Resolution 3710 - Accepting an Offer of SettlementE
RESOLUTION N0. 3710
A RESOLUTION ACCEPTING AN OFFER OF SETTLEMENT PRESENTED BY THTRD
PARTY DEFENDANTS IN S & S CANOPIES & CAMPERS, MFG. vs. CITY OF
KALISPELL, ET AL, Flathead County Cause No.. CV-7 -429.
WHEREAS, on the 21st day of August, 1979, certain persons residing
within Flathead County and near the site of the City of Kalispell's
Wastewater Treatment Plant, filed a lawsuit (captioned S & S Canopies
& Campers, Mfg, v. City of Kalispell, Cause No. CV-79-429) alleging
that the City's Wastewater Treatment Plant had been designed, constructed
and operated in such a manner as to produce and emit disagreeable,
offensive and nauseating odors and requesting damages both special
and general from the City; and
WHEREAS, the City of Kalispell filed on the 30th day of November,
1979, an Answer, Demand for Jury Trial, and Third Party Complaint, in
response to said suit and named as Third Party Defendants Morrison-
Maierle, Inc., Magney Construction Company, and BIF, a unit of General
Signal Corporation and requested that the City be compensated for
damages for indemnification, breach of warranty, fraudulent misrepresen-
tation and negligence, and
WHEREAS, in the intervening years since 1979 the City and the
Third Party Defendants have been engaged in protracted discovery and
procedure and the City has felt compelled to expend City revenues in
an attempt to successfully prosecute its claim against the Third
Party Defendants, and
WHEREAS, on the 20th day of April, 1984, the City of Kalispell and
the Plaintiff entered into a Stipulation of Dismissal with Prejudice
and evidencing satisfaction of all Plaintiff's claims against the
City, and
WHEREAS, on the 3rd and 4th of December, 1986, counsel representing
the City of Kalispell and all Third Party Defendants met at the City
Hall, City of Kalispell, Montana, with the objective being the settlement
of said suit in a manner which would be agreeable to all parties, and
WHEREAS, as a result of said meeting the Third Party Defendants,
by and through their lead counsel, Cresap S. McCracken, have offered
to the City of Kalispell a settlement figure of Four Hundred Thousand
Dollars ($400,000.00) payable over three (3) years as follows: at
closing--$125,000.00; on the first anniversary of closing--$90,000.00;
on the second anniversary of closing--$90,000.00; and on the third
anniversary of closing--$95,000.00, and
WHEREAS, the City Council of the City of Kalispell, acting upon
advice of its counsel, reviewed the offer presented by the Third
Party Defendants.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF COUNCIL OF THE CITY
OF KALISPELL AS FOLLOWS:
SECTION I. That the offer to settle the above cited cause
for an aggregate amount of $400,000.00 payable as follows:
at closing- -$125,000.00; on the first anniversary of closing--
$90,000.00; on the second anniversary of closing--$90,000.00;
and on the third anniversary of closing--$95,000.00, is hereby
accepted.
SECTION II. That the Mayor, City Clerk -Treasurer, and City
Attorney are hereby authorized and directed to make and/or
execute all necessary documents relating to settling the
above cited cause and are authorized to accept payment in
behalf of the City of Kalispell and stipulate to appropriate
dismissal.
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS 22nd
DAY OF DECEMBER, 1986.
I, the undersigned, E "Kenneyy r. , Ma or
Cithe City of KaTispell, certi y that the
ATTEST:., foregoing is a true oapy of the Resolution passed by the City Council of the
ity of Kalispell at a regular meeting held
City Clerk -Treasurer.
y e i y a ispe ,Montana