R-06-08-10-10F2 - 8/10/2006RESOLUTION NO. R -06-08-10-10F2
WHEREAS, the City of Round Rock ("City") is a defendant in Cause
No. 97-314-C277; Richard Wallace Pearce and Jesse Ray Blann vs. City of
Round Rock, et al., and
WHEREAS, a proposal has been made to settle the lawsuit on terms
acceptable to the City, and
WHEREAS, the City Council wishes to authorize the Mayor to
execute a Settlement Agreement for the above referenced cause, 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 in Cause No. 97-314-C277;
Richard Wallace Pearce and Jesse Ray Blann vs. City of Round Rock, et
al., a copy of same being attached hereto as Exhibit "A" and
incorporated herein.
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
RESOLVED this 10th day of August,
ATTEST! -J� A
•
• I Allp
Mayor
of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secreta
WPFDesktop/::ODMA/WORLDO%/O: /wdox/RESOLVLI/R60810F2 .WPO/rmc
SETTLEMENT AGREEMENT
AND FULL AND FINAL RELEASE
This Settlement Agreement and Full and Final Release ("Agreement") is entered into
between The City of Round Rock ("Round Rock") and Richard Wallace Pearce and Jesse Ray
Blann, and their heirs, agents, assigns, entities, corporations, and representatives (collectively
referred to as the "Plaintiffs").
I.
WHEREAS, the parties are in dispute over the legality of nine billboard structures erected
by the Plaintiffs in 1996 in Round Rock's Extraterritorial Jurisdiction;
WHEREAS, this dispute has been the subject of protracted litigation between the parties
in the lawsuits styled: Richard Wallace Pearce and Jesse Ray Blann v. City of Round Rock, In
the 368th Judicial District Court of Williamson County, Texas, Cause No. 97-098-C368; and
Richard Wallace Pearce and Jesse Ray Blann v. City of Round Rock, Frank del Castillo, Terry
Hagood, Keith Hickman, Brian Lott, Mark Silla, and Joseph Vining, In the 277th Judicial District
Court of Williamson County, Texas, Cause No. 97-314-C277; City of Round Rock, Texas v.
Richard Wallace Pearce, Jesse Ray Blann, and Jaab Investements, Inc., In the 368th Judicial
District Court of Williamson County, Texas, Cause No. 98-353-C368; and Richard Wallace
Pearce and Jesse Ray Blann v. City of Round Rock, Frank del Castillo, Terry Hagood, Keith
Hickman, Brian Lott, Mark Silla, and Joseph Vining, In the Court of Appeals for the Third
Judicial District of Texas, at Austin, Cause No. 03 -98 -00233 -CV;
1
EXHIBIT
WHEREAS, the Court of Appeals for the Third Judicial District of Texas, in Pearce v.
City of Round Rock, 78 S.W.3d 642 (Tex.App.—Austin 2002, pet. denied), ruled that four of the
Plaintiffs' signs were entitled to non -conforming use status as billboards; and
WHEREAS, the parties are aware of the risks, uncertainties, and costs of continued
litigation and now desire to compromise and settle all matters currently in dispute between them.
Il.
The terms of this Agreement are as follows:
1. Upon final approval of this Agreement by the Round Rock City Council, and
subject to complying with all applicable building codes, regulations, and ordinances except as
necessary to implement the terms of this Agreement, Plaintiffs shall be entitled to erect one
illuminated 14' by 48' double-faced legal Non -Conforming Use Billboard, with a height not to
exceed that established by the Texas Department of Transportation in Title 43, Part 1, Chapter
21, Subchapter I, §21.158, Texas Administrative Code, at 2960 Jazz Street, Round Rock, Texas.
The faces on the billboard shall be oriented to be viewed from State Highway 45. Conditioned
upon and subject to Plaintiffs' complying with the aforesaid ordinances and requirements, Round
Rock shall grant the permits or applications necessary to construct and operate this Billboard.
2. Upon final approval of this Agreement by the Round Rock City Council, and
subject to complying with all applicable building codes and ordinances except as necessary to
implement the terms of this Agreement, Plaintiffs shall be entitled to erect one illuminated 14' by
48' double-faced legal Non -Conforming Use Billboard, with a height not to exceed that
established by the Texas Department of Transportation in Title 43, Part 1, Chapter 21,
Subchapter I, §21.158, Texas Administrative Code, at 3125 Louis Henna Blvd. (State Highway
2
45), Rock, Texas. Conditioned upon and subject to Plaintiffs' complying with the aforesaid
ordinances and requirements, Round Rock shall grant the permits or applications necessary to
construct and operate this billboard.
3. Plaintiffs agree that they will not allow the advertisement of any sexually oriented
business on either of the Billboards as that term is defined by Round Rock's ordinances. The
Parties agree that the actual damages that might be sustained by Round Rock by reason of the
breach by Plaintiffs of the aforesaid covenant are uncertain and would be difficult of'
ascertainment, and that the sum of $500.00 for each day that the breach continues would be
reasonable compensation for such breach. Plaintiffs hereby promise to pay and Round Rock
hereby agrees to accept, such sum as liquidated damages, and not as a penalty, in the event of
such breach. Prior to initiating any legal action to enforce this covenant, Round Rock agrees that
it will provide Plaintiffs with written notice of any alleged violations of this covenant, after
which Plaintiffs shall have ten days to cure such alleged violation.
4. Plaintiffs agree that they will not be entitled to erect any other non -conforming
signs or billboards within Round Rock's jurisdiction.
5. Within five days upon final approval of this Agreement by the parties, in Cause
No. 97-414-C277 Plaintiffs agree to file a motion to dismiss with prejudice.
III.
The parties acknowledge the adequacy of consideration as expressed by the recitations
and mutual covenants in this Agreement.
3
IV.
In consideration of the mutual promises and covenants contained in this Agreement, the
parties hereby fully release, acquit, and discharge one another (including their agents, officials,
employees, representatives, attorneys, and insurers) from any and all claims, liabilities, causes of
action or damages, whether known or unknown, arising out of or made the basis of the above -
referenced disputes and litigation.
V.
The Plaintiffs hereby each jointly and separately represent and warrant that:
1. They each thoroughly understand the terms of this Agreement and have received
the advice from their counsel regarding the terms and consequences of this Agreement;
2. They each enter into this Agreement knowingly, freely and voluntarily;
3. They each understand and agree that this Agreement contains everything they will
ever receive from Round Rock pertaining to the aforementioned disputes and litigation between
the parties;
4. Except for the promises contained in this Agreement, no representations regarding
this Agreement or promises made by Round Rock, or any agent, attorney, or representative of
Round Rock regarding this Agreement, has influenced them in entering into this Agreement;
5. They each fully understand and agree that the two legal Non -Conforming Use
Billboards allowed to be erected under the terms of this Agreement will be considered as non-
conforming uses under Round Rock's ordinances and state law;
4
6. They have not assigned or conveyed any interest in the claims that have or could
have been asserted in the above -referenced lawsuits or the claims that are released in this
Agreement; and
7. They are the sole owner of any released causes of action and that no third party
has any interest in said claims.
VI.
This Agreement is made in settlement of disputed claims and causes of action, and the
provisions in this Agreement are not to be construed as an admission of liability by any party,
which liability is hereby denied. Further, the parties agree that nothing in this Agreement shall
be construed as a waiver of Round Rock's ordinances, rules, regulations, or other laws except as
necessary to implement the terms of this Agreement.
VII.
Each party shall bear its own attorney's fees and costs of court.
VIII.
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective representatives, officials, agents, employees, successors and assigns.
IX.
In the event any litigation is initiated after the date of this Agreement to construe and/or
enforce this Agreement or any term hereof or in connection with any alleged breach of this
Agreement, any prevailing party shall be entitled to recover all costs of litigation, including
reasonable attorney's fees, expert fees, court costs, and expenses from and against any non -
5
prevailing party. Further, mandatory venue for such litigation shall be in Williamson County,
Texas.
X.
Unless the basis of the bargain among the Parties hereto is destroyed or rendered
ineffective by invalidity or unenforceability of any provision hereof, if any provision of this
Agreement should be held to be void or unenforceable in any respect, then the remaining portions
of this Agreement shall remain in full force and effect.
XI.
The Parties and their respective attorneys participated in the drafting and preparation of
this Agreement. Therefore, this Agreement will not be construed in favor of or against any party
on the basis that such party did or did not author this Agreement.
XII.
Plaintiffs have represented they have acquired lease options on the billboard sites
described in this Agreement and are in the process of seeking the necessary permits from the
Texas Department of Transportation. In the event the lease options are terminated by the lessors
prior to the date when the billboards are erected or if the Texas Department of Transportation
refuses to permit the proposed billboards, the Parties agree to use their good faith best efforts to
secure a similar alternate site or sites which are mutually acceptable to the Parties.
6
XIII.
This Agreement contains the entire agreement between the Parties and supersedes all
prior agreements, understandings, or proposals, whether written or oral, relating to the above -
referenced disputes and lawsuit.
EXECUTED on this day of August, 2006.
THE CITY OF ROUND ROCK, TEXAS
By:
Nyle Maxwell, Mayor
BEFORE ME, a Notary Public, on this day personally appeared Nyle Maxwell, Mayor the
City of Round Rock, Texas, known to me to be the person whose name is subscribed to the
foregoing instrument and who, being duly sworn, did state and acknowledge to me on his oath
that he has read and executed this SETTLEMENT AGREEMENT for the purposes and
consideration therein expressed.
Given under my hand and seal of office this day of August, 2006.
Notary Public for the State of Texas
EXECUTED on this day of August, 2006.
7
RICHARD WALLACE PEARCE
BEFORE ME, a Notary Public, on this day personally appeared Richard Wallace Pearce,
known to me to be the person whose name is subscribed to the foregoing instrument and who,
being duly sworn, did state and acknowledge to me on his oath that he has read and executed this
SETTLEMENT AGREEMENT for the purposes and consideration therein expressed.
Given under my hand and seal of office this Z% day of July, 2006.
1
BETH A. REYNOLDS
Notary Public, State of Texas
My Commission Expires
July 30, 2007 -
Notary Public _for the' Texas
EXECUTED on this Z,7 day of July, 2006.
RAY BLANK
BEFORE ME, a Notary Public, on this day personally appeared Jesse Ray Blann, known
to me to be the person whose name is subscribed to the foregoing instrument and who, being
duly sworn, did state and acknowledge to me on his oath that he has read and executed this
SETTLEMENT AGREEMENT for the purposes and consideration therein expressed.
Given under my hand and seal of office this 2,7 day of July, 2006.
BETH A. REYNOLDS
Notary Public, State of Texas
My Commission Expires
July 30, 2007
Notary Public for the Statf Texas
END OF AGREEMENT
8
DATE: August 3, 2006
SUBJECT: City Council Meeting - August 10, 2006
ITEM: 10.F.2. Consider a resolution authorizing the Mayor to execute a settlement
agreement concerning the Richard Wallace Pearce and Jesse Ray Blann
vs. City of Round Rock et a/., lawsuit.
This item will be addressed after the Executive Session.
EXECUTE D
DOCUMENT
FOLLOWS
SETTLEMENT AGREEMENT
AND FULL AND FINAL RELEASE
This Settlement Agreement and Full and Final Release ("Agreement") is entered into
between The City of Round Rock ("Round Rock") and Richard Wallace Pearce and Jesse Ray
13lann, and their heirs, agents, assigns, entities, corporations, and representatives (collectively
referred to as the "Plaintiffs").
I.
WHEREAS, the parties are in dispute over the legality of nine billboard structures erected
by the Plaintiffs in 1996 in Round Rock's Extraterritorial Jurisdiction;
WHEREAS, this dispute has been the subject of protracted litigation between the parties
in the lawsuits styled: Richard Wallace Pearce and Jesse Ray Blann v. City of Round Rock, In
the 368th Judicial District Court of Williamson County, Texas, Cause No. 97-098-068; and
Richard Wallace Pearce and Jesse Ray Blann v. City of Round Rock, Frank del Castillo, Terry
Hagood, Keith Hickman, Brian Lott, Mark Silla, and Joseph Vining, In the 277th Judicial District
Court of Williamson County, Texas, Cause No. 97-314-C277; City of Round Rock, Texas v.
Richard Wallace Pearce, Jesse Ray Blann, and Jaab Investements, Inc., In the 368th Judicial
District Court of Williamson County, Texas, Cause No. 98-353-C368; and Richard Wallace
Pearce and Jesse Ray Blann v. City of Round Rock, Frank del Castillo, Terry Hagood, Keith
Hickman, Brian Lott, Mark Silla, and Joseph Vining, In the Court of Appeals for the Third
Judicial District of Texas, at Austin, Cause No. 03 -98 -00233 -CV;
R -06-o8-10- ioFa,
1
WHEREAS, the Court of Appeals for the Third Judicial District of Texas, in Pearce v.
City of Round Rock, 78 S.W.3d 642 (Tex.App.—Austin 2002, pet. denied), ruled that four of the
Plaintiffs' signs were entitled to non -conforming use status as billboards; and
WHEREAS, the parties are aware of the risks, uncertainties, and costs of continued
litigation and now desire to compromise and settle all matters currently in dispute between them.
Il.
The terms of this Agreement are as follows:
1. Upon final approval of this Agreement by the Round Rock City Council, and
subject to complying with all applicable building codes, regulations, and ordinances except as
necessary to implement the terms of this Agreement, Plaintiffs shall be entitled to erect one
illuminated 14' by 48' double-faced legal Non -Conforming Use Billboard, with a height not to
exceed that established by the Texas Department of Transportation in Title 43, Part 1, Chapter
21, Subchapter I, §21.158, Texas Administrative Code, at 2960 Jazz Street, Round Rock, Texas.
The faces on the billboard shall be oriented to be viewed from State Highway 45. Conditioned
upon and subject to Plaintiffs' complying with the aforesaid ordinances and requirements, Round
Rock shall grant the permits or applications necessary to construct and operate this Billboard.
2. Upon final approval of this Agreement by the Round Rock City Council, and
subject to complying with all applicable building codes and ordinances except as necessary to
implement the terms of this Agreement, Plaintiffs shall be entitled to erect one illuminated 14' by
48' double-faced legal Non -Conforming Use Billboard, with a height not to exceed that
established by the Texas Department of Transportation in Title 43, Part 1, Chapter 21,
Subchapter I, §21.158, Texas Administrative Code, at 3125 Louis Henna Blvd. (State Highway
2
45), Rock, Texas. Conditioned upon and subject to Plaintiffs' complying with the aforesaid
ordinances and requirements, Round Rock shall grant the permits or applications necessary to
construct and operate this billboard.
3. Plaintiffs agree that they will not allow the advertisement of any sexually oriented
business on either of the Billboards as that term is defined by Round Rock's ordinances. The
Parties agree that the actual damages that might be sustained by Round Rock by reason of the
breach by Plaintiffs of the aforesaid covenant are uncertain and would be difficult of
ascertainment, and that the sum of $500.00 for each day that the breach continues would be
reasonable compensation for such breach. Plaintiffs hereby promise to pay and Round Rock
hereby agrees to accept, such sum as liquidated damages, and not as a penalty, in the event of
such breach. Prior to initiating any legal action to enforce this covenant, Round Rock agrees that
it will provide Plaintiffs with written notice of any alleged violations of this covenant, after
which Plaintiffs shall have ten days to cure such alleged violation.
4. Plaintiffs agree that they will not be entitled to erect any other non -conforming
signs or billboards within Round Rock's jurisdiction.
5. Within five days upon final approval of this Agreement by the parties, in Cause
No. 97-414-0277 Plaintiffs agree to file a motion to dismiss with prejudice.
III.
The parties acknowledge the adequacy of consideration as expressed by the recitations
and mutual covenants in this Agreement.
3
IV.
In consideration of the mutual promises and covenants contained in this Agreement, the
parties hereby fully release, acquit, and discharge one another (including their agents, officials,
employees, representatives, attorneys, and insurers) from any and all claims, liabilities, causes of
action or damages, whether known or unknown, arising out of or made the basis of the above -
referenced disputes and litigation.
V.
The Plaintiffs hereby each jointly and separately represent and warrant that:
1. They each thoroughly understand the terms of this Agreement and have received
the advice from their counsel regarding the terms and consequences of this Agreement;
2. They each enter into this Agreement knowingly, freely and voluntarily;
3. They each understand and agree that this Agreement contains everything they will
ever receive from Round Rock pertaining to the aforementioned disputes and litigation between
the parties;
4. Except for the promises contained in this Agreement, no representations regarding
this Agreement or promises made by Round Rock, or any agent, attorney, or representative of
Round Rock regarding this Agreement, has influenced them in entering into this Agreement;
5. They each fully understand and agree that the two legal Non -Conforming Use
Billboards allowed to be erected under the terms of this Agreement will be considered as non-
conforming uses under Round Rock's ordinances and state law;
4
6. They have not assigned or conveyed any interest in the claims that have or could
have been asserted in the above -referenced lawsuits or the claims that are released in this
Agreement; and
7. They are the sole owner of any released causes of action and that no third party
has any interest in said claims.
VI.
This Agreement is made in settlement of disputed claims and causes of action, and the
provisions in this Agreement are not to be construed as an admission of liability by any party,
which liability is hereby denied. Further, the parties agree that nothing in this Agreement shall
be construed as a waiver of Round Rock's ordinances, rules, regulations, or other laws except as
necessary to implement the terms of this Agreement.
VII.
Each party shall bear its own attorney's fees and costs of court.
VIII.
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective representatives, officials, agents, employees, successors and assigns.
IX.
In the event any litigation is initiated after the date of this Agreement to construe and/or
enforce this Agreement or any term hereof or in connection with any alleged breach of this
Agreement, any prevailing party shall be entitled to recover all costs of litigation, including
reasonable attorney's fees, expert fees, court costs, and expenses from and against any non -
5
prevailing party. Further, mandatory venue for such litigation shall be in Williamson County,
Texas.
X.
Unless the basis of the bargain among the Parties hereto is destroyed or rendered
ineffective by invalidity or unenforceability of any provision hereof, if any provision of this
Agreement should be held to be void or unenforceable in any respect, then the remaining portions
of this Agreement shall remain in full force and effect.
XI.
The Parties and their respective attorneys participated in the drafting and preparation of
this Agreement. Therefore, this Agreement will not be construed in favor of or against any party
on the basis that such party did or did not author this Agreement.
XII.
Plaintiffs have represented they have acquired lease options on the billboard sites
described in this Agreement and are in the process of seeking the necessary permits from the
Texas Department of Transportation. In the event the lease options are terminated by the lessors
prior to the date when the billboards are erected or if the Texas Department of Transportation
refuses to permit the proposed billboards, the Parties agree to use their good faith best efforts to
secure a similar alternate site or sites which are mutually acceptable to the Parties.
6
XIII.
This Agreement contains the entire agreement between the Parties and supersedes all
prior agreements, understandings, or proposals, whether written or oral, relating to the above -
referenced disputes and lawsuit.
EXECUTED on this ID day of August, 2006.
THE CITY 1 ROU 1 ;W EXAS
Bv:
ell, Mayor
BEFORE ME, a Notary Public, on this day personally appeared Nyle Maxwell, Mayor the
City of Round Rock, Texas, known to me to be the person whose name is subscribed to the
foregoing instrument and who, being duly sworn, did state and acknowledge to me on his oath
that he has read and executed this SETTLEMENT AGREEMENT for the purposes and
consideration therein expressed.
Given under my hand and seal of office this 15 day of August, 2006.
EXECUTED on this 5 day of August, 2006.
7
Public for t e State of Texas
MICHAEL MASON WEAVER
Notary Public, State of Texas
RA, Commission Expires
January 31. 2010
RICHARD WALLACE PEARCE
BEFORE ME, a Notary Public, on this day personally appeared Richard Wallace Pearce,
known to me to be the person whose name is subscribed to the foregoing instrument and who,
being duly sworn, did state and acknowledge to me on his oath that he has read and executed this
SETTLEMENT AGREEMENT for the purposes and consideration therein expressed.
Given under my hand and seal of office this t7 day of July, 2006.
BETH A. REYNOLDS
Notary Public. State of Texas
My Commission Expires
July 30, 2007
Notary Public for the State
EXECUTED on this7.7 day of July, 2006.
Texas
RAY BLANN
BEFORE ME, a Notary Public, on this day personally appeared Jesse Ray Blann, known
to me to be the person whose name is subscribed to the foregoing instrument and who, being
duly sworn, did state and acknowledge to me on his oath that he has read and executed this
SETTLEMENT AGREEMENT for the purposes and consideration therein expressed.
Given under my hand and seal of office this 2.7 day of July, 2006.
BETH A. REYNOLDS
Notary Public, State of Texas
My Commission Expires
July 30, 2007
Notary Public for the Sta
END OF AGREEMENT
8
f Texas