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
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O R I Q A
JOHN A. RITTER �' TELEPHONE .673-7170
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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
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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)
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