Loading...
Resolution 80-16263 RESOLUTION NO, 80-16263 A RESOLUTION AUTHORIZING FINAL SETTLEMENT OF CIRCUIT COURT CASE NO. 78-963. WHEREAS, for the reasons more particularly set forth in Commission Memorandum No. .?f the City Commission of the City of Miami Beach finds it in the best interest of said City to enter into a final settlement of Circuit Court Case No. 78-963 between the City of Miami Beach, Fidelity & Deposit Co. of Maryland, Sam Clark & Assoc. , Inc. , Sam W. Clark and Mary Clark; and WHEREAS, the City Attorney recommends settlement of said litigation on the terms contained in said Commission Memorandum; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Attorney is hereby authorized to enter into a final settlement agreement for and on behalf of the City of Miami Beach, accepting $112 , 500 from Fidelity & Deposit Co. of Maryland; BE IT FURTHER RESOLVED that there is hereby appropriated from said settlement funds of $112 , 500, the sum of $25, 000 to be paid to Sam Clark & Associates, Inc. and that special counsel fees and costs of the City of Miami Beach in an amount up to a maximum of $35, 000 are hereby appropriated from said settlement funds to the Office of the City Attorney for payment of same. PASSED and ADOPTED this 23rd day of April , 1980 . w--- Mayor Attest: (SEAL) City Cl r k ABG/rr OFFICE OF THE CITY ATTORNEY - 1700 CONVENTION CENTER DRIVE -MIAMI BEACH, FLORIDA 33139 15I81 efLA , fi O R I Q A JOHN A. RITTER �' TELEPHONE .673-7170 z�^may CITY ATTORNEY c`cH COMMISSION MEMORANDUM NO. 5M1 DATE: APRIL 23 , 1980 TO: Mayor Murray Meyerson and Members of the City Commission City Manager Harold T. Toal FROM: John A. Ritter (—)1L, City Attorney �> SUBJECT: RECOMMENDED SETTLEMENT OF CIRCUIT COURT CASE NO. 78-963 , FIDELITY & DEPOSIT CO. OF MARYLAND vs . CITY OF MIAMI BEACH, SAM CLARK & ASSOCIATES, INC. , MISSISSIPPI VALLEY EQUIPMENT CO. (BRIDGE OVER COLLINS CANAL) DISCUSSION: The City is scheduled to begin a major one week jury trial this afternoon at 1: 00P.m. unless it approves a settlement offer which the City Attorney recommends . In the settlement the City would net 52 500 from $112 , 500 paid by the bonding company , after paying and $25, 000 to settle a crossclaimapproximately $7 , 000 in costs and s28 000 in fees to special counsel . If the City goes to trial $28, 000 it � judgmentand loses, cou�d s�:ffer a of $215 , 000 r plus fees and costs; if it wins the City could obtain $300 , 000 judgment. This office and special counsel in the case recommend this settlement because the City ' s main witness , the consulting engineer on this project,'ect Herbert Saffir , gave testimony at deposition that seriously weakened the City' s case and will make it difficult to convince k Y a jury that the City was correct in its actions . The suit arose as follows : In early 1976, the City of Miami Beach awarded to Sam Clark & Assoc . , Inc. a contract in the amount of approximately $371 , 000 for the con- struction of the proposed Bridge Over Collins Canal at Prairie Avenue . Fidelity & Deposit Co. of Maryland was the Surety, providing the con- tract bond on thisJ ro ' ect. The bridge was designed by Herbert Saffir, P Professional Engineer, under a contract with the City of Miami Beach. During the construction of the Bridge Over Collins Canal , several disputes arose between the City of Miami Beach and the Contractor. The Contractor failed to complete the project and walked off the job in December 1976 . The City ultimately rebid the project, which was . completed byAtlantic Foundations , Inc . , at a cost of $624 , 000 . The P Surety failed to complete the project or pay the City under the con- tract bond, claiming that the Contractor was justified in walking off the job, and filed a Declaratory Judgment Action in the Circuit. Court in January of 1978 . The City counterclaimed against the Surety on the bond and crossclaimed against the Contractor for breach of con- tract. The Contractor crossclaimed against the City for breach of contract„ RECOMMENDATION: As a result of the foregoing, and in comparing the potential recovery against the potential loss , it is strongly urged by this office that the City accept the compromise settlement outlined above which we believe to be a good one in view of the present status of the case. Should the City Commission reject this settlement proposal, it should be noted that this case may go to trial as early as this afternoon. ORIGINAL RESOLUTION NO. 80-16263 (Authorizing final settlement of Circuit Court Case No. 78-963) (i)K-006- o v Co cu s CArkr4,4) O� o Cn (r uO SUTTToD 1aAo aBpTaq) (896--8L# asu0 qarnop TZnoin Jo quamaTqqas Teuz j 2uzzz1oua.n1-) 8, 9T-08 'ON_ 1\10=110SM' 0 9 r 9 i rIVNI0IU0