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HomeMy WebLinkAboutResolution 2005-016 RESOLUTION NO. 2005-16 A RESOLUTION OF THE CITY OF NORTH RICHLAND HILLS REGARDING APPROVAL OF SETTLEMENT. WHEREAS, there is currently pending in the 48th District Court of Tarrant County, Texas, Cause No. 48-197154-03, styled Pat Hughes v. City of North Richland Hills; and WHEREAS, the City Council desires to approve a Compromise and Settlement Agreement ("Agreement") which is attached hereto and made a part of by reference and to take all other actions contemplated by or required to carry out such Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section I: THAT the Compromise and Settlement Agreement attached hereto and made a part hereof by reference is hereby approved. Section 2: The City of North Richland Hills hereby waives any claim of governmental immunity it may have to the enforcement of such Agreement, including enforcement of the promissory note referred to therein. Section 3: The City Manager is authorized to sign all settlement documents necessary to carry out the Agreement and to pay all sums required thereby. Section 4: The budget of the City of North Richland Hills is hereby amended by appropriating from the fund balance account the amount required to be paid under the Agreement during the current budget year. AND IT IS SO RESOLVED Passed on the 28th day of February, 2005. By: Resolution No. 2005-16 Page 1 of 2 ATTEST: APPROVED AS TO CONTENT: Resolution No. 2005-16 Page 2 of 2 SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Settlement Agreement and Release of Claims ("Agreement") is entered into between Patrick Hughes and Valerie Hughes ("Hughes") and the City of North Richland Hills, Texas (hereinafter referred to as the "City") constitutes the full and complete tenns of their agreement, and supersedes any and all other oral or written agreements which the parties may have made concerning this same subj ect matter. WHEREAS, Patrick Hughes, has filed suit in the District Court of Tarrant County, Texas, 48th Judicial District, Cause No. 48-197154-03, styled Hughes v. City of North Rich/and Hills, (the "Civil Action") for age discrimination and retaliation; WHEREAS, the City appeared and filed their Answer, denying all allegations made by Hughes in the Civil Action; WHEREAS bona fide disputes and controversies exist regarding the allegations and claims in the Civil Action; and WHEREAS, by reason of such disputes and controversies, the parties desire to settle all issues of any nature whatsoever between them since the beginning of time to the date of this Agreement. NOW, THEREFORE, in consideration of the following tenns, covenants, and conditions, Patrick and Valerie Hughes and the City agree as follows: 1. Settlement Payment. Upon the execution of this Agreement, the City shall pay to Patrick Hughes and his attorneys a total settlement lump sum of one million three hundred thousand dollars ($1,300,000.00). The settlement payments will be paid as follows: On March 14,2005, the City shall pay its first payment of six hundred and fifty thousand dollars ($650,000.00), from which Hughes' attorneys, The Medlenka Law Finn and Foreman, Lewis, and Hutchison, P.C., will receive a check in the amount of five hundred and fifty thousand dollars ($550,000.00), while Patrick Hughes receives a check made payable to him for the remaining sum of one hundred thousand dollars ($100,000.00). On or before December 1, 2005, the City shall pay the remaining settlement sum of six hundred and fifty thousand dollars ($650,000.00), which will be made payable to Patrick Hughes. The City will not withhold taxes from any payments under this Agreement, and will issue a separate IRS fonn 1099 to Patrick Hughes for the amount paid to him and a separate IRS fonn 1099 to his attorneys, The Medlenka Law Finn (Tax J.D. No. 462-02-3693) and Foreman, Lewis, and Hutchison, PC (Tax J.D. No. 20-0932884) for the amounts paid to them. Patrick Hughes agrees to indemnify the City for any taxes due to the IRS, resulting from the payment ofthis settlement. SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE 1 OF6 ~ City Secretary Office ~ Official Record Copy 2. Promissory Note. The unpaid settlement sum of $650,000 will be evidenced by a promissory note for such amount without interest, if paid by December 1, 2005, and will be secured by a confession of judgment agreement. The Note will draw no interest, unless defaulted, at which time the interest shall be at 10% per year on all unpaid outstanding balances from March 14, 2005. All payments after default shall be applied first to interest and the balance of the payment to principal. 3. Payment of Costs. Each party will bear their own taxable court costs. However, on or before December 1, 2005, the City shall reimburse Patrick Hughes, nine thousand five hundred dollars ($9,500.00), as costs reimbursement. This reimbursement shall be paid as an additional amount to Patrick Hughes at the time the City pays Patrick Hughes the remaining settlement sum of $650,000, as set out above in Paragraph 1. 4. Confidentiality of Agreement. The parties and their attorneys agree that the Compromise and Settlement Agreement dated February 15, 2005, is not a public record and shall not be released to the news media or to any person other than the parties, their representatives, and council members unless and until approved by the council members. 5. Covenant of Non-Disparagement. Patrick and Valerie Hughes and their attorneys shall not make any statements or remarks disparaging the conduct or character of the City's current City Manager, Assistant City Managers, and Fire Chief. Likewise, the City's current City Manager, Assistant City Managers, and Fire Chief shall not make any statements or remarks disparaging the conduct or character of Patrick and/or Valerie Hughes to anyone who is not a city official or employee. 6. Applicable Law. This Agreement shall be governed by and construed according to the laws of the State of Texas. 7. Severability. In the event that one or more terms or provisions of this Agreement are found to be invalid or unenforceable for any reason or to any extent, each remaining term and provision shall continue to be valid and effective and shall be enforceable to the fullest extent permitted by law. 8. Release by Patrick and Valerie Hughes. FOR AND IN CONSIDERATION OF THE SETTLEMENT PAYMENTS BY THE CITY OF NORTH RICHLAND HILLS, TEXAS (THE "CITY"), PATRICK AND VALERIE HUGHES, ON THEIR BEHALF, THEIR HEIRS, EXECUTORS, SUCCESSORS AND ASSIGNS, HEREBY RELEASE AND FOREVER DISCHARGE THE CITY, ITS ELECTED AND APPOINTED OFFICIALS, AGENTS EMPLOYEES, OFFICERS, DIRECTORS, INSURERS, HEIRS, ASSIGNS, AND LEGAL REPRESENTATIVES FROM ANY AND ALL CLAIMS, DEMANDS, OBLIGATIONS, LOSSES, CAUSES OF ACTION, COSTS, EXPENSES, ATTORNEYS' FEES AND ALL LIABILITIES WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, FIXED OR CONTINGENT, WHICH PATRICK AND VALERIE HUGHES HAVE OR MAY SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE 2 OF 6 HAVE AGAINST ANY OF THEM FROM THE BEGINNING OF TIME UP TO AND INCLUDING THE DATE OF THE EXECUTION OF THIS AGREEMENT. THIS WAIVER INCLUDES BUT IS NOT LIMITED TO CLAIMS AT LAW OR EQUITY OR SOUNDING IN CONTRACT OR TORT ARISING UNDER FEDERAL, STATE, OR LOCAL LAWS. MOREOVER, PATRICK HUGHES WAIVES ALL RIGHTS TO REINSTATEMENT TO HIS EMPLOYMENT WITH THE CITY AND AGREES NOT TO SEEK EMPLOYMENT WITH THE CITY IN THE FUTURE. 9. Release by North Richland Hills. NORTH RICHLAND HILLS, TEXAS, ON ITS BEHALF, ITS REPRESENTATIVES, ELECTED OFFICIALS, SUCCESSORS AND ASSIGNS, AGREE TO RELEASE PATRICK HUGHES FROM ANY AND ALL CLAIMS, DEMANDS, OBLIGATIONS, LOSSES, CAUSES OF ACTION, COSTS, EXPENSES, ATTORNEYS' FEES AND ALL LIABILITIES WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, FIXED OR CONTINGENT, WHICH NORTH RICHLAND HILLS HAS OR MAY HAVE AGAINST HUGHES FROM THE BEGINNING OF TIME UP TO AND INCLUDING THE DATE OF THE EXECUTION OF THIS AGREEMENT. 10. Waiver of Immunity. The City agrees that the payments to be made as well as the promissory note and the confession of judgment provided in this Agreement resolve the Civil Action. The City agrees to waive its immunity from suit and immunity from liability with regard to this Agreement, the promissory note, and the confession of judgment. The City consents to suit by Patrick Hughes to enforce this Agreement, the promissory note and the confession of judgment. At closing, on or before March 14, 2005, the City will deliver a duly passed City Council resolution, waiving any claims of governmental immunity by the City as to the promissory note and confession of judgment, waiving both immunity from suit, as well as immunity from liability. 11. Resignation. On March 14, 2005, the City agrees to accept a letter in the fonn of Exhibit "A" which is attached hereto, as a resignation submitted by Patrick Hughes, and agrees to file it in his personnel file. 12. Letters. The City agrees to provide letters to the Texas Commission on Law Enforcement Standards and Education and to the Texas Commission on Fire Protection in the fonn attached as Exhibit "B" and Exhibit "C" on the City's letterhead. 13. Neutral Reference. All requests for infonnation or references made to the City of North Richland Hills regarding Patrick Hughes or his employment, the calls will be directed to the Human Resources Director. The Human Resources Director will advise the requestor only that Mr. Hughes worked for the City from 1976 to July 31, 2001, that his last position with the City was Assistant Chief, and that the City received his letter of resignation on March 14, 2005. SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE 3 OF 6 14. Reference Letter. On March 14,2005, the City will provide Hughes with the reference letter, in the form attached hereto as Exhibit "D" on the City's letterhead. 15. Non-Admission. This Agreement shall not in any way be construed as an admission by the City of any unlawful or wrongful acts whatsoever against Patrick Hughes. The City specifically disclaims any liability to or wrongful acts against Patrick Hughes. 16. Resolution of Civil Action. Plaintiff agrees to file a Motion to Dismiss with prejudice along with a proposed Final Order, in the Civil Action, requesting dismissal with prejudice of all claims asserted, or which could have been asserted, in the Civil Action. 17. Entire Agreement. The parties recognize and agree that this Agreement constitutes the entire Agreement between Patrick and Valerie Hughes and the City and that this Agreement supersedes any and all other oral or written agreements or understandings which the parties may have made concerning this same subject matter. 18. Non-Waiver. The waiver by a party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such other party. PATRICK AND VALERIE HUGHES CERTIFY THAT THEY HAVE FULLY READ, HAVE RECEIVED AN EXPLANATION OF, HAVE NEGOTIATED AND COMPLETELY UNDERSTAND THE PROVISIONS OF THIS AGREEMENT, THAT THEY HAVE BEEN GIVEN AN OPPORTUNITY TO REVIEW AND CONSIDER THE PROVISIONS OF THIS SETTLEMENT AGREEMENT AND RELEASE, AND THAT THEY ARE SIGNING FREELY AND VOLUNTARILY WITHOUT DURESS, COERCION OR UNDUE INFLUENCE. [signature pages follow] SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE40F6 PLEASE READ CAREFULLY AS THIS DOCUMENT INCLUDES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. CK HUGHES Date: VALERIE HUGHES 4~¿¿-Ø??~t)T°::Z/.~??;?- Date: ,-1/ /J /5 / SWORN TO AND SUBSCRIBED BEFORE ME, the undersigned authority, by Jþe said PAJU~illJGHES, to certify which, witnesses my hand and seal of office, this~day of ,2005. ~' ,11111111"""11, - ~ ~"... ~\O E. WI¿ IIII/. ~"'6~ ....... (4- ~ !~~~~*.{>J\y PUb¿0~\ NOTARY UBLIC, STATE OF TEXAS ::: : ~ ~ NAME' 7/,/ ª i i ~ MY CåMMISSION EXPIRES:! '!(WI£' ~ ~.~ .p.: § ~ .. ~Œ'OFØ .- ~ ~ ··.fXPIR'é.~.·· ~ ~ ....... ~ ""I/: 1.g..'¿Jf;ß """ 11111"" II \1\\'" SWORN TO AND SUBSCRIBED BEFORE ME, the undersigned authority, hy /1 said V AYffdE illJGHES, to certify which, witnesses my hand and seal of office, this 111 day of (,2005. ",,\\\IIIII/IIIII/: ~ ~ ~,,'\ ~\o E. WI¿ III/. ~'}.....s~ ....y.... (4- ~ ~~v .,~ >.~ Pub....~ ~ " f /~<'.J*ri>.'f \ NOTARY PUBLIC, STATE OF TEXAS == : : = NAME: 7/. /.- ~ \. ó'-4 ",-P l § MY COMMISSION EXPIRES: '(~(Uif{ ~ e.. .!£OF1£ ..- ~ ~ ·.fXPIR'é.<;' ..' ~ ~ ........ ~" ~.l11: 1.9-'2S$fJ ",.... 1IIIIIff.tHl\\"" SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE 5 OF6 THE CITY OF NORTH RICHLAND HILLS, TEXAS Lanyct~~ City Manager for the City North Richland Hills, Texas Date: 3r0 S- / SWORN TO AND SUBSCRIBED BEFORE ME, the undersigned authority, by Larry Cunningham, in his capacity as City Manager for the City of North Richland Hills, Texas, to certify which, witnesses my hand and seal of office, this 1 \ day ofMð-.V (.Ý) , 2005. ~\\\\\"n"'"",1. ~\\\\ ~\CHAð ~"'~ .:~ ,,1'1.. ......... r(ð~~ ~'v,r.. '{ P" v; ~ ~;; ...·;\~R lIb('" q¡\ ~~"'..P* 1:>", ~ :: :-.;;;;: ~ :: = : : = = : <%> : *== ~ *\ ~l; ~~ / i ~ ... ~ OF \ v...· § ~ .... J::\,;:. \Oc<::l ..' ~ ~ ..':~t-' f'~.. § ~... .¡O····..·~;.J.ê ~ """'" -19-~\\\.... 11""'1/ II \11"\\\\ åJJ'w ~--vA.oJ~ NOTARY PUBLIC, STATE OF TEXAS NAME: lö I I MY COMMISSION EXPIRES: Iq D <p SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS PAGE60F6