AgreementANTHONY KARPAWICH, KENT
KARPAWICH, AND LISA KARPAWICH,
as assignee for K.T.K.L. CORPORATION, a
dissolved Florida Corporation,
Plaintiff,
vs.
THE CITY OF MIAMI BEACH., a
Municipal corporation,
Defendant.
IN THE. CIRCUIT COURT QF THE
1 ITH JUDICIAL CIRCUIT IN AND FOR
MIAMI-DADE COUNTY, FLORIDA
GENERAL JURISDICTION DIVISION
CASE NO. 97-2687 CA (03)
SETTLEMENT AGREEMENT
In consideration of the promises, covenants and conditions contained herein,
ANTHONY ICkRPAWICH, KENT KARPAWICH, AND LISA KARPAWICH, as assignees
for K.'r.K.L. CORPORATION, (collectively, "KTKL") a dissolved Florida Corporation, and
THE,' CITY OF MIAMI BEACH ("CITY") agree as follows:
1. Background. On or about July 10, 1999, KTKL and the City uxecuted a
memorandum agreement in which the parties settled the instant litigation ("the Memorandum
Agreement"). On June 29, 2007, KTKL filed a motion to enforce the Memorandum Agreement.
The motion claimed that KTKL had not been paid amounts due for the years 2002, 2003, 2004,
2005, and 2006 under paragraph 6 of the Memorandum Agreement. Pursuant to negotiations
between KTKL and the City, the issues raised in KTKL's motion to enforce have been amicably
resolved.
2. Amounts claimed throuvh December 31, 2008. KTKL and the City ag*rec that
the City shall pay to KTKL, the sum of five hundred ninety five thousand dollars ($595,000) in
full satisfaction of all amounts claimed as due and owing under the above referenced
Memorandum Agreement through December 31, 2008, including attorneys fees, costs and
prejudgment interest through thc execution of this settlement agreement,
3. Additional terms:
a) KTKL and the City agree to be bound by the terms set forth in this agreement subject
only to the approval of the Miami Beach City Commission. Both sides agree that this settlement
agreement will be scheduled on the Commission's agenda for a hearing scheduled for
September 15, 2010, and that the City Attorney, Jose Smith, will recommend acceptance of this
settlement agreement to the Commission. The Payment of five hundred ninety five thousand
dollars ($595,000) shall be made within twenty (20) days of thc execution of the Resolution
authorizing this settlement and shall be made payable to Ellsworth Law Firin, P.A., Trust
Account in trust for Anthony Karpawich, Kent Karpawich, and Lisa Karpawich. KTKL shall
withdraw its motion to enforce within five (5) days of receipt of the money.
b) KTKL and the City agree that the evidentiary hearing presently scheduled before the
Honorable Magistrate Judge Elizabeth Schwabadissen on September 8, 2010, shall be
continued until October 20, 2010, and heard at that time only if the Commission rejects the
terms of this settlement agreement or if the City has not paid the amount owed pursuant to
Section 3a of this settlement agreement.
c) KTKL and the City agree that if the Commission rejects this agreement, KTICL will be
free to pursue its full claim for damages, attorney foes, costs, and prejudg hent interest - as
provided by the Memorandum Agreement - through the conclusion of this Iitigation.
d) Scan Ellsworth, counscl for KTKL, will submit an affidavit in support of KTKL's claim
for attorneys fees and costs through August 6, 2010. The affidavit will identify the tot&
amount of attorney's fees to date, the lawyers involved, and their respective hourly rates.
e) KTKL and the City agree to waive any right to appeal any aspect of the withdrawn
motion to enforce,
4. Future payments: KTKL and thc City agree to delete Paragraph 6 of the
Memorandum Agreement and replace it with the following provision:
a) Beginning with calendar year 2009, and continuing thereafter through October 31, 2032,
the City shall pay to KTKL the fixed sum of ninety thousand dollars ($90,000) per calendar
year (and a pro rated amount for the final year). The payments will increase at a rate of 3% per
year through October 31, 2032, and are set forth on the attached amortization schedule. KTKL
aeknowledges receipt of thc City's payments of $28,000 in 2009, and $14,000 in 2010, and
agrees that these amounts will be set off against the amount due in 2009, reducing the amount
due for 2009 to $48,000, which amount will also be paid within twenty (20) days of the
execution of the Resolution authorizing this settlement.
h) The City will pay KTKL $92,700 for the calendar year 2010 on January 10, 2011, or the
next business day should January 10 fall on a Saturday, Sunday or holiday. Thereafter,
payments consistent with the attached amortization schedule will be made on January 10 for
every calendar year through 2032.
5. Alternative Disnute Resolution. KTKL and the City agree that before either
side moves to enforce the terms of this settlement agreement, the party moving to enforce shall
first serve a Notice of Intent to Move to Enforce on the opposing party. Within thirty (30) days
of SerViCe of the Notice on the opposing party, the parties will jointly select a certified
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mediator, schedule and conduct a mediation to try to resolve the dispute. The cost of the
mediator will be shared equally by the partics. The parties may, by stipulation extend the. time
necessary to conduct the mediation.
6. Releases. Except for the obligations of this Agreement, which are not hereby
released and which shall survive the execution hereof, KTKL, Kent Karpawieh, Lisa
Karpawieh, and Anthony Karpawich, for themselves and for their respective successors and
assigns, hereby rernise, release, acquit, waive, satisfy and forever discharge the City, its
officers, directors, shareholders, members, employees, agents, servants, representatives and
insurers, and the respective personal representatives, heirs, successors and assigns of all of
them, of and from all, and all manner of action and actions, cause and causes of action, suits,
debts, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, guarantees, warranties (whether express or implied, and
whether based on statute, common law or otherwise), third-paity claims, bad faith claims,
variances, trespasses, damages, judgments, executions, claims and demands whatsoever, which
either has or may have against the other, whether arising in tort, by contract, by virtue of
statute, Or otherwise, and whether in law or in equity, regardless of whether the same are
known or unknown, suspected or unsuspected, patent or latent, or have yet accrued or not
accrued, provided the same arise from Paragraph 6 of the Memorandum Agreement as
originally drafted or amounts due under this Settlement Agreement through and including
December 31,2008,
7. Notices. Notices to be given pursuant to this Agreement must be in writing, and
shall be deemed delivered if delivcrod by hand -delivery, U.S. Mail, or by overnight delivery.
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Such notices shall be delivered to the following addresses, which any party rnay change by
giving notice to the other parties by the means set forth herein.
.Ef to KTKL, such notices shall be sent to:
if to the City:
Sean. M. Ellsworth, Esq.
1501 Collins Avenue, Suite 208
Miami Beach, FL 33139
and
Kent Karp aw1ch
34 West San Marino Drive
Miami Beach, FL 33139
Jorge M. Gonzalez
City Manager, City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
and
Jose Smith
City Attorney
Office of the City Attorney
1700 Convention Center Drive
Miami Beach, FL 33139
8) Due Dates Falling on Weekends or Holidays. In the. event that the date of any
act required to be performed by this Agreement (including, but not limited to, the payment of
any money) falls on a weekend or a federal holiday, then the same shall not be required to be
performed until the next bu.sincss day thereafter.
9) Modification of Agreement. This Agreement may not be amended or modified
except by written instrument signed by all of the parties hereto, and the parties agree that this
provision may not be waived except in writing.
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10) everbPty. If any provision of this Agreement shall be held by a court of
competent jurisdiction to be illegal, invalid or unenforceable for any reason, whether on its face
or as applied, the remaining provisions shall remain in full force and effect.
11) "Reservatign of Jurisdiction. The parties shall request the Court to retain
jurisdiction to enforce the terms of this Agreement.
IN WITNESS WHEREOF, the parties have ex.ecuted this Agreement on this day
of September, 2010.
)3Y:
ANTHON
KENT
SY-
L
AWIH
ARPAWI
BY: '/AUG?.✓ 1
FOR: K.T.K,L, CO1'ORATIO
By:=�C.,v� vU J
Sean M. Ellsworth, Esq,
Attorney for Plaintiffs
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IN WITNESS WHEREOF, the parties have executed this Agreement on this iff day
of September, 2010.
CITY OF MIAMI BEACH
P9770272y1
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KTKL/City of Miami Beach Settlement Agreement
Payment Schedule
Year Amount Due 1
2009 48,000,00
2010 92,700.00 January 10, 2011
201.1 95,481,00 January 10, 2012
2012 98,345.43 January 10, 2013
2013 101,295.79 January 10, 2014
2014 104,334.67 January 10, 2015
2015 107,464,71 January 10 201.6
2016 110,688,65 January 10, 2017
2017 114,009,31 January 10, 2018
2018 117,429.59 January 10, 2019
2019 120,952.47 January 10, 2020
2020 124,581.05 January 10,2021
2.021 128,318.48 January 10, 2022
2022 132,168.03 January 10, 2023
2023 136,133.08 I January 10, 2024
2024 140,217.07 January 10, 2025
2025 144,423,58 January 10, 2026
2026 148,756.29 ! January 10, 2027
2027 153,218.98 1 January 10, 2028
2028 157,8I5.54 January 10, 2029
2029 162,550.01 January 10, 2030
2030 167,426.51 January 10, 2031
2031 172,449.31 January 10, 2032
2032 148,018.99 January 10, 2033
Due Date