HomeMy WebLinkAboutContracts & Agreements_85-2023TTLENIENTAGREEMENT '& GENERAL RELEASE
This Settlement Agreement and General Release (the "Agreement") is entered into as of
the date of the last signature below ("Effective Date") by and between Plaintiffs Laurel
Falconieri and Leslie Martinez ("Plaintiffs") and Defendant City of Redlands ("Defendant").
The signatories to this Agreement shall individually be referred to herein as "Party" and
collectively be referred to herein as the "Parties."
RECITALS
A. On or about April 29, 2021, Plaintiffs filed a Complaint with the Superior Court
of the County of San Bernardino against Defendant titled LAUREL FALCONIERI and LESLIE
MARTINEZ vs. CITY OF REDLANDS, and DOES 1 through 25, inclusive, Case No.
CIVSB2114106 (the `Lawsuit"), raising multiple causes of action alleging employment
discrimination and harassment against the City of Redlands;
B. On or about July 2, 2021, Defendant filed an Answer to Plaintiffs' Complaint.
Therein, Defendant denied generally and specifically each and every allegation of the Complaint,
denied it is liable to Plaintiffs in any amount, and denied that Plaintiffs have sustained damages
by reason of any act or omission of Defendant;
C. On or about December 19, 2022, Plaintiffs filed in the Court of Appeal, Fourth
Appellate District, Division Two, a Petition for Writ of Mandate appealing an October 19, 2022
order in the Lawsuit ("Appeal").
D. The Parties, on behalf of themselves and their current and former employees,
agents, officers, Defendant's council members, representatives, assigns, successors -in -interest,
heirs, counsels, and insurers now desire to resolve and settle all claims, counter -claims, and
disputes arising from or involving Plaintiffs' employment with Defendant and any claims arising
therefrom, as well as the Lawsuit;
E. The Parties agree and mutually acknowledge that this Agreement is for settlement
purposes only. Defendant has denied and continues to deny any wrongdoing in connection with
Plaintiffs' employment with Defendant and any claims arising therefrom, as well as the Lawsuit.
Neither this Agreement nor any action taken pursuant to this Agreement shall constitute an
admission of any wrongdoing, fault, violation of law, or liability of any kind on the part of the
Parties, or any admission by any of the Parties of any claim or allegations made in any claim
against such Party. This Agreement is entered into, in substantial part, to avoid the fees and
expenses associated with litigation. Moreover, Defendant may be reimbursed for a portion of the
Settlement Amount defined herein pursuant to any applicable insurance or risk pool coverage.
The Parties agree that this Agreement shall be inadmissible as evidence of liability or damages in
any forum or proceeding.
17942.00156\41323410.1
AGREEMENT
Page 1 of 8
1. The Parties acknowledge that the recitals stated above are true and correct and
incorporate by reference those recitals into this Agreement.
2. In consideration of this Agreement and the promises set forth herein, Defendant
shall pay Plaintiff Laurel Falconieri and/or cause Plaintiff Laurel Falconieri to be paid the
total sum of One Million One Hundred Fifty Thousand Dollars ($1,150,000), and shall
pay Plaintiff Leslie Martinez and/or cause Plaintiff Leslie Martinez to be paid the total
sum of Five Hundred Fifty Thousand Dollars ($550,000). Payment of the sum total of
amounts due to Plaintiffs Falconieri and Martinez, a combined total of One Million Seven
Hundred Thousand Dollars ($1,700,000) ("Settlement Amount") shall be made by way of
a check made payable to Wagner Zemming Christensen, LLP Client Trust Account.
Payment shall be mailed within thirty (30) calendar days of Plaintiffs' delivery to
Defendant's counsel of a fully executed counterpart of this Agreement by Plaintiffs and
Plaintiffs' counsel, a valid W-9 form for Wagner Zemming Christensen, LLP, and a
signed Request for Dismissal of the Lawsuit, with prejudice, as to all parties and all
causes of action, to be held by Defendant's counsel pending receipt of the Settlement
Amount by Plaintiffs' counsel. Payment shall be sent via overnight mail to Plaintiffs'
counsel's address as listed in the Notice provision below.
3. Plaintiffs acknowledges and agrees that an IRS form 1099 reflecting receipt of the
payment set forth in paragraph 2, above, will be issued to Plaintiffs/Plaintiffs' counsel.
4. Defendant makes no representations or warranties as to any tax consequences
associated with this settlement or the payment of funds as set forth in paragraph 2, above.
No state or federal income tax payments or other employee salary deductions will be
withheld from the payments and the Parties agree that the determination of' tax
consequences of the settlement is the sole responsibility of Plaintiffs. Plaintiffs agree that
Plaintiffs are responsible for any taxes or other withholdings due to the federal
government or any state or local government entity as a result of the payment of the
amounts set forth in paragraph 2, above, and agrees to indemnify and hold Defendant
harmless for any related liability.
5. Other than as referenced in paragraph 2, the Parties hereto shall bear their own
counsels' fees, expenses, and costs incurred in connection with all disputes arising out of,
relating to, or connected with the Lawsuit and any claims attendant or related thereto.
6. Within five (5) calendar days of Plaintiffs' counsel's receipt of the Settlement
Amount, Plaintiffs shall cause Plaintiffs' counsel to file with the Court a dismissal of the
entire Lawsuit, with prejudice ("Dismissal"). Concurrently, Plaintiffs shall cause
Plaintiffs' counsel to effect withdrawal of their Appeal. Plaintiffs or Plaintiffs' counsel
shall notify Defendant's counselof the filing of the Request for Dismissal within two (2)
calendar days after it is filed and provide Defendant's counsel with a conformed copy of
the Dismissal when it becomes available. Plaintiffs' failure to timely file a Request for
Dismissal following receipt of the Settlement Amount shall result in Defendant's filing of
17942.00156441323410.1
Page 2 of 8
the Request for Dismissal identified in paragraph 2, above, which Plaintiffs hereby
expressly authorize. Plaintiffs shall notify counsel of the withdrawal of the Appeal within
two (2) calendar days after it is withdrawn and provide Defendant's counsel
documentation confirming same.
7. Plaintiffs agree not to initiate, or proceed with, any actions, causes of action,
claims, etc. that could be or have been asserted against Defendant arising out of their
employment with Defendant and/or the Lawsuit. To the extent that any such actions,
causes of action, claims, etc. are, or become, pending in any forum, Plaintiffs agree to
disclose such and to execute all documents necessary for the withdrawal of such actions,
causes of action, claims, etc., with prejudice and forthwith.
8. Plaintiffs, on behalf of Plaintiffs and Plaintiffs' representatives, executors, spouse,
heirs, assigns, and successors -in -interest, hereby release and forever discharge Defendant
and its current and former agents, officers, council members, employees, representatives,
assigns, successors -in -interest, counsels and insurers from any and all claims, causes of
action, actions, damages, losses, demands, accounts, reckonings, rights, debts, liabilities,
obligations, disputes, controversies, payments, costs, and counsels' fees of every kind and
character, known or unknown, existing or contingent, latent or patent, regarding the
matters alleged in, arising from, or related to Plaintiffs' employment with Defendant or
any claims related thereto, including the Lawsuit.
9. Defendant, on behalf of itself and its current and former agents, officers,
Defendant's council members, employees, representatives, assigns, successors -in -interest,
counsels and insurers hereby releases and forever discharges Plaintiffs and Plaintiffs'
counsel, agents, executors, heirs, assigns, and successors -in -interest from any and all
claims, causes of action, actions, damages, losses, demands, accounts, reckonings, rights,
debts, liabilities, obligations, disputes, controversies, payments, costs, and counsels' fees
of every kind and character, known or unknown, existing or contingent, latent or patent,
regarding the matters alleged in, arising from, or related to Plaintiffs' employment with
Defendant or any claims related thereto, including the Lawsuit.
10. It is the intention of the Parties hereto that the releases entered into by them as a
part of this Agreement shall be effective as a bar to all actions, causes of action,
obligations, costs, expenses, counsels' fees, damages, losses, claims, liabilities and
demands of whatsoever character, nature and kind, known or unknown, suspected or
unsuspected. In furtherance of this intention, the Parties hereby expressly waive any and
all rights or benefits conferred upon them by the provisions of Section 1542 of the
California Civil Code, which reads as follows:
A general release does not extend to claims that the creditor or
releasing party does not know or suspect to exist in his or her
favor at the time of executing the release and that, if known by
17942.00156141323410.1
Page 3 of 8
him or her, would have materially affected his or her
settlement with the debtor or released party.
11. The Parties hereby acknowledge that the foregoing waiver of the provisions of
Section 1542 of the California Civil Code was bargained for separately. The Parties
hereto expressly agree that the release provisions herein contained shall be given full
force and effect in accordance with each and all of their express terms and provisions,
including but not limited to those terms and provisions relating to unknown or
unsuspected claims, demands, and causes of action hereinabove specified. The Parties
specifically agree to assume the risk of the subsequent discovery or understanding of any
matter, fact, or law which if now known or understood would in any respect have affected
this agreement.
12. Each of the Parties is aware that it may hereafter discover claims or facts in
addition to or different from those they now know or believe to be true with respect to the
matters related herein. Nevertheless, it is the intention of each of the Parties fully, finally,
and forever to settle and release all such matters, and all claims related to those matters.
13. The Parties represent and warrant that they fully understand each of the terms of
this Agreement and their consequences and that they have sought the advice of counsel
prior to executing this Agreement.
14. This Agreement is binding upon and shall inure to the benefit of the Parties, their
respective agents, counsels, representatives, executors, heirs, assigns, successors -in -
interest, trusts, partnerships, and joint ventures.
15. Each person executing this Agreement does hereby personally represent and
warrant to the other signatories that they have the authority necessary to execute this
Agreement, and that no other consents or approvals of anyone are required or necessary
for this Agreement to be binding
16. Any notice, request, or communication required to be given to either Party under
this Agreement shall be given in writing and shall be sent by overnight mail, email, or
other traceable form of delivery to the addresses below:
To Defendant:
17942.00156\41323410.1
Scott Ditfurth, Esq.
Christopher Moffitt, Esq.
Best Best & Krieger LLP
3390 University Avenue, 51h Floor
Riverside, California, 92501
Page 4 of 8
To Plaintiffs:
Telephone: (951) 686-1450
Email: scott.ditfurth@bbklaw.com
chris.moffitt@bbklaw.com
Daniel Moussatche, Esq.
Dennis E. Wagner, Esq.
Wagner Zemming Christensen, LLP
1325 Spruce Street, Suite 200
Riverside, California 92507
Telephone: (951) 686-4800
Email: DM@wzclawfirm.com;
dew@wzclawfirm.com
17. This Agreement shall in all respects be interpreted, enforced, and governed by and
under the laws of the State of California.
18. The Parties hereto acknowledge that they have relied wholly upon their own
individual judgment, belief, and knowledge of the existence, nature, and extent of each
claim, demand, or cause of action that they may have against the other Parties hereto
which is hereby released and that they have not been influenced to any extent in entering
into this Agreement by any representations or statements regarding any such claim,
demand, or cause of action made by any other party hereto.
19. This Agreement has been jointly negotiated and drafted. The language of this
Agreement shall be construed as a whole according to its fair meaning, and not strictly
for or against any of the Parties.
20. Should any term of this Agreement be deemed unlawful, that provision shall be
severed and that remaining terms shall continue to be valid and fully enforceable.
21. This Agreement cannot be modified except by written document signed by all of
the Parties.
22. The Parties expressly acknowledge and agree that this Agreement constitutes a
single, integrated written agreement expressing the intentions of the Parties concerning
the Lawsuit and claims arising out of or relating to Plaintiffs' employment with the
17942.00156\41323410.1
Page 5 of 8
Defendant. There is no other agreement, written or oral, express or implied, between the
Parties with respect to such claims.
23. The Parties agree to execute such other documents and take such other action as
may be reasonably necessary to finalize and perform this Agreement.
24. This Agreement may be executed by signature of each of the parties hereto, or
their authorized representatives, on multiple copies of this Agreement, i.e., a counterpart,
including copies transmitted by electronic mail or facsimile machine, and upon being so
executed by all parties hereto, shall be effective as if all signatures appeared on the
original of this Agreement.
DATED:
DATED: 05/22/2023
DATED:
17942.00156\41323410.1
Plaintiff Laurel Falconieri
Plaintiff Leslie Martinez
Defendant City of Redlands
By: Charles Duggan, Jr.
City Manager
Page 6of8
19. This Agreement has been jointly negotiated and drafted. The language of this
Agreement shall be construed as a whole according to its fair meaning, and not strictly for or
against any of the Parties.
20. Should any term of this Agreement be deemed unlawful, that provision shall be
severed and that remaining terms shall continue to be valid and fully enforceable.
21. This Agreement cannot be modified except by written document signed by all of
the Parties.
22. The Parties expressly acknowledge and agree that this Agreement constitutes a
single, integrated written agreement expressing the intentions of the Parties concerning the
Lawsuit and claims arising out of or relating to Plaintiffs' employment with the Defendant.
There is no other agreement, written or oral, express or implied, between the Parties with respect
to such claims.
23. The Parties agree to execute such other documents and take such other action as
may be reasonably necessary to finalize and perform this Agreement.
24. This Agreement may be executed by signature of each of the parties hereto, or
their authorized representatives, on multiple copies of this Agreement, i.e., a counterpart,
including copies transmitted by electronic mail or facsimile machine, and upon being so
executed by all parties hereto, shall be effective as if all signatures appeared on the original of
this Agreement.
DATED: O51231l0 2-3
DATED:
DATED:
Signatures continue on following page.
17942.00156)41323410A
Plaintiff aurel Falconieri
Plaintiff Leslie Martinez
Defendant City of Redlands
By: Charles Duggan, Jr.
City Manager
Page 5 oil
Signatures continue on following page.
17942.00156\41323410.1
Page 7 of 8
Approved as to form:
DATED:
DATED:
17942.00156\41323410.1
Attorneys for Plaintiffs
Wagner Zemming Christensen, LLP
Daniel Moussatche, Esq.
Dennis E. Wagner, Esq.
Attorneys for Defendant
Best Best & Krieger, LLP
Scott Ditfurth
Christopher Moffitt
Page 8 of 8