HomeMy WebLinkAboutContracts & Agreements_17-92_CCv0001.pdf 611.0/92
DAN,
BEST, BEST & KRIEGER
CAN YOU PLEASE SUPPLY ME WITH A COPY A POF THE AGREEMENT THAT IS TO BE FILED
ARTNERSi-IIP IPIGI UDING PROFESSIONAL CORPORATIONS
LAWYERS WITH THIS MAP.
THANKS, BEA
ARTHUR L.LITTLEWORTH' DOUGLAS S.PHILLIPS' MATT H.MORRIS ELAINE E.HILL 444 MISSION SQUARE
GLEN E.STEPHENS' ANTONIA GRAPHOS JEFFREY V.DUNN KEVIN K.RANDOLPH 3754 UNIVERSITY AVENUE
WILLIAM R.D.WOLFE' GREGORY K.WILKINSON STEVEN C,D.BAUN JAMES 8,GILPIN POST OFFICE BOX 1428
BARTON C.GAUT' WYNNE S.FURTH BRANT H.DVEIRIN MARSHALL S.RUDOLPH
PAUL T,SELZER' DAVID L.BARON ERIC L.GARNER KIM A.BYRENS RIVERSIDE,CALIFORNIA 92542
DALLAS HOLMES' EUGENE TANAKA DENNIS M.COTA CYNTHIA M.GERMANO TELEPHONE(714)6$6-1454
CHRISTOPHER L,CARPENTER' BASIL T.CHAPMAN JULIE HAYWARD BIGGS MARY E,GILSYRAP
RICHARD T.ANDERSON' TIMOTHY M.CONNOR RACHELLE J.NICOLLE NGUYEN D.PHAN TELECOPIERS
JOHN D.WAHLIN' VICTOR L.WOLF ROBERT W,HARGREAVES DANIEL C.PARKER,JR. (714}686-30836$2-4612
MICHAEL D.HARRIS' DANIEL E.OLIVIER JANICE L.WEIS GINEVRA C.MARUM
W.CURT EALY' DANIEL J.McHUGH CHRISTIAN E.HEARN PAUL G,GIBSON
THOMAS S.SLOVAK' HOWARD B.GOLDS SHARYL WALKER CHARLES E.KOLLER
JOHN E.BROWN' STEPHEN P.DEITSCH PATRICK W.PEARCE GLENN P.SABINE OF COUNSEL
MICHAEL T.RIDDELL* MARC E.EMPEY KIRK W.SMITH CHRISTINE L.RICHARDSON JAMES B.CORISON
MEREDITH A,JURY' JOHN R.ROTTSCHAEFER JASON D.DABAREINER JOANE GARCIA-COLSON
MICHAEL GRANT' MARTIN A.MUELLER KYLE A.SNOW PHILIP J.KOEHLER RICHARD A.OSHI NS'
FRANCIS J.BAUM' J.MICHAEL SUMMEROUR MARK A,EASTER DIANE C.WIESE RONALD T.VERA
ANNE T,THOMAS' VICTORIA N.KING DIANE L.FINLEY STEVEN S.KAUFHOLD -ADWFTED IN NEW YORK,NEVADA,
O.MARTIN NETH ERY' JEFFERY J.CRANDALL MICHELLE OUELLETTE REBECCA MARES GURNEY wrAstiINOTON,D.C.COURT OF C--
GEORGE M.REYES SCOTT C.SMITH PETER M.BARMACK ALLISON C.HARGRAVE
WILLIAM W.FLOYD,JR, JACK B.CLARKS,JR. DAVID P.PHIPPEN,SR. DOROTHY L ANDERSON
MICHAEL A.CRISTE' JEANNETTE A.PETERSON KENNETH R.WEISS G.HENRY WELLES
GREGORY L.HARDKE BRIAN M.LEWIS J.CRAIG JOHNSON DANIEL L.PEARSON OFFICES IN
KENDALL H.M..VEY BRADLEY E.NEUFELD SUSAN C.NAUSS PALM SPRINGS{619}325-7264
CLARK H,ALSOP' KANDY LEE ALLEN CHRISTOPHER DODSON RAYMOND BEST(1868-1957)
DAVID J,ERWIN* ELISE K-TRAYNUM MARK R.HOWE JAMES EL KRIEGER(1913-1975) RANCHO MIRAGE(619)565-2611
MICHAEL J.ANDELSON' WILLIAM D.DAHLING,JR, BERNIE L.WILLIAMSON EUGENE BEST(1893-1981) ONTARIO(714)989-8584
'A PROFESSIONAL CORPORATION
May 22 , 1992
p�Y
t5�
James D. Wheaton ( . 11,14G�
City Manager
City of Redlands
30 Cajon Street—
Redlands, California 92373
Re: City of Redlands adv. Western Heights Water Company
Dear Jim:
Back on April 7, 1992 , Dan McHugh sent you the original signed
settlement agreement executed by the Western Heights Water Company,
Mr. Danielson and the City. A map incorporated into the agreement
which depicts the Western Heights service was not furnished in
final form along with the agreement. We finally received the map
a few days ago and it is now enclosed for your records.
For your information, we are informed that Mr. Danielson has
now paid his $10, 000 to Western Heights and has also assigned over
the required stock. Therefore, this matter should be dismissed
shortly.
Very truly yours,
Howard B. Golds
of BEST, BEST & KRIEGER
HBG/tag
Enclosure
DJM112476
SETTLEMENT OF WESTERN HEIGHTS WATER COMPANY
V. CITY OF REDLANDS ("CITY") , SAN BERNARDINO SUPERIOR
COURT CASE NO. 260976 (THE "ACTION") AND MUTUAL GENERAL
RELEASE OF RELATED CLAIMS ("THIS AGREEMENT") .
This Agreement is made among the parties this _2nd day f
April ___._1992.
RECITALS
A. Disputes and a lawsuit have arisen between Company,
City, and Walter G. Danielson Trust, owner of Tract 12382
( "Owner" ) , with respect to which entity should serve water to
Tracts 12777, 12382 and certain other areas within Company' s
service area. Among other things, Company alleges City has
encroached onto Tracts 12777 and 12382 which are included in
Company's service area, and that, under the theory of inverse
condemnation, Company is entitled to compensation from City for
Company's resulting damages and losses, including attorneys fees.
City has agreed to provide domestic water service to Tracts 12777
and 12382 and City denies that it is precluded from providing such
water service and further denies that Company is entitled to any
recovery against City with respect to the alleged encroachments
within Tracts 12777 and 12382 Of Company' s service area. Owner
denies that it is obligated, in any way, to obtain water service
from Company.
B. The parties hereto, through their respective
counsel, and in order to avoid further litigation have negotiated
a settlement of disputed claims, as follows:
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AGREEMENT
1. For and in consideration of the Commitments made and
the consideration given, as set forth herein, the parties hereto do
hereby completely release and forever discharge each other and each
other' s officers, agents, attorneys, employees, successors, and
assigns from all claims, rights, demands, actions, obligations,
liabilities, and causes of action of any and every kind, nature and
character whatsoever, known or unknown, whether based on a tort
including but not limited to negligent or intentional tort,
contract (implied, oral or written) or any other theory of
recovery, including, but not limited to inverse condemnation, and
whether for compensatory, special or exemplary damages, which they
may have, or either of them now has, have ever had, or may in the
future have, arising from, or in any way connected with Tracts
12777 and 12382. This release is limited to the claims arising out
of, or. rej1Aajtjing_ to Cit ' s Present or - anti cipat94--Al leged
encroachment into Tracts 1,2777 and 12382.
2. City shall not serve water to any area within
Company' s service area (as delineated in Exhibit "A" attached
hereto) where Company is presently providing water service.
3. City intends and has agreed to and shall provide
domestic water and sewer services to Tracts 12777 and 12382.
Company agrees that City may provide domestic water and sewer
services to Tracts 12777 and 12382, the same as if said Tracts were
not within Company's service area.
4. Except as to Tracts 12777, 12382 or as otherwise
noted hereinbelow, City agrees not to interfere, in any way, with
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water service by Company in its said service area, whether or not
Company is presently serving water in all of the areas within
Company's service area.
S. City also shall not serve water to any area within
Company's service area where Company is not presently providing
water service, unless a Court of competent jurisdiction first
adjudges that the area to be served by the City is not within
Company's service area, or the Company voluntarily modifies the
boundaries of its service area.
6. City shall not condition any project approval upon
the owner/developer or anyone else challenging Company's rights to
serve water to the project and City shall not state to anyone, in
substance, that such person should challenge the validity or
enforceability of any of the Company' s annexation agreements and/or
Company's service area. Further, Company reserves its right to
bring an action for inducing breach of contract should the factual
requisites for such cause of action occur.
7. Within ten ( 10) days of the execution of this
Agreement, Owner will pay to Company the sum of Ten Thousand
Dollars ($10,000-00 ) and Owner will also deliver/transfer to the
Company forty-seven ( 47 ) of Owner' s seventy-seven (77) shares of
Company' s stock.
8. Should City provide sewer service in an area where
Company provides water service, Company, at the request of City,
will bill the users within such service area both for water and
sewer service ( "water/sewer service" ) , and, in the event any user
fails to pay the water/sewer service bill, Company will, upon
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City' s specific demand therefor and/or the Company's rules,
discontinue water service to such user until such time as the
user' s water/sewer service account is paid in full and brought
current.
9. In return therefor, City agrees to reimburse
Company, in full, for all costs reasonably incurred by Company in
billing for sewer service.
10. In the event any user referred to in paragraph 8
above should initiate litigation against the Company or any of its
officers, agents, attorneys, employees, successors and assigns as
a result of the discontinuance of water service, for nonpayment of
sewer service or for any other reason relating to sewer service,
City shall retain counsel and defend such litigation on behalf of
Company, and City agrees to indemnify Company fully for all costs
and expenses incurred in such litigation, as follows:
a. City agrees to indemnify Company from any and
all liability, losses, or damages Company may suffer as a result of
actions, claims, demands, costs, or judgments against Company
arising out of the discontinuance of water service for nonpayment
of sewer service obligations, as aforesaid. The -indemnity herein
provided will extend through the period wherein the City and
Company implement and perform the provisions described in paragraph
8 above.
b. Should it become necessary for purposes of
resisting, adjusting, or compromising any claims or demands arising
out of the subject matter with respect to which indemnification is
provided by this Agreement, or for purposes of enforcing this
-4-
indemnity Agreement, for Company to incur any expenses of any kind,
or become obligated to pay any attorneys ' fees or court costs, City
agrees to reimburse Company for such expenses, attorneys' fees or
costs within a reasonable time, in no event to exceed 30 days after
receiving written notice from Company of the incurring of such
expenses, attorneys ' fees, and/or costs.
C. Should Company be required to enforce this
indemnity Agreement against City through litigation, City shall pay
Company interest at an annual rate of twelve percent ( 12%) ,
compounded quarterly, on all expenses or costs reasonably incurred
by Company and of any sums Company may pay as a result of claims,
demands, costs, or judgments with respect to the subject matter of
this indemnity Agreement, from the date such sums are actually paid
by Company.
11. With respect to Tracts 12777 and 12382, City,
Company, and Owner, and each of them, hereby waive any claim or
action, of any and every kind, nature, or character whatsoever,
known or unknown, which they may now have, have ever had, or may in
the future have, with respect to any matter pertaining to, or
arising from the parties conduct and agreements with respect to
Tracts 12777 and 12382. In addition, each party hereto hereby
waives any and all rights or benefits which it may have under the
terms of Section 1542 of the California Civil Code which provides
as follows:
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
-5-
him must have materially affected his settlement with the
debtor.
12. The parties agree that each party shall be
responsible for the payment of its own court costs, including
attorneys , fees, and all other expenses in connection with the
matters referred to in this Agreement.
13. It is understood and agreed that this is a full and
final release covering all unknown and unanticipated injuries,
debts, claims, or damages to City, Company or Owner which may have
arisen or may arise, in connection with Tracts 12777 or 12382, as
well as those injuries, debts, claims, or damages now known or
disclosed which may have arisen, or may arise, from anything
arising out of their respective dealings with respect to Tracts
12777 and 12382.
14. All of the parties represent that they have read
this Agreement, and that they are, and each of them is, fully aware
of its contents and of its legal effect.
15. It is understood and agreed that this is a
compromise settlement of disputed claims, or potential disputed
claims, and that the furnishing of the consideration for this
Agreement shall not be deemed or construed as an admission of
liability or responsibility at any time for any purpose. It is
further agreed and understood that this Agreement is being entered
into solely for the Purpose of avoiding further expense and
inconvenience from defending against any and all claims, rights,
-demands, actions, obligations, liabilities, and causes of action
referred to hereinabove. The liability for any and all claims
-6-
referred to herein is expressly denied.
16. This Agreement incorporates the entire understanding
among the parties, and recites the sole consideration for the
promises exchanged herein. In reaching this agreement, no party
has relied upon any representation or promise except those
expressly set forth herein.
17. Each party hereto has participated in the drafting
of this Agreement, and accordingly, none of its provisions are to
be interpreted against any party hereto.
18. Company shall cause to be recorded in the Official
Records of San Bernardino County a copy of this Agreement and all
exhibits thereto, for the purpose of placing future purchasers of
property within Company's service area on notice of the agreements
made, and the rights created herein, so far as they relate to
property subsequently acquired in Company' s service area.
19. In the event any party signing this Agreement or any
amendment or addendum to this Agreement, or any successor of such
party, fails to perform, or breaches any provision or provisions
thereof, any signing party injured thereby may bring an appropriate
action or proceeding, and the prevailing party or parties shall be
entitled to recover from the non-prevailing party or parties their
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full costs of suit, including attorney' s fees.
CITY.-OF-:5;REDLANDS
M— 17
�,_By:-'CharleD,-,'� �--' 3.rjyn
Mayor, Cif Redlands
WESTERN/,HEIGHTS
� WATER COMPANY
&.04 l)-Fi�� -1
Dr. Robert J," /ZAApia, President
Colv
WALTER G. DANIELSON TRUST
By: Walter G. Danielson
�J,
By: Beyl M. Danielson
Owner of Tract 12382
APPROVED AS TO FORM AND
RECOMMENDED FOR SIGNING
BEST, BEST & KRIEGER
Howard Golds, Esq.
Attorneys for Defendant,
TY OF REDLANDS
BR NIC AL R L RS Y
Donald R. A a z, Esq.
Attorneys for Plaintiff
WESTERN HEIGHTS WATER MPANY
RUTAN U KEJO
Phil Kuhn i Eq-*
.Attorney tor
WALTER G. DANIELSON TRUST
STATE OF CALIFORNIA
cc ss.
COUNTY OF / Q S L4 ��'�
On this -7 day of `J in the year 19
before me, the undersigned, a Notary Public in and for said State, personally appeared
fay ms i. T�2 G- - �Y�K�Y'��, �T✓ t!4 N�
personally known to me
[07 '4=L (or proved to me on the basis of satisfactory evidence) to be the person.Swhose names
LOS ANGELES 0-10 W Comm.Exp.May 13.194d subscribed to the within instrument,and acknowledged to me that i.he
executed it.
WITNESS my hand and official seal.
Notary Public in and for said State.
ACKNOWLEDGMENT—Generai—WoI=M Form 233CA—Rev.5-82
( 71982 WOLCOTTS INC (orae class E-2)
r
SETTLEMENT OF WESTERN HEIGHTS WATER COMPANY V. CITY OF REDLANDS,
SAN BERNARDINO SUPPERIOR COURT CASE NO. 260976 AND MUTUAL GENERAL
RELEASE OF RELATED CLAIMS
CITY OF REDLANDS
By: Charles/ D x--D-�r ,-- ayor
City of ked ands, Ca L. ornia
fjr
STATE OF CALIFORNIA }
} SS
COUNTY OF SAN BERNARDINO }
On this lath day of August in the year
X992 , before me, the undersigned Notary Public, personally
appeared Charles G. DeMirjyn, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person who
executed the within instrument as Mayor of the City of Redlands
and acknowledged to me that the City of Redlands executed the
within instument.
seal. IN WITNESS WHEREOF, I have hereunto set my hand and official
fl RIE�S Nataryublic i d for said
PO
EAL
` NoWy� +rhe County nd Stat '
p My commission expires 6/3/93
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q
City Cl k
15
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BEST, BEST & KRIEGER V00 co
A PARTNER91410 INCLUCNNG PFIEFrSS4oL CoRpopATKW$
LAWYERS
C "
ARTHUR L,UrTLEWORTH- DOUGLAS S.PHILLIPS' MATT H.MORRIS KEVIN K.RANDOLPH 400 MISSION SQUARE
GLEN E.STEPHENS- ANTONIA GRAPHOS JEFFREY V.OUNN JAMES B.GILPIN
WILLIAM R,D*WOLFE' GREGORY K.WILKINSON STEVEN C.O.BAUN 3750 UNIVERSITY AVENUE
BARTON G.GAUT'. MARSHALL S.RUDOLPH
WYNNE S.FURTH BRANT H.DVEIRW KIM A.BYRENS POST OFFICE BOX 1028
PAUL T.SELZER' DAVID L.BARON ERIC L.GARNER CYNTHIA M,GERMANO RIVERSIOE,CALIFORNIA 92502
DALLAS HOLMES' EUGENE TANAKA DENNIS M.COTA MARY E.GILSTRAP
CHRISTOPHER L.CARPENTER' BASIL T-CHAPMAN JULIE HAYWARD BIGGS TELEPHONE(714)686-1450
RICHARD T.ANDERSON' NGUYEN O.PHAN
JOHN J. DANIEL O.WAHLIN- VICTOR L.WOLF ROBERT W.HARGREAVES GINEVRA C.MARUM TELECOPIERS
MICHAEL D.HARRIS' DANIEL E.OLIVIER JANICE L.
WEIS CHARLES E.KOLLER (714)686-3083 - 682-4612
W.
CURT EALY* DANIEL J.McHUGH CHRISTIANR E.HERRN GLENN P.SABINE
THOMAS S.SLOVAK' HOWARD S.GOLDS SHARYL WALKER CHRISTINE L.RICHARDSON
JOHN E.BROWN' STEPHEN P.DEITSCH PATRICK W.PEARCE JOANE GARCIA-COLSON
MICHAEL T.RIDDELL' MARC E.EMPEY KIRK W.SMITH PHILIP COUNSEL
MEREDITH A.JURY' PHILIP J�KOEHLER
JOHN R�ROTTSCHAEFER JASON D.DA8AREINER DIANE C.WIESE JAMES B.CORISON
MICHAEL GRANT- MARTIN A.MUELLER KYLE A.SNOW STEVEN S.KAUFHOLD RICHARD A,OSHINS*
FRANCIS J.
BAUM- J.MICHAEL SUMMEROUR MARK A,EASTER REBECCA MARES OURNEY
ANNE T.THOMAS' VICTORIA N.
KING DIANE L.FINLEY ALLISON C.HARGRAVE RONALD T.VERA
G MARTIN NETHERY' JEFFERY J.CRANDALL MICHELLE OUELLETTE DOROTHY L ANDERSON -ADM—ED I NEW 1%)RK,NEVADA,
GEORGE M.
REYES SCOTT C.SMITH PETER M.BARMACK G.HENRY WELLES COURT OF c—
WILLIAM w,FLOYD.JR. JACK B.CLARKE,JR. DAVID P.PHIPPEN.SR. DANIEL L.PEARSON
MICHAEL A.CRISTE- JEANNETTE A.PETERSON KENNETH R.WEISS JAMES R.HARPER
GREGORY L.HAROKE BRIAN M.LEWIS J.CRAIG JOHNSON DINA HARRIS
KENDALL H.M*CVEY BRADLEY E.NEUFELD SUSAN C.NAUSS OFFICES IN
CLARK H.ALSOP- KANDY LEE ALLEN CHRISTOPHER DODSON RAYMOND BEST(1868-1957) PALM SPRINGS(619)325-7264
DAVID J.ERwIN. ELISE K.TRAYNUM BERNIE L.WILLIAMSON JAMES H.KRIEGER(1913-1975) RANCHO MIRAGE(619)568-2611
MICHAEL J.ANDELSON* WILLIAM O.DARLING,JR. ELAINE E.HILL EUGENE BEST(1893-1981) ONTARIO(714)989-8584
A PROFESSIONAL C0RP0AATK)t4
August 21, 1992
Leland P. McElhaney, Esq.
Brunick, Alvarez & Battersby
1839 Commercenter West
P. O. Box 6425
San Bernardino, CA 92412
Re: Western Heiahts Water Company v. City of Redlands
San Bernardino Superior Court Case No. 260976
Dear Lee:
In accordance with your request, we have obtained the
Mayor of Redlands ' signature on the enclosed agreement and have had
it notarized by the City Clerk. The trustees of the Walter G.
Danielson Trust have also signed off on the agreement and their
signatures have likewise been notarized. Our understanding 4s �.
.. L4-1,a�-
. 4-
you are now going to record the agreement in the County Recorder's
Office. Would you please send a copy of the first page of the
agreement to us once it has been recorded? Thanks for your help.
Very truly yours,
Daniel J. McHugh
of Best, Best & Krieger
City Attorneys for the
DJM/des City of Redlands
Encl.
DJM127039