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HomeMy WebLinkAbout1986-529 ;>J!lIIi .. , Pi_>\;_ .,~ .,~ .,,,'.. .f! 1 RESOLUTION NO. 86 'i?'l 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A MUTUAL RELEASE BETWEEN WESTERN EMPIRE SAVINGS 3 AND LOAN ASSOCIATION AND THE CITY OF SAN BERNARDINO. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 6 SECTION 1. The Mayor of the City of San Bernardino is 7 hereby authorized and directed to execute on behalf of said 8 City a Mutual Release with We.stern Empire Savings and Loan 9 Association releasing the parties from all rights, claims, 10 demands, obligations, debts, duties, liabilities, guarantees 11 or other causes of action relating to the lawsuit entitled 12 Western Empire Savings and Loan Association v. Dunn Delaware 13 Corporation, et. al. A copy of the Mutual Release is attached 14 hereto, marked Exhibit "A" and incorporated herein by 15 reference as fully as though set forth at length. 16 I HEREBY CERTIFY that the foregoing resolution was duly 17 adopted by the Mayor and Common Council of the City of San 18 Bernardino at all ",J:j()l1rnpn rpQ:"1"r meeting thereof, held on 19 the ??nn day of 20 to wit: np.("'~mhp.r , 1986, by the following vote, 21 22 23 24 25 26 27 28 AYES: Council Members R~illy M~rkq Fr~7;pr ~t-ri("'klp.r NAYS: l\Tf"'\nA ABSENT: rr"'lllnf"'i 1 Mpmhp.r~ F.aTr~n~ He.rn~nnA7 . . Qll;p.l ~d~ -City CI€1:k 12/19/86 1 , . , 1 2 3 4 5 6 7 8 9 10 11 12 13 " 14 15 16' 17 18 19 20 21 22' 23 24 25, 26 27 28 The foregoing resolution is hereby approved this .-<:'f/60 day of December , 1986. Approved as to form: ;:~~ jjll~~ cIty At orn'ey 12/19/86 2 . . . . MUTUAL RELEASE THIS AGREEMENT (hereinafter the "Agreement") is made this 19~~ day of December, 1986, between Western Empire Savings and Loan Association ("Western Empire") and the City of San Bernardino ("City"). Recitals 1. Western Empire has filed a lawsuit against the City, and certain other Defendants, in the Orange County Superior Court, Case No. 47 86 92 (herein sometimes referred to as the "Lawsuit"). 2. Western Empire, Plaintiff in the Lawsuit, has in good faith asserted certain claims and contentions therein, which the City disputes and denies. 3. Western Empire has entered into a settlement of the Lawsuit with all of the other Defendants, which settlement includes dismissals with prejudice of the Lawsuit as to said Defendants. 4. Based upon Western Empire's settlement with the other parties to the Lawsuit, and upon assurances by the City's Attorney's office that this Release would be recommended to the City for approval, Western Empire has also caused to be filed a Request for Dismissal of the Lawsuit as to the City. -1- . . 5. Pursuant to negotiations between Western Empire and the City, and to eliminate the possibility of further litigation between them concerning the sUbject matter of the Lawsuit, with all of its attendant costs and expenses, Western Empire and the City now desire to release one another from all claims in connection with the Lawsuit, and the sUbject matter thereof, upon the terms and conditions hereinafter set forth. NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING FACTS, Western Empire's dismissal of the Lawsuit, and the mutual promises set forth herein, and contingent upon the full and faithful performance thereof, Western Empire and the City hereby agree as follows: Aqreements 1. Incorporation of Recitals. The recitals set forth above are incorporated herein by this reference. -2- . . which against them Western Empire or the City may now have, claim to have, hereafter have, or hereafter claim to have, arising out of, based upon, or which directly or indirectly relate to, the subject of the Lawsuit, the Lawsuit itself, or the filing or prosecution thereof. 3. Admissions. The releases set forth herein are the result of a compromise of disputed claims and neither the releases, nor any provision of this Agreement, shall be deemed to be an admission of the truth of the allegations, claims, or contentions of any party relating directly or indirectly to the Lawsuit. 4. Section 1542 Waiver. It is understood and agreed that the foregoing release includes all claims of every nature and kind whatsoever, known or unknown, suspected or unsuspected, asserted in the Lawsuit or arising in connection with the subject of said Lawsuit. All rights under Section 1542 of the Civil Code of California with respect to the matters released by this agreement are hereby expressly waived. Section 1542 provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of ex~cuting a release, which, if known by him, must have materially affected his settlement with the debtor." -3- 5. Change in Facts. Western Empire and the City each acknowledges and agrees it may hereafter discover facts different from or in addition to those it now knows or believes to be true with respect to the above Lawsuit, and agrees that this Agreement and the releases contained herein shall be and remain effective in all respects, notwithstanding such different or additional facts or the discovery thereof. 6. Survival of Riqhts Hereunder. Notwithstanding the releases contained herein, all rights and obligations created under and pursuant to this Agreement shall survive the execution of this Agreement and the releases contained herein. 7. Representations and Warranties. Western Empire and the City each represents and warrants that: (a) It has received independent legal advice from attorneys of its own choice regarding this Agreement, or waived the right to receive such advice: (b) It has made such investigation of the facts pertaining to this Agreement as it deems necessary: (c) It has read this Agreement and signed it of its own free will: and (d) It has taken all corporate action necessary for approval of this Agreement. -4- '. 8. Representations and Warranties Re Assignment. Western Empire and the City each represents and warrants that it has not heretofore assigned, or transferred, or purported to assign or transfer, to any person, firm or entity whatsoever, any of the matters released hereunder. 9. Attorneys' Fees. If any action is commenced between Western Empire and the City in connection with the enforcement of any provisions of this Agreement, the prevailing party shall be entitled to reasonable costs and expenses, including attorneys' -'/ fees. 10. Further Instruments. Western Empire and the City shall, from time to time, execute and deliver such further instruments as may reasonably be required to effectuate the intent of this Agreement. 11. Successors and Assigns. All of the terms of this Agreement shall be binding upon and inure to the benefit of and be enforceable by each of the parties released and their respective employees, agents, officers, directors, shareholders, transferees, predecessors, successors, subsidiaries, parents, affiliates, attorneys, and/or aSSigns, and all persons claiming by or through them. 12. Notices. Any notice required or desired to be given under this Agreement shall be personally served or shall be sent -5- , by certified mail to the appropriate address shown below, until notice of a different address is given. Any notice given by depositing it with the United States Postal Department as certified mail, postage prepaid, return receipt requested, shall be deemed given 24 hours after deposit. Western Empire: WESTERN EMPIFE SAVINGS AND LOAN ASSOCIATION 17951 Cowan Street Irvine, California 92714 With a copy to: Frandzel & Share A Law Corporation 18300 Von Karman Avenue, Suite 320 Irvine, California 92715 Attention: Michael R. Pfeifer, Esq. City: THE CITY OF SAN BERNARDINO City Clerk's Office 300 N. "0" Street, 2nd Floor San Bernardino, California 92418 With a copy to: Deputy City Attorney City of San Bernardino 300 N. "0" Street, Room 6678 San Bernardino, California 92418 Attention: Cynthia Grace, Esq. 13. Entire Agreement. This Agreement contains the entire understanding of the parties. Each party agrees that this Agreement is being executed without reliance upon any other statements or representations, whether written, oral or otherwise, by the persons, parties or entities released, or their agents, attorneys or representatives, or any other person whomsoever. -6- 14. Modifications. No modification of, deletion from, or addition to this Agreement shall be effective unless in writing and executed by both the City and Western Empire. 15. Severability. In the event any clause, sentence, term or provision of this Agreement shall be held by the court of any competent jurisdiction to be illegal, invalid or unenforceable for any reason, the remaining portions of this Agreement shall remain in full force and effect. 16. California Law. This Agreement and its application shall be governed by the laws of the State of California. 17. Captions. The captions of the paragraphs of this Agreement are solely for the convenience of the undersigned, are not part of this Agreement, and shall not be used for the interpretation of any provision of this Agreement. 18. Authority to Execute. Each individual executing this Agreement on behalf of any of the undersigned hereby represents and warrants that he or she has been fully empowered to execute this Agreement, and that all necessary action and II II II II II II -7- L--____._.___ obtained. approvals for the execution of this Agreement have been taken and Dated: December~, 1986 Dated: December c:l~ , 1986 BY: BY: APPROVED AS TO FORM AND CONTENT: Dated: .g~~u:~ .J~ Dated: D-eGe...lscr 67600-029 0202P II.( , 1981 7 11 ,19M'" BY: By: WESTERN EMPIRE SAVINGS AND LOAN A SOCIATION A Ca ornia corporation Its CITY OF SAN BERNARDINO A California municipality Its FRANDZEL & SHARE A Law Corporation MICHAEL GERARD FLETCHER MICHAEL R. PFEIFER ~I~ Attorneys for Plaintiff Western Empire Savings and Loan Association CITY ATTORNEYS OFFICE City of San Bernardino ~~"v &v~.. CYNTHIA GRACE Deputy City Attorney -8- 1 2 3 4 5 6 7 8 9 10 11 12 w w " 13 a: i ;::: c W N ~> co %_c cO cn;zoiS 14 45ii::ta:" . 0.. .J1IC~1II!!:'" 15 LIIO ~..I" NUz5c_ Q~O"'U! ~> .". Z g w- 16 Cc ~ II: " > II. ! ! 17 18 19 20 21 22 23 24 25 26 27 28 ~. FRANDZEL & SHARE A Law Corporation 18300 Von Karmen Avenue Suite 320 Irvine, California 92715 (714) 476-3020 cC Attorneys for Plaintiff WESTERN EMPIRE SAVINGS AND LOAN ASSOCIATION SUPERIOR COURT OF CALIFORNIA COUNTY OF ORANGE WESTERN EMPIRE SAVINGS AND ) LOAN ASSOCIATION, a California) corporation, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Plaintiff, vs. DUNN DELAWARE CORPORATION, a Delaware corporation; B & D VII, LTD., a California partnership; STAGHORN CORPORATION, a Nevada corporation; DUNOCO DEVELOPMENT CORPORATION, a California corporation; DUNOCO DEVELOPMENT CORPORATION, a Texas corporation; DUNCAL CORPORATION, a California corporation; LONNIE M. DUNN, JR., aka LONNIE M. DUNN, aka LONNIE M. DUNN, II, an individual; PACIFIC NATIONAL BANK, a banking association; THE CITY OF SAN BERNARDINO, a California municipality; and DOES 1 through 300, inclusive, Defendants. 1/ II -1- Case No. 47 86 92 STIPULATION FOR ORDER VACATING PRELIMINARY INJUNCTION, CANCELLING BOND, AND EXONERATING SURETY . . , 1 2 3 4 5 6 7 8 9 10 11 12 ~ W d 13 ~ i ~ c ~ m ~~~ cO ~~zoiS 14 e2=~E~ . OG ~c~~~~ 15 WO ~~. Uz5c_ S~~WU! z~o we 16 ceo ! ~ ~ > ~ ! ! 17 18 19 20 21 22 23 24 25 26 27 28 ~. ( TO: THIS HONORABLE COURT: The parties herein, by and through their respective counsel of record, hereby stipulate as follows: 1. On June 30, 1986, this Court, by the Honorable Harmon G. Scoville, Judge, issued a preliminary injunction against Defendants The City of San Bernardino, Dunn Delaware Corporation, B & D VII, Ltd., their agents, servants, employees, representatives, and all persons acting in concert or participation with them, from doing certain acts. A Bond was fixed in the amount of $10,000, and an Undertaking in that amount issued by Insurance Company of North America ("Surety") was posted by Western Empire. 2. The parties are in the process of consummating settlement agreements for final resolution of this case, and agreements have already been reached between some of the parties such that the need for the preliminary injunction has been eliminated. The parties therefore request that the Court enter its order vacating the above-referenced preliminary injunction forthwith without prejudice, cancel the above-referenced Bond, and II II II II II II -2- . . k <<~ 1 fully exonerate the Surety. 6 7 8 9 10 11 12 w . " II: ~;:: 13 <z~ :: %2<( cO u)=zoz~ 14 .,!;~a:f? La: O. ..J...~~ 15 WO~~...~ NUz3c_ otoUlUOlf z:5~ wE <(<0 Z 16 a: ~ > u. ! ! 17 18 19 20 21 22 23 24 25 26 27 28 2 3 4 Dated: 5 Dated: Dated: Dated: ;~76097'029 01871> . December ~, 1986 December ~, 1986 December ~, 1986 December ~ , 1986 -3- (( FRANDZEL & SHARE A Law Corporation MICHAEL GERARD FLETCHER MICHAEL R. PFEIFER BY:~ Attorneys for Plaintiff Western Empire Savings and Loan Association BUCHALTER, NEMER, FIELDS, CHRYSTIE & YOUNGER BY: NE GUERIN torneys for Pacific ational Bank FRIEDEMANN, STONE, LA SCALA, KETO & FUGAL BY, Kldfl1-JL OHN I Attorneys for Dunn Delaware Corporation, B & D VII, Ltd., Staghorn Corporation, Dunoco Development Corporation (California), Dunoco Development Corporation (Texas), Dunca1 Corporation, and Lonnie M. Dunn, Jr. ~ dk~ 5v~ CYNTHIA GRACF. Deputy City Attorney AttoTneys for The City of San Bernardino