HomeMy WebLinkAboutRes1998-011
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Sponsored by: Gifford
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A SETTLEMENT AGREEMENT WITH TIM
MCDONALD AND LEO WAKEFIELD
WHEREAS, Tim McDonald and Leo Wakefield filed an action in superior court against the
City of Seward, then-mayor Louis Bencardino, and then-city manager Ron Garzini, alleging, among
other things, a violation of plaintiffs' first amendment rights and challenging the legality of actions
taken by the City respecting the sale of the sawmill site pursuant to City Resolution 97-032;
WHEREAS, the superior court ruled in favor of the City respecting claims relating to the
sawmill site transaction which decision was appealed by plaintiffs to the Alaska Supreme Court;
WHEREAS, the claims respecting alleged first amendment violations remained subject to
trial in superior court and oral argument has been scheduled regarding the supreme court appeal;
WHEREAS, the City of Seward and plaintiffs acknowledge that each has expended
significant resources regarding ongoing litigation; and
WHEREAS, based upon negotiation and assessment of the matter, the parties have agreed
to settle all claims and disputes arising between them concerning the facts and issues raised in the
litigation entitled McDonald. Wakefield v. City of Seward et al., 3KN-97-568 Civil and McDonald.
Wakefield Appellants v. City of Seward et at Appellees, Case No. S-8326;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The settlement agreement between Tim McDonald and Leo Wakefield as
complainants and the City of Seward, Ron Garzini and Louis Bencardino, attached and incorporated
herein by reference, is hereby approved.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th
day of February, 1998.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-011
~ CITY OF SEWARD, AL~~KA
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Lowell R. Satin, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Callahan, Clark, King, Orr, Satin
Gage
None
None
ATTEST:
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Pitrick Reilly /
City r.~~.H~:"".
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SETTLEMENT AGREEMENT
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The parties to this agreement are complainants TIM MCDONALD and LEO
WAKEFIELD (collectively "Complainants") and the City of Seward, a municipal
corporation; RON GARZINI, individually and as City Manager; LOUIS BENCARDINO,
individually and as City Mayor (collectively the "City"), and with the advice of counsel
for each of Complainants and City. This agreement is entered into for good and
valuable consideration as recited herein and is effective upon the date that this
agreement is approved by the Council of the City of Seward.
I.
PURPOSE OF SETTLEMENT
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A. All parties to this settlement agreement desire to end and resolve litigation and
controversy by and among each of them and to end and resolve litigation and
controversy respecting the matters described or alleged by the parties hereto. It is
intended that, to the extent that interpretation of the terms of this settlement
agreement is necessary, such interpretation shall be based upon the presumption
that all matters asserted or in controversy prior to the date of execution of this
agreement have been definitively resolved without additional recourse among the
parties except as might be necessary to enforce the terms of this agreement.
B. The parties to this settlement agreement intend to fully and definitively settle
all matters raised or which could have been raised in litigation entitled Tim McDonald.
Leo Wakefield v. City of Seward; Ron Garzini individuallv and as City Manaqer; Louis
Bencardino. individuallv and as City Mavor, Case No. 3KN-97-568 Civil and that
appeal styled Tim McDonald. Leo Wakefield. Appellants v. City of Seward: Ron
Garzini individuallv and as Citv Manaqer; Louis Bencardino. individuallv and as Citv
Mavor. Appellees, Case No. S-8326 (collectively the "Litigation").
C. All parties understand and specifically agree that execution of this agreement
and resolution of the Litigation do not constitute any admission of wrongdoing,
misconduct, or liability on the part of any other party. All parties understand and
recognize that each side denies any wrongdoing, misconduct, or liability and are
agreeing to the terms of this agreement solely to terminate current Litigation or
disputes, and the possibility of any further or future litigation. The parties to the
Litigation desire to save the cost and uncertainties of continuing the Litigation or
disputes by settling these claims at the present time.
II.
CONSIDERATION
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A. The parties will by . 1998, dismiss and withdraw the Litigation as
filed in superior court and in supreme court, and the form of such dismissal and
withdrawal shall be "with prejudice," with each party to bear its own costs and
attorneys' fees, in a form substantially as attached hereto.
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B. The City shall waive and discharge its right and entitlement to collect
attorneys' fees in the Litigation, as entered by order of the superior court on October
6, 1997, and shall cause to be filed in court a satisfaction of judgment. To the extent
such attorneys' fees have been collected from Complainants by writ of execution,
said funds shall be expeditiously returned to Complainants.
C. Upon execution of valid dismissal documents as described in paragraph II-A
above, the City shall pay to Complainants the sum of $10,000.
D. Following withdrawal and dismissal of the Litigation, the Mayor will make a
statement at the earliest valid opportunity at a Council meeting in substantially the
form attached. The same statement will be submitted by the Mayor as a letter to the
editor by the Mayor to the Seward Phoenix Loq.
E. The City will not oppose and Complainants shall be entitled to recover any
bonds posted in the Litigation
III.
UNDERTAKINGS OF THE PARTIES
A. The parties will promptly undertake to execute, file, record, obtain court
approval, or otherwise take such steps as are necessary to effectuate the t.erms of
this settlement agreement, and the parties hereto recognize that time is of the
essence in accomplishing the steps contemplated hereunder.
B. This agreement shall be governed by and construed in accordance with the
laws of the State of Alaska. Venue for enforcement of this settlement agreement
shall lie in the Kenai Superior Court, Third Judicial District, Alaska.
IV.
UNDERSTANDINGS OF THE PARTIES
A. For and in consideration of the payment and actions described herein, the
execution of the settlement agreement, and other good and valuable considerations,
the parties to this agreement, and their heirs, executors, administrators, and assigns,
hereby release, acquit, and forever discharge all other parties to this agreement who
might be legally liable for any damages or injuries described in the Litigation or as
may have been described in the Litigation, or with respect to any other thing or claim
whatsoever on account cif or in any way arising out of allegations, directly or
inferentially, which were raised or could have been raised in the Litigation.
B. The parties further specifically agree that no action, process, or challenges of
any kind shall be brought by any of them against any of the other parties or the
Settlement Agreement
ALL01DB9/4337.4109
Page 2
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project at issue in the Litigation, directly or by and through any other party concerning
or arising out of the claims described in this agreement or any allegations in the
Litigation, and warrant that they know of no such claims.
C. All the terms and conditions of the settlement agreement have been reflected
upon without haste. No party is under any disadvantage, and no promise or
inducement which is not herein expressed has been made to any party. Each party
specifically warrants and represents that he or it has been duly advised by counsel
and has had the opportunity to consult with counsel in a timely fashion with each and
every person or entity with whom that party desired to consult.
D. All parties have been informed of or are aware of the holding in the case of
Witt v. Watkins, 579 P.2d 1065 (Alaska 1978), and are familiar with the significance
of the supreme court decision in that case. Nevertheless, the protection, if any, of
the holding therein, is hereby expressly waived. Each party hereby acknowledges,
understands, and assumes all risks, chances, or hazards that any damages may
substantially be higher than the settlement amount, may be greater in degree than
presently described or understood, and may be different in kind or character; and
each party understands and acknowledges the existence of that risk and nevertheless
accepts the above-mentioned payment and gives this release.
E. The parties have been informed or are aware of the holding in the case of
Younq v. State, 455 P.2d 889 (Alaska 1969), and are familiar with the significance
of the supreme court decision in that case. It is the parties' intent and desire herein
to release all individuals, firms, corporations, or entities, including the plaintiffs and
defendants, against whom they might possibly make claim, demand, or suit as a
result of the damages referred to in this agreement and/or which allegedly occurred
with regard to the allegations in the Litigation. This is so even though they may not
be able to name or identify those persons, firms, corporations, or other entities
against whom they might consider a claim, demand, or suit.
F. This settlement agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof, and supersedes any and all prior
and contemporaneous contracts, agreements, promises, representations, warranties,
inducements, covenants, or duties, oral or written, conditional or unconditional,
expressed or unexpressed which in any way arise out of or result from the subject
matter of this settlement agreement and the Litigation.
G. Each of the parties to this release and settlement agreement acknowledges
that he or it has had the benefit of the advice and representation of competent
independent legal counsel in negotiating, entering into, and executing this agreement.
It is further agreed that the fact that this agreement may have been drafted in whole
or in part by one such party's counsel shall not cause all or'. any part of this
Settlement Agreement
ALL01DB9/~337 .4109
Page 3
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agreement to be construed against such party. The parties agree that this
agreement is the joint product of the parties and their respective counsel, and that
there is no drafter against whom ambiguities are to be resolved in the event of a
dispute.
H. The City warrants that it is authorized to sign this agreement on behalf of
individual defendants Garzini and Bencardino and that said defendants are bound by
this agreement.
COMPLAINANTS:
DATED: 2- - f- C;p
Bya:..)M~
Tim McDonald
DATED: 2-~- 9r
BY~~'~~
Leo Wakefield
CITY OF SEWARD,
Ron Garzini, individually and
as [former] City Manager,
Louis Bencardino, individually
and as [former] City Mayor
DATED: 11/1/9S
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APPROVED AS TO FORM:
~\)_\LL/'--
,aenni. A. Wheeler
Attorney for Comp . ants
~/CJ
Robert M. Johnson
Attorney for City
(including City of Seward,
Garzini and Bencardino)
Settlement Agreement
ALL01DB9I4337,4109
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