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CM-2014-409City of Round Rock Agenda Item Summary Agenda Number: Title: Consider executing a Compromise Settlement and Release Agreement with Round Rock Life Connection Church, Inc. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 5/2/2014 Dept Director: Steve Sheets Cost: $0.00 Indexes: Attachments: Department: Legal Department Text of Legislative File CM -2014-409 Consider executing a Compromise Settlement and Release Agreement with Round Rock Life Connection Church, Inc. The court granted the City's motion for summary judgment disposing of the case and awarding the City $40,000 in attorney's fees. This ruling has been appealed. The City perfected an abstract of judgment which placed a lien on all of the property owned by the plaintiffs in the case, including Round Rock Life Connection Church, Inc. The Church has agreed to drop out of the appeal and pay the City $3,000 in exchange for a release of liability and release of abstract of judgment. The Church has already dropped out of the appeal. Staff recommends approval. City of Round Rock Page 1 Printed on 4/25/2014 LEGAL DEPARTMENT APPROVAL FOR CITY COUNCIL/CITY MANAGER ACTION Required for Submission of ALL City Council and City Manager Items Department Name: Legal Project Mgr/Resource: Steve Sheets Council Action: ORDINANCE Agenda Wording Round Rock Life Connection Church, Inc., et al Project Name: v. City of Round Rock ContractorNendor: n RESOLUTION City Manager Approval CMA Wording Consider executing a Compromise Settlement and Release Agreement with Round Rock Life Connection Church, Inc. Attorney Approval ErAttorney Notes/Comments Date a I 2,s 1 O:\wdox\SCCInts\0114\0927\MISC\00297695.XLS Updated 6/3/08 COMPROMISE SETTLEMENT AND RELEASE AGREEMENT This Compromise, Settlement, and Release Agreement ("Agreement") dated effective as of the a . day of Piam , 2014, is by and between ROUND ROCK LIFE CONNECTION CHURCH, INC. ("Church") and THE CITY OF ROUND ROCK, TEXAS ("City") (collectively, "the Parties") and evidences as follows: RECITALS WHEREAS, the City obtained a judgment (the "Judgment") against the plaintiffs in the matter styled ROUND ROCK LIFE CONNECTION CHURCH, INC.; TEDDY J. STAUB, ORLENA & HOUSSAIN MEHRABIAN; LUCIANO RIVERA; TIM & JUDY HUBBLE; AND MARY JO GREENOUGH v. CITY OF ROUND ROCK, Cause No. 09-604-C368, in the 368th District Court in Williamson County, Texas; which was appealed in the appellate case styled ROUND ROCK LIFE CONNECION CHURCH, INC., et al v. CITY OF ROUND ROCK; Cause No. 03 -14 -00011 -CV, the Third Court of Appeals (collectively, the "Lawsuit"); and WHEREAS, there is a bona fide dispute between the Parties regarding the liability of and amount owed by the Church under the Judgment in the Lawsuit; and WHEREAS, the Parties have agreed to resolve their differences; NOW, THERFORE, for and in consideration of the obligations and promises herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties to this Agreement agree as follows: (1) Church agrees, in exchange for the consideration given by the City, to A. Pay the City in good funds $3,000.00 in full satisfaction of the Judgment in the Lawsuit within ten (10) business days of the execution of this Agreement by all Parties. B. Irrevocably and unconditionally release, acquit, and forever discharge the City, its agents, officers, directors, council members, employees and representatives from all obligations, damages, claims or causes of action, suits proceedings, liabilities, rights, costs, losses, and expenses (including attorney's fees and costs actually incurred), known or unknown, now existing or hereinafter arising from the Judgment or the Lawsuit. (2) The City agrees, in exchange for the consideration given by the Church, to: A. Execute the release of judgment attached hereto as Exhibit A, concerning the Judgment entered in the Lawsuit and return the original executed release to the Church to be filed in the public records within ten (10) business days of receipt of the payment described in paragraph 1A above; and 0026972.doc CM -2014-409 B. Irrevocably and unconditionally release, acquit, and forever discharge the Church, its members, agents, officers, directors, employees, elders, and representatives from all obligations, damages, claims or causes of action, suits, proceedings, liabilities, rights, costs, losses, and expenses (including attorney's fees and costs actually incurred), known or unknown, now existing or hereinafter arising from the Judgment or the Lawsuit. The matters for which the Parties have released, acquitted, and forever discharged each other pursuant to this paragraph and paragraph 1(B) above are referred to herein collectively as "the Released Matters." (3) This Agreement is a compromise of disputed claims and shall never, at any time or for any purpose, be considered an admission of liability or wrongdoing by any Party. The Parties expressly deny any such liability or wrongdoing. The Parties hereby acknowledge that the Consideration recited herein is good, valuable, and sufficient consideration for the agreements herein. (4) The Parties expressly represent and warrant that prior to the date of execution by them of this Agreement and any of the documents to be delivered contemporaneously with the execution hereof that (i) all necessary approvals for such executions and deliveries by and on behalf of this Agreement and such documents have been duly and lawfully obtained and evidenced in writing as required by law, (ii) before executing this Agreement, they became fully informed of the contents, terms, conditions and effects of this Agreement, (iii) this Agreement is fully and forever binding on them, their successors and assigns, and (iv) no promise or representation of any kind have been made to them by anyone, except as is expressly stated in this Agreement. Further, each of the parties hereto represent to each other party hereto that no other additional act, approval or consent is required for the due and valid execution and delivery of this Agreement by each of said parties. (5) The Church represents that it has not heretofore filed any charges, complaints, or suits against the City with any federal, state, or local governmental agencies or courts other than the Lawsuit. The City represents that it has not heretofore filed any charges, complaints, or suits against the Church or any other person or entity release herein, with any federal, state, or local governmental agencies or courts. (6) The City represents and warrants that it has not assigned, sold, or otherwise conveyed to any other person or other legal entity any right, judgment, claim, or cause of action released herein or any portion thereof or interest therein. (7) The City represents that it has never requested the Church to connect its property to City utilities and has no reason to believe that it would do so in the foreseeable future. The City further represents that if the City determined that health, safety, and welfare necessitated the Church to connect to the City's water and sewer system, the Church would have the opportunity to address the health, safety, and welfare issue before being made to connect. 2 (8) This Agreement contains the entire agreement between the Parties and supersedes any and all prior agreements, arrangements or understandings (whether written or oral) between any or all of the Parties regarding the resolution of the Judgment and the Lawsuit. (9) If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future state or federal laws or rules and regulations promulgated thereunder, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be automatically included as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. (10) The Parties agree to execute such other and further documentation as needed to carry out the intent of this Agreement. (11) It is understood and agreed that this Agreement shall be governed by, construed and enforced in accordance with, and subject to, the laws of the State of Texas, without regard to the conflicts of law principles thereof. (12) This Agreement may be amended only by a written instrument executed by and agreed to by the Parties, and may not be changed, waived, terminated, or modified orally. (13) The language of all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against any of the Parties. (14) This Agreement has been executed in multiple counterparts, each of which shall be deemed an original for all purposes. The Parties further agree that facsimile signatures are acceptable in lieu of originals. (15) Each party agrees to pay its own attorneys' fees related to the Lawsuit. (16) If it should be necessary for either Party to bring suit to enforce the terms of this Agreement, the prevailing party is entitled to recovery his reasonable and necessary attorney's fees and costs from the non -prevailing party. THE CITY OF ROUND ROCK, TEXAS B 3 ROUND ROCK LIFE CONNECTION CHURCH, INC., A Texas nonprofit corporation Ron Elliot, Secretary/Treasurer, Church Board Leonora Pompa, Mem r, Church Board 64-ncei d6-Yvyt. n4) es Cannon, Member, Church Board James Patterson, Chairman, Church Board 4 ) STATE OF TEXAS) COUNTY OF WILLIAMSON) JUDGMENT LIEN ) On September 24, 2013, in the matter styled ROUND ROCK LIFE CONNECTION CHURCH, INC.; TEDDY J. STAUB, ORLENA & HOUSSAIN MEHRABIAN; LUCIANO RIVERA; TIM & JUDY HUBBLE; AND MARY JO GREENOUGH v. THE CITY OF ROUND ROCK, TEXAS, Cause No. 09-604-C368, in the 368th District Court in Williamson County, Texas, Defendant recovered a judgment against all of the Plaintiffs therein, including ROUND ROCK LIFE CONNECTION CHURCH, INC. An abstract of the judgment just described appears in document number 2014002680 of the Public Records of Williamson County, Texas. A portion of the judgment has been paid to a specified extent to THE CITY OF ROUND ROCK, TEXAS by ROUND ROCK LIFE CONNECTION CHURCH, INC. and, accordingly, as authorized attorney of record for THE CITY OF ROUND ROCK, TEXAS, who is the party entitled to receive payment of the judgment, I hereby release all liens existing on any property of ROUND ROCK LIFE CONNECTION CHURCH, INC. by reason of such judgment and the recording and indexing of any abstract of it. This release does not apply to any other Defendant named in the judgment. SIGNED on , 2014. [SIGNATURES TO FOLLOW] PARTIAL RELEASE OF EXHIBIT A By: Stephan L. Sheets Attorney for Judgment Plaintiff State Bar No.: 18180800 Sheets & Crossfield, P.C. 309 E Main St. Round Rock, TX 78664 Tel. (512) 255-8877 Fax. (512) 255-8986 BEFORE ME, the undersigned Notary Public, on this day personally appeared Stephan L. Sheets, the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. TO CERTIFY WHICH, witness my hand and official seal on [Seal] Notary Public for the State of My Commission Expires: April 24, 2014 Mr. Jason M. Rammel Sheets & Crossfield, PC 309 E. Main Street Round Rock, Texas 78664 Dear Jason: 0, 1 1: 1;' On behalf of Life Connection Church, the Compromise Settlement and Release Agreement executed by the Church is enclosed. Please send a fully executed copy to Josh Schroeder once it has been signed on behalf of the City. Of course, if you have any questions please contact Josh Schroeder and myself. Best Regards, anya D. eMent, Esq. Cc: Joshua Schroeder (via email)