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HomeMy WebLinkAboutARCH INSURANCE COMPANY INSURANCE NOT REQUIRED A-2025-115 WORK f�P+Y P'ROCUD GITY CLERK DATE: JUL 16 2025 D:LA D(fF) Kvit Neitax-/ SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS This Settlement Agreement and Release of All Claims (hereinafter "Agreement") is made and entered into on this 16th day of July, 2025, by and between ARCH INSURANCE COMPANY(hereinafter "Plaintiff"), and the CITY OF SANTA ANA (hereafter"Defendant"). WITNESSETH: WHEREAS, Plaintiff filed an action against Defendant in the Superior Court of the State California, County of Orange, Central Justice Center known as ARCH INSURANCE COMPANY v. CITY OF SANTAANA, Case No. 30-2024-01436141-CU-BC-CJC (the"Action"). WHEREAS, Plaintiff and Defendant (collectively, the "Parties"), desire to settle fully and finally all differences between them, including, but in no way limited to, those differences described above. NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, and to avoid unnecessary litigation, it is hereby agreed by and between the Parties as follows: 1. This Agreement and compliance with it shall not be construed as an admission by Defendant of any liability whatsoever, or as an admission by Defendant of any violation of the rights of Plaintiff or any person, violation of any order, law, statute, duty, or contract whatsoever against Plaintiff or any person. Defendant specifically disclaims any liability to Plaintiff or any other person for any alleged violation of the rights of Plaintiff or any person,or for any alleged violation of any order, law, statute, duty, or contract on the part of any employees or agents of Defendant. Likewise, this Agreement and compliance with it shall not be construed as an admission by Plaintiff of any liability, misconduct, or wrongdoing whatsoever. 2. Each party will exchange a fully signed executed copy or original of this Agreement. Defendant cannot process payment without a fully executed copy of the Agreement from Plaintiff. 3. Following receipt of, or in exchange for, an executed copy of a Request for Dismissal form from Plaintiff dismissing the Action with prejudice, Defendant will make available a check in the amount of Three Hundred Forty Thousand dollars and no cents ($340,000) made payable "ARCH INSURANCE COMPANY". This amount represents a full and complete settlement of Plaintiffs claims for all damages alleged in the Action. Plaintiff will file the Request for Dismissal following Plaintiff's receipt and confirmation of the settlement check. Plaintiff agrees that this Agreement constitutes full and complete settlement of all claims made against Defendant in this Action. Plaintiff will not seek any further compensation for any other claimed damages, costs, or attorney's fees in connection with the matters encompassed in this Agreement. a. Plaintiff shall provide Defendant with a fully executed copy of this Agreement on or before July 16, 2025. b. Defendant shall deliver the settlement check, described above,to Plaintiff on or before July 31, 2025. The check shall be delivered to: Page 1 of 4 Watt, Tieder, Hoffer&Fitzgerald,LLP Attention: Christopher Bunge 4 Park Plaza, Ste. 1000 Irvine, CA 92614 4. Plaintiff acknowledges and agrees that Defendant has made no representations regarding the tax consequences of any amounts received pursuant to this Agreement. Plaintiff agrees that they are liable for all taxes, if any, which are owed by her on any amount received hereunder including interest and penalties. Plaintiff will hold Defendant harmless from any and all claims made by federal, state, or local taxing authorities regarding amounts owed by Plaintiff, 5. Plaintiff represents that, with the exception of this Action and the government tort claim associated therewith and submitted to the City of Santa Ana, Plaintiff has not fled any complaints, claims, or actions against Defendant including any of its officers, agents, directors, supervisors, employees, or representatives of Defendant with any state, federal, or local agency or court and that they will not do so at any time hereafter as it relates to this Action and that if any agency or court assumes jurisdiction of any complaint, claim, or action against Defendant on Plaintiff's behalf, Plaintiff will direct that agency or court to withdraw and dismiss the matter with prejudice. 6. The parties hereto hereby agree that all rights under Section 1542 of the Civil Code of the State of California are hereby waived. Civil Code Section 1542 provides as follows: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party." 7. Notwithstanding the provisions of Civil Code section 1542, each party hereby irrevocably and unconditionally releases and forever discharges each other party and each and all of its officers, agents, directors, supervisors, employees, representatives, and its successors and assigns and all persons acting by,through, under, or in concert with each other party from any and all charges,complaints,claims,and liabilities of any kind or nature whatsoever,known or unknown, suspected or unsuspected(hereinafter referred to as"claim"or"claims")which each releasing party at any time heretofore had or claimed to have or which each releasing party at any time hereafter may have or claim to have, incidental to the incident(s)which form the basis of the Action. S. Each person signing below represents that he/she has reviewed all aspects of this Agreement,that the Agreement has been carefully read and fully explained to them and that they understand every provision of this Agreement, that they understand that in agreeing to this document they are releasing each party hereby from any and all claims they may have against each party released, that they voluntarily agree to all the terms set forth in this Agreement, that they knowingly and willingly intend to be legally bound by the same, that they were given the opportunity to consider the terms of this Agreement and had the opportunity to discuss this Agreement with legal counsel. Each party hereby warrants they have the authority to enter into this Agreement and bind the party for whose benefit they execute this Agreement. i Page 2 of 4 9. The Parties represent and acknowledge that in executing this Agreement they do not rely and have not relied upon any representation or statement made by another party or by anotherparties' agents,attorneys,or representatives with regard to the subject matter,basis, or effect of this Agreement or otherwise, other than those specifically stated in this Agreement. 10. This Agreement shall be binding upon the Parties upon their heirs, administrators, representatives, executors, predecessors, successors, and assigns, and shall inure to the benefit of said parties and each of them and to their heirs, administrators, representatives, executors, predecessors, successors, and assigns. 11. Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid, or unenforceable, the legality, validity, and enforceability of the remaining parts, terms, or provisions shall not be affected thereby, and said illegal, unenforceable, or invalid part, term, or provision shall be deemed not to be a part of this Agreement. 12. This Agreement sets forth the entire agreement between the Parties and fully supersedes any and all prior agreements or understandings, written or oral, between the Parties pertaining to the Action or any related issue. 13. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any of the parties hereto. 14. This Agreement may be executed in counterparts, secured via e-mail, facsimile transmission or otherwise, each of which shall be deemed to be an original. Photocopies of any executed counterpart shall have the same force and effect as an original. PARTIES: Plaintiff Arch Insuraugg Company 56ed v Gera t,�c� Dated:717/25 By: Susan Weinstock Title: Assistant vice President [CONTINUED TO NEXT PAGE] Page 3 of 4 Defendant CITY OF SANTA ANA, a charter law city and municipal corporation,duly organized and existing under the Constitution and laws of the State of California Dated: 15 1� 4- By: Alvaro Nunez, City Manager CITY OF SANTA ANA, a charter law city and municipal ATTEST: corporation, duly organized and existing under the Constitution an laws the St o H ornia ( By. Dated: f� l S *d nnife d all i Clerk APPROVED AS TO FORM: WATT,TIEDER,HOFFAR& FITZGERALD,LLP July 7, 2025 Dated: CHRI R B-�UNGE Attorneys for Plaintiff Arch Insurance SONIA R. CARVALHO City Attorney City of Santa Ana Dated: July I6, 2025 � E NELLESEN ssistant City Attorney Attorneys for Defendant Page 4 of 4