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SETTLEMENT AND RELEASE AGREEMENT
This Settlement and Release Agreement (hereinafter "Agreement") is entered into by and
between Plaintiff the City of Redlands(the"City")and Defendant Robert Ward,an individual doing
business as The Equity Exchange ("Defendant") for purposes of a comprehensive settlement and
release of all claims arising from the facts set forth in San Bernardino Superior Court Case No.
SCVSS 94761 entitled City of Redlands v. Robert JVard, an individual dba The Equity Exchange;
Big Star Properties, a California corporation;Joy S. Thompson, an individual,- Kumar Industries,
LLC, a Xevada corporation dba Kumar Industries LLC; and Does I through 30 (hereinafter the
"Action"). The previously noted parties are sometimes referred to herein as the "Parties," This
settlement is intended by the Parties to be a comprehensive and complete release of claims, and is
not intended to be an admission of liability by any party.
RECITALS
A. Between April of 1998 and January 2001, the City entered into various utility
contracts with the Defendant,the terms of which required the City to provide Defendant with water,
sewer,and trash collection services. The Defendant was required under the contracts to pay for such
services.
B. The Defendant breached these contracts by failing to pay the City for the services
pursuant to the contracts.
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C. Subsequently, on or about September 19, 2002, the City filed the Action against
I
Defendant for breach of written contract, open book account, account stated,and reasonable value
of services. The allegations of the complaint filed in the Action are incorporated herein by reference
for the purpose of explaining the claims made by the City against Defendant.
D. The Defendant failed to timely respond to the complaint.
E. On March 28,2003, the Court entered Judgment against the Defendant and in favor
of the City in the amount of$42,521.99.
F. It is the intention of the Parties to fully and finally resolve and settle their disputes
and to discharge all claims,demands,causes of action,obligations,damages,and liabilities each of
the Parties may have against the other that arise from or are related to the Action in accord with the
terms set forth below:
AGREEMENT OF PARTIES
NOW, THERE-FORE, in consideration of the mutual covenants and conditions contained
herein, the Parties agree as follows:
1. The Parties acknowledge that the recitals are true and correct and incorporate by
reference those recitals into this Agreement.
S-ACRAMENTGEOP,6400 Page 2 o 7
2. Defendant shall pay the City the sum of$37,163.62. Such sum shall be due and
payable on or before the day the Parties have executed this Agreement. The payment of such sum
shall be complete upon the presentation of a valid check made payable to the City in the amount of
$37,163.62.
3. Upon execution of this Agreement and upon receipt of the check described in
paragraph 3 above,the City,through its attorneys of record, shall execute and file a Satisfaction of
Judgment with the Court within ten days pursuant to Code of Civil Procedure section 724.030.
4. The Parties shall bear their own attorneys' fees and costs incurred in connection with
the Action and drafting and execution of this Agreement.
5. Defendant on behalf of himself, his agents, representatives, partners, directors,
officers, trustees, attorneys, employees, servants, affiliates, predecessors, successors and assigns,
both past and present,and any person or entity acting by,through, under or in concert with each of
them, do hereby release, and forever discharge the City and each of its, agents, representatives',
partners, attorneys,employees, elected and non-elected officials, successors and assigns,both past
and present, and any person or entity acting by,through, under or in concert with each of them, or
any of them,of and from any and all manner of action or actions, cause or causes of action, in law
or equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims, demands,
obligations, rights, breaches of contract, breaches of duty of any relationship, acts, omissions,
misfeasance, malfeasance, sums of money, compensation, accounts, contracts, controversies,
SACRAMENTMEOP6400 Page 3 of 7
promises,losses,damages,costs,attorneys' fees,expenses of any type,kind,nature,description,or
character whatsoever,whether known or unknown,claimed or suspected,existing or contingent,and
irrespective of how,why or by reason of what facts,or which the Defendant now has,ever had,ever
claimed to have had,or that hereafter could,might or may be claimed against City arising out of the
Action.
6. Defendant expressly waives the rights afforded under Civil Code section 1542 which
provides that:
A GENERAL 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 HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.
Defendant represents and warrants that he has had the opportunity to receive the advice of an
attorney with respect to the advisability of making the release provided for herein,and the meaning
of California Civil Code section 1542, and knowingly waives his rights under this statute, as well
as any similar rights vested with these parties under theories of law or equity.
7. Defendant acknowledges that he may hereinafter discover facts different from,or in
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addition to, those which he now knows to be true with respect to the subject matter of this
Agreement, and agrees that this Agreement shall be and remain effective in all respects
notwithstanding such different or additional facts or the discovery thereof.
8. The Parties to this Agreement represent and warrant to each other that they have not
transferred, assigned or hypothecated, or purported to transfer, assign or hypothecate, any of the
claims being released hereunder.
9. The Parties to this Agreement acknowledge that in entering into this Agreement they
have not relied upon any statement of any other party or any Parties' attorneys,and should any party
be mistaken in the Parties' belief with regard to some issue of fact or law regarding the matters
herein,this Agreement shall nonetheless remain in full force and effect and be binding as to each and
all of the parties.
10. The language in all parts of this Agreement shall be construed as a whole according
to its fair meaning and not strictly for or against any party hereto.
11. This Agreement shall be binding upon and inure to the benefit of each party and
Parties' respective successors, heirs and assigns.
12. This Release may be executed in one or more counterparts, (including via original
or electronic facsimile or telecopier transmission, which shall be conclusively deemed an original
SACRAMENTOT-30A6400 Page 5 of 7
signature or signatures)each of which shall be deemed an original but all of which shall constitute
one and the same instrument.
13. If any party hereto brings an action or other proceeding to interpret or enforce any of
the terms of this Agreement, or arising out of a breach of this Agreement,then the prevailing party
shall be entitled to recover costs and expenses,including reasonable attorneys'fees,in such amounts
as may be determined by the Court, having jurisdiction thereof, in addition to any other relief
awarded.
14. This Agreement constitutes the entire agreement and understanding among the Parties
concerning the subject matter of the Agreement, and supercedes all prior and contemporaneous
agreements, statements, understandings, terms, conditions, negotiations, representations and
warranties, whether oral or written, made by any of the parties or their attorneys concerning the
matters covered by this Agreement.
15. Should any portion or clause of this Agreement be found to be invalid,illegal,void,
voidable,or unenforceable for any reason whatsoever,this Agreement shall be read as if it did not
contain said portion or clause. The parties intend for such invalid portion or clause to be severable
from the remainder. Any clause or portion in its severance shall not affect the validity or affect the
remaining provisions of this Agreement.
16. Each of the Parties to this Agreement has had the opportunity to obtain the advice of
SACRNMENTOTOY,6400 Page 6 of 7
legal counsel of their choice with respect to this Agreement.
17. This Agreement shall be governed by and construed in accordance with the laws of
the State of California.
18. All individuals signing below on behalf of any entity or individual hereby represent
and warrant that they have full authority to execute this Agreement on behalf of the entities for which
they have signed.
IN WITNESS WHEREFORE,the Parties hereto have executed or caused this Agreement to
be executed by their duly authorized representatives.
CITY OF REDLANDS
Dated: May 20 2003. By:
Karl N. Haws, Mayor
ATTEST:
By:
Beatrice Sanchez, Deputy City Clerk
Dated: 100Robert Ward. an individual dba The Equity
Exchange
By:
Robert Ward
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Received 05-13-03 06:09pm From-Preferred Customer To-BB&K Page 002
BEST BEST & KRIEGER LLP
A CALIFORNIA LIMITEO LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
RIVERSIDE LAWYERS ONTARIO
(909) 686-1450 400 CAPITOL MALL, SUITE 1650 (909)989-8584
SACRAMENTO, CALIFORNIA 958 1 4 SAN DIEGO
INDIAN WELLS (9 16) 325-4000 (6I 3} 525-1300
(760) 568-261 1 (9 1 6) .325-401 0 FAX
BBKLAW.COM ORANGE COUNTY
(71 4? 939-5940
KEVIN T. COLLINS
KTCOLLINS@BBKLAW.COM
FILE No, 1 7942.00050
May 15, 2003
VIA FACSIMILE
AND OVERNIGHT
Daniel J. McHugh,
City Attorney
City of Redlands
PO Box 3005
Redlands, CA 92373
Re: City of Redlands v. Robert Ward, et al., Case No. SCVSS94761
Dear Dan:
Pursuant to your prior approval, we have reached a settlement agreement in the above-
entitled action with Mr. Bob Ward, the individual who had the highest outstanding balance in the
amount of$37,163.62. Attached is a copy of the agreement signed by Mr. Ward. As you are aware,
Mr. Ward has already paid the City the$37.163.62 by delivering a check to the City's Utility office
on May 7, 2003. In addition to this settlement. Mr. Ward previously made two payments in this
matter totaling $15,647.60.
Once the settlement and release agreement is approved and signed by the City,we will file
a satisfaction of judgment with the Court. Please notify our office upon approval and signature so
that we may take care of the filing in a timely manner.
If you have any questions or concerns, please do not hesitate to call.
Sincerely,
1`11"Kevin T. Collins
for BEST BEST& KRIEGER LLP
KTCjch
Enclosures
cc: Howard B. Golds
SACK AMENT(YUCH,6468