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HomeMy WebLinkAboutContracts & Agreements_173-2025SETTLEMENT AGREEMENT AND GENERAL RELEASE This SETTLEMENT AGREEMENT AND GENERAL RELEASE ("Agreement") is made by and between Plaintiff FLYNN RESTAURANT GROUP/APPLE SO CAL LLC ("Flynn"), and Defendant CITY OF REDLANDS ("the City"). RECITALS This Agreement is entered into based upon the following facts: A. Disputes and differences have arisen between Flynn and the City as a result of a police action and shooting that occurred on September 3, 2021 in one of Flynn's restaurants ("the Incident"). Flynn maintains that it has suffered property damage, incurred workers' compensation costs for its employees, and suffered other damages as a result of the Incident. B. Flynn filed suit on March 1, 2023, in the Superior Court of the State of California, County of Riverside, by way of Petition for Relief from Late Claim, entitled FLYNN RESTAURANT GROUP/APPLE SO CAL, LLC a subsidiary of FLYNN RESTAURANT GROUP, LP v. CITY OF REDLANDS and DOES I TO 20, Case No.: CVMV230tO29 ("the Action"). The Action was eventually transferred to San Bernardino County Superior Court and was assigned a new case number upon transfer: CIVSB2412340. C. Flynn alleges in the Action that it is entitled to an award against the City for special and general damages as a result of the Incident. D. The City denies all allegations made by Flynn in the Action. E. Flynn and the City now wish to compromise and settle all claims which Flynn has or may have arising from or in any way related to the Incident or the Action. SETTLEMENT AGREEMENT AND GENERAL RELEASE FLYNN RESTAURANT GROUP/APPLE SO CAL, LLC a seibsidiaty ofFLYNN RESTAURANT GROUP, LP v. CITY OF REDLANDS and DOES I TO 20 F. This Agreement is intended to fully and finally resolve and settle all claims Flynn has or may have arising from or in any way related to the Incident or the Action. G. Flynn has full authority to settle the Action on its own behalf. H. Now, in consideration of the foregoing recitals, which are incorporated herein, the mutual understandings contained in this Settlement Agreement and other good, valuable and sufficient consideration, the Parties agree as follows: AGREEMENT 1. Settlement Payment In consideration of the release described in Section 2, the City agrees to pay Flynn the total sum of $55,000 ("the Settlement Amount") made payable to Apple SoCal LLC. The City will pay the Settlement Amount within 30 days after full execution of this Agreement and a copy of the Flynn W-9 form. The Settlement Amount will be delivered to Flynn's counsel, Tharpe & Howell, LLP, attn: Stephanie Forman, at 15250 Ventura Boulevard, Ninth Floor, Sherman Oaks, California. Within 10 days of receipt of the check for the Settlement Amount, Flynn will file a dismissal of the entire Action with prejudice. 2. Release and Discharge In consideration of the Settlement Payment, Flynn hereby releases and discharges the Cityfrom all claims of any kind, whether known or unknown, that Flynn has or may have arising from or in any way related to the Incident or the Action. The release shall extend to the City and the City's employees, agents, public officials, elected officials, successors, and insurers. The release shall be binding on Flynn and its corporate parents, affiliates, and subsidiaries and their respective successors. 3. Waiver of Civil Code Section 1542 -2- SETTLEMENT AGREEMENT AND GENERAL RELEASE FLYNN RESTAURAW GROUP/APPLE SO CAL, LLC et subsidiay of FLYNN RESTAURANT GROUP, LP v. CITY OF REDLANDS and DOES f TO 20 Flynn acknowledges and agrees that this Agreement is a general release and a compromise of matters involving disputed issues of law and fact. Flynn further acknowledges that it has read the provisions of California Civil Code section 1542, and waive all rights under that law. Section 1542 provides: SECTION 1542. GENERAL RELEASE; EXTENT. 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 HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. Flynn acknowledges that it may hereafter discover facts different from, or in addition to, those which it now believes to be true with respect to the release of claims. Flynn agrees that the foregoing release shall be and remain effective in all respects notwithstanding such different or additional facts or any discovery thereof. Flynn further acknowledges and agrees that waiver of rights under Section 1542 of the California Civil Code has been separately bargained for and is an essential and material term of this Agreement, and, without such waivers, this Agreement would not have been entered into. 4. Warranties 4.1 Flynn has satisfied or will satisfy from the Settlement Amount all liens third parties may have as a result of the Action or Incident, including attorney's fees and costs. 4.2 Flynn represents that all medical expenses incurred as a result of workers' compensation claims brought by Flynn employees have been paid. 4.3 In entering this Agreement, Flynn has relied solely on its own judgment and the advice of counsel concerning the extent and nature of any damages it may have sustained as a 3- SETTLEMENT AGREEMENT AND GENERAL RELEASE FL YAW RESTAURANT GROUP/APPLE SO CAL, LLC a subsidiary ofFLYNN RESTAURANT GROUP. LP v. CITYOF REDLANDS and DOES 1 TO 20 result of the Incident or the Action, Flynn has not been influenced by any statement made by or on behalf of the City concerning the nature and extent of Flynn's damages or its right to recover such damages, 4.4 Flynn warrants and represents that it has read this Agreement in full, and that it fully agrees to be bound by the terms and conditions of the Agreement. 4.5 Flynn represents and warrants that it has the sole right and exclusive authority to execute this Agreement and to receive the Settlement Amount. Flynn has not sold, assigned, transferred, or conveyed to any third party any of its claims arising from or in any way related to the Incident or the Action. 5, Attorneys' Fees Flynn and the City shall each bear their own attorneys' fees and costs arising from or in any way related to the Incident, the Action, or this Agreement. 6. Disclaimer of Liability by the City Flynn understands and agrees that the City disputes the claims Flynn has made in the Action. The negotiation of this Agreement and the payment of the Settlement Amount shall not constitute an admission of I iability on the part of the City. 7. Entire Agreement This Agreement contains all of the terms of the settlement of the Action and Incident between Flynn and the City, and it supersedes and replaces any prior understanding, written or oral, between Flynn and the City concerning the claims arising from or in any way related to the Incident or the Action. The Agreement cannot be changed except by a subsequent written document properly executed on behalf of Flynn and the City. S, Intentionally ommitted. -4- SETTLEMENT AGREEMENT AND GENERAL RELEASE FLYNN RESTAURANT GROUP/APPLE SO CAL, LLC a subsidimy of FLYNN RESTAURANT GROUP, LP v. CITYOF REDLANDS and DOES I TO 20 9. Construction under California Law This Agreement is entered into in the State of California and shall be construed and interpreted in accordance with California law. I warrant and represent that I am authorized to sign this Agreement on behalf of Flynn Restaurant Group/Apple SoCal LLC. FLYNN RESTAURANT GROUP/APPLE SOCAL LLC DATED : ( 0 1 '� By: Sarah White Its: Director of Risk Management I warrant and represent that I am authorized to sign this Agreement on behalf of the City of Redlands. THE CITY OF REDLANDS �j DATED: DATES: � ~ 12' 262 S -5- n B . nice McConnell Its: Assistant City Manager ATTEST: a ne Donallil69n, City Clerk SETTLEMENT AGREEMENT AND GENERAL RELEASE FLYNN RESTA URANT GROUP/APPLE SO CAL, LLC a subsidiary of FLYNN RESTAURANT GROUP. LP v. CITY OF REDLANDS and DOES I TO 20