of said pzrties to tzke zction with respect to zzy or" the subjects dlsctlssed on szid dates, and no officer, ern?loy.ee or zgent of.zny of the F ? 'I 2 6 7 9 10 11 .- 13 .. .. . r " 13 16 3.7 - 18 20 22 23 ,- -. d3 ,r . I- concluded on Nove i( . client or clients, it being uilderstood that ratification by such clients is necessary. In consideration of the paymeat of the settlement anaunt set forth in this memorzndux of understanding, plaintiffs skall deliver to American duly executed releases and stipulat to dismiss as &ove provided, together with duly adopted andl ccrrizicd resolutions or equivalent documents ratifying and confirming this settlerent. I ! American agrees to furnish WA?i?O with certified copks of 1 the resolutioa board of directors, and ceztlfied co2ies of the resolution of of American Pipe ad Construction COZ~XY'S .1 . 'I Pipe Linings, Inc. (the latter concerniq, the City of San Diego lit-igatioa) autkorizicg kaerlficm's om'ficexs ad zttorrreys to die this settlenent. 1 Tke docix?ents reZerrsd to jazll be in such form 2s shall be zgrsed to between WATT0 and he-rican. Execztion of Ehis Xzmora-$zD: $ r-r; -- L.~.-s meinorandm of ur?dersta-=lding may be executed 53 my J -..rb2z iru .A of counterparts with like effect as if all signatures were ail the original. Dk.TZ3: Fovekber 21, 1958. r J~xary 1, 1970 505,800 .4?rLl 1, 1370 5G5,83G July 1, 1970 505,800 Jmiiary 1, 1971 472,300 July I, 1971 472,300 Jaxca-fy 1, 1972 472,303 July 1, 1972 472,300 c Sanuzry 1, 1973 Aily 1, 1973 January 1, 1974 July 1, i974 Jarazry 1, 1975. , Toea1 472,309 472 , 300 -472,300 472,300 471,600 $8,503,039 EXHIBIT I . p. 5 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 ,- 14 15 ' 16 17 1s 19 21 22 23 24 .. - 25 26 27 28 t 0 d c - RELEASE OF AMERICAN PIPE & CONSTRUCTION CO. 1. This release is executed in favor of and for the benefit of American Pipe ti Construction Co., a California corporation, together with its subsidiary and affiliated.com- ,I panies and the present and former officers, directors, employees and agents of American Pipe ti Construction Co. and its gub- 'I . .\ sidiary and affiliated companies, including successors by,yr,erger .I the heirs, representatives, executors, administrators, &goes- $ sors and assigns thereof (hereinafter designated as "Ame@can") . , +' ' .$*. * 7. 2. I' - 4. < 2.. This release is executed by CARLSBAD .' MUNICIPAL WATER DISTRICT I. .. ' c hereinafter designated as "Releasor." 3. This release concerns and relates to the .. \. 1 *.t following products and services manufactured or supplied by ., American:. concrete or steel pipe or any other products or services associated with the construction of pipelines and other installations-utilizing concrete or steel pipe, including by way of illustration only and without limiting the generality of the foregoing; the lining or coating pf new pipe, the rehabilitation of-used pipe, both in' place and elsewhere, pipe lining materials such as "Amerplate," either separately or as a constituent part of pipe manufactured by American or' ., others, and "specials" such as manhole pipe and fittings manu- factured, sold-by or supplied by American (hereinafter desig- nated "pipe products"). page 1, Release d 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 2s 4. The period of time covered by this release is prior to January 1, 1969, but includes nevertheless any transactions between American and Releasor either direckly or indirectly which transactions are still pending as of January 1, 1969. 5. For and in consideration of the sum of One I. ?. Dollar ($1.00) and other valuable consideration.paid by f American to Releasor, the receipt of which is hereby ackhow- ledged, Releasor hereby forever releases, discharges and '&quits .. e. American of and from each, every and all claims, controversies, actions, causes of action, obligations or liabilities of any nature whatsoever, now or hereafter known, suspected or claimed, which Releasor or any of its agents ever had, now has or here- after can, shall or may have or allege against American based upon allegations -of conspiracy, collusion, monopoly or attempted monopoly, which might be asserted under the Clayton -. Act (15 USC, SS15 and 26), or under any other state or federal antitrust trade regulation or similar law giving rights to relief under the same or similar circumstances; and in connectio with the foregoing only, Releasor expressly waives the provision of Section 1542 of the Civil Code of the State of California, reading : "1542. (Certain Claims Not Affected by Generil Release.) A.genera1 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 hav.e materially affected his settlement with.the :debtor." page 2, Release ,. . 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 . e&.'.* "' .w ." UNITED STATES DISTRICT COURT WESTESN DISTRICT OF WASHIKGTON , SOUTZERN DIVISION DISTIiICT OF OREGON NORTHERN DISTRICT OF CALIFORNIA CENTIWL DISTRICT OF CALIFORXIA SOUTHERN DISTRICT OF STATE OF WASHINGTON, et al. V. ANERICAN PIPE AND CONSTRUCTION CO., et al. STATE OF OREGON, et al. ANERICAN PIPE AND CONSTRUCTION CO., et al. V. TiIE STATE: OF CALIFORNIA, et al. MIERICAN PI?E AND CONSTRUCTION CO., et al. V. THE, CITY OF LOS AXGELES, et al. M!ZRiCAN PIPE -AXD COWSTRUCTION CO., et al. V; CITY OF SAN DIEGO, et al. V. Ai4ZEICAN PIPE AXD CONSTRUCTION CO., et al. , Title of Pleading: STIPULATION CALI FORN I A C.A. NO. 3157, W.D. bdh. , S. Div. C.A. No. 65-266 and related pipe case in the D. 0: Ore. bearing.C.23. No. 65-299 .. C.A. No.'43403 and related pipe cases 'in the X.D. of Calif. bearing C.A. Nos. and- 45001 43406-43407, 43752-43754, C.A. No. 65-911 an6 relzted pipe cases in the C.D. cf Calif. bearin9 C.A. Nos. 66-658, and 66-1024 65-913, 65-914, 66-655, 66-65 C.A. No. 3396 and relate; pipe cases in the S.D. of Calif. bearing C.A. Xos. 3525. and 3528 ALL NAMZD ACTIONS ! I I I ! 1 1 1 *t 1 2 3 4 ^I 5 6 7 8 9 10 11 12 13 --- 14 15 16 17 18 19 20 21 22 23 14 .. 25 !G It is hereby stipulated by and between thc above- named plaintiffs, actins through their special counsel, Ferguson & Burdell, and the defendant American Pipe and Con- struction Co. , acting through its counsel, that the actions above named may be dismissed with predudice as to the defendant American Pipe and Construction Co., each party shall bear its own cost. DATED : C FERGUSON & BURDELL By : Attorneys for WAPPO plaintiffs George N. Jansen Jmes 0. Sullivan Wayne M. Pitluck Paul B. Wells PROCOi?IO, CORY, HARGXEAVES AND SAViTCIl By : Attorneys for defendant; American Pipe and Construction co. ORDER Upon 'hearing in open*court, and there being .good cause shown, IT IS HEREBY ORDERED that the Jbove designated actiofis ETC hereby disxissed' with p?rejud.i ce as to the de5enZ.ant Axcrican Pipe and Construction Co., each party to beax- its own cost . DAT'ilD : I 1 2 3 - 4 5 6 7 8 9 10 . 11 12 13 14 Is 16 17 18 19 20 21 22 23 24 25 26 27 28 *. c I. ." *.. ./ 7. Releasor warrants that the persons execu.ti$g this document on behalf of Releasor are fully authorized so to do and Releasor makes such warranty in full knowledge that Releasee has no independent knowledge of the authority or lack ' thereof of such persons but is relying upon Releasor's warranty. 8. Any claim, action or controversy concerning this release shall be determined under the laws of the St+& of California. ': I IN WITNESS WHEREOF, Releasor has caused this' ' , 1968 . release to be executed this - 18th day of December CARLSBAD MUNICIPAL WATER DISTRICT (Full name of Releasor) Off ice Pre L ident Attesting Witness page 3, Release Off ice Secretary .. .. . "4