R-91-1660 - 9/26/1991WHEREAS, in 1987, the City of Round Rock filed a cause of action
against Glenn Neans et.al. for failure to perform certain verbal and
contractual agreements regarding the development of the residential
subdivision known as Round Rock West, and
WHEREAS, on October 13, 1988, Mr. Neans tranferred to the City
his cause of action against certain carriers of liability insurance
for failure to tender a defense for Mr. Neans, and
WHEREAS, said insurance carriers now desire to settle said cause
of action with the City, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Settlement Agreement between the City and United
States Fire Insurance Company, et.al, said agreement being attached
hereto and incorporated herein for all purposes.
RESOLVED this 26th day of September, 1991.
ATTEST:
NE LAND, City Secretary
RS09261D
RESOLUTION NO. /66M
MIKE ROBINSON, Mayor
City of Round Rock, Texas
Pursuant to a mediation on September 16 and September 17,
1991, the parties to this mediation agree as follows:
a.
b.
The total settlement is $5,800,000 to be paid as follows:
MEMORANDUM AGREEMENT BETWEEN PARTIES TO
CAUSE NO. 89- 137 -C, CITY OF ROUND ROCK, ET AL
V. USIG
$5,300,000 by Crum & Forester.
$ 100,000 by Sentry Insurance Company
c. $ 400,000 by Houston General Insurance_Company
d. Taxable costs are to be paid by parties incurring same
except the taxable costs incurred by the plaintiff, up
to the sum of $20,000 to be paid $10,000 by Crum &
Forester, $9,000 by Houston General, and $1,000 by
Sentry Insurance. In the event costs are less than
$20,000, costs will be paid 10 /20ths by Crum &
Forester, 9 /20ths by Houston General and 1 /20th by
Sentry Insurance.
The payments will be made by certified check, said checks to
be payable to the trust account of Longley & Maxwell in ten (10)
days of the date. settlement papers have been drafted. Provided,
however, that settlement papers are drafted in five (5) working
days of the date of this agreement.
The settlement papers shall be:
a. A take - nothing judgment.
b. A policyholder's release.
c. Release of all claims by City of Round Rock, Neans
Interests, and any other claimants or third -party
plaintiffs.
\1731 \292 -1-
i t-
AGREED:
-
Longley & Maxwell
Attorneys for Plaintiffs
, Howell, Smith / Lee
\1731 \292 -2-
Vial amrLtonIMinton & Burton
At orneys for Crum & Forester
Thornt•n ers
Genera Attorneys for Houston General
/ 1( - )V./( / ._,a,
dge Jim Meyers
rneys for Sentry Insurance Mediator
DATE: September 24, 1991
SUBJECT: City Council Meeting, September 26, 1991
ITEM:
9.D. Consider a resolution authorizing the Mayor to
execute a Settlement Agreement between the
City of Round Rock and United States Fire Insurance
Company, et al.
STAFF RESOURCE PERSON: Steve Sheets
A presentation will be made at the meeting.