HomeMy WebLinkAboutContracts & Agreements_52-2010_CCv0001.pdf SETTLEMENT AGREEMENT
This settlement agreement (this "Agreement") is made this 201h day of April, 2010,
("Effective Date"), by and between Dr. Shahrokh Shabahang, an individual ("Dr. Shabahang"),
and the City of Redlands, a municipal corporation (the "City"). Dr. Shabahang and the City are
sometimes individually referred to herein as a"Party"and, together, as the "Parties."
RECITALS
A. The City filed a First Amended Complaint for Breach of Lease, Quantum Meruit,
and Trespass ("Complaint") in San Bernardino Superior Court, designated as San Bernardino
Superior Court Case No. CIVDS 911696 (the"Lawsuit").
B. Dr. Shabahang is a defendant in the Lawsuit.
C. The First Amended Complaint alleges that Dr. Shabahang failed to pay rent to the
City for aircraft stored in a City-Owned hanger at the Redlands Municipal Airport.
D. Dr. Shabahang and the City desire by this Agreement to resolve the litigation
between them that is subject of the Lawsuit.
In consideration of the mutual promises contained herein, Dr. Shahrokh Shabahang and
the City of Redlands agree as follows:
AGREEMENT
I. Dr. Shabahang shall pay the City the sum of Eleven Thousand Seven Hundred
Dollars ($11,700) (the "Payment") in three (3) equal installments in the amount of Three
Thousand Nine Hundred ($3,900) each. The first installment shall be due and payable within ten
(10) days of the Effective Date of this Agreement, the second installment due and payable by
May 15, 2010, and the third installment due and payable by June 15, 2010. Except for the
Payment, each Party shall bear its own attorneys' fees and costs incurred in connection with the
Lawsuit and the preparation of this Agreement. Upon City's receipt of the full amount of the
Payment, City shall file a dismissal of Dr. Shabahang, as an individual and in his capacity as a
director and shareholder of Blackhawk Alliance, Inc. from the Lawsuit, with prejudice, in the
San Bernardino Superior Court.
2. Except as set forth in this Agreement, Dr. Shabahang releases the City, its elected
officials, officers, employees, agents and attorneys from any and all claims, demands, liabilities,
obligations, costs, expenses, fees, actions, and/or causes of action arising out of. or connected to,
the Lawsuit, whether known, unknown or suspected, and Dr. Shabahang hereby waives the
provisions of Civil Code section 1542. Civil Code section 1542 reads as follows: "a general
release does not extend to claims which the creditor does not know or suspect to exist in his or
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her favor at the time of executing the release, which if known by him or her must have
potentially affected his or her settlement with the debtor."
3. Except as set forth in this Agreement, the City releases Dr. Shabahang from any
and all claims, demands, liabilities, obligations, costs, expenses, fees, actions, and/or causes of
action arising out of, or connected to, the Lawsuit, whether known, unknown or suspected and
the City hereby waives the provisions of Civil Code section 1542. Civil Code section 1542 reads
as follows: "a general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or
her must have potentially affected his or her settlement with the debtor."
4. The Parties shall each act in good faith and shall take all. further actions
reasonably necessary to effectuate the letter and the spirit of this Agreement.
5. This Agreement and all rights and obligations arising out of it shall be construed
in accordance with the laws of the State of California.
6. Any litigation arising out of this Agreement shall be conducted only in the San
Bernardino County Superior Court San Bernardino District.
7. This Agreement contains the entire agreement and understanding between the
Parties concerning the Lawsuit, and supersedes and replaces all prior negotiations or proposed
agreements, written or oral. Each of the Parties acknowledges that no other person, nor the
agents nor the attorneys for any Party, has made any promise, representation or warranty
whatsoever, express or implied, not contained herein, to induce the execution of this Agreement
and acknowledges that this Agreement has not been executed in reliance upon any promise,
representation or warranty not contained herein.
8. This Agreement may not be amended except in a writing signed by the Parties.
9. The Parties hereby acknowledge that they have undertaken an independent
investigation of the facts concerning the Lawsuit. The Parties expressly assume the risk that the
true facts concerning the foregoing may differ from those currently understood by them.
10. Each individual signing this Agreement represents and warrants that he or she has
been authorized to do so by proper action of the Party on whose behalf he or she has signed.
11. This Agreement may be signed in one or more counterparts and, when the Parties
have signed the original or a counterpart, such counterparts, whether originals, facsimiles or e-
mail attachments, together shall constitute one original document.
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April 2010 DR. SHAHROKH SHABAHANG
By:
April 6,2010 CITY OF REDLANDS
By:
Pat Gilbreath,Mayor
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