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Home My WebLink AboutPR 11618 HEIL/FREIGHTLINER CORPI N T E R OFFICE MEMO To: From: Subicct: Date: Mayor, City Council & City Manager Sokolow, City Attorney ~ Mark T. Judith S. Rawls, First Assistant City Attorncyff*-' P. R. No. 11618 Council Meeting- January 8, 2002 January 4, 2002 Attached is Proposed Resolution No. 11618 pertaining to the authorization of the City Manager to execute the settlement of the City's subrogation claim in Cause No. E-159,760. JSR/jb Attachment CC: VIA FACSI2141LE (713) 759-0616 Mr. Ronald G. Bankston BANKSTON & RILEY, L.L.P. VIA FACSIMILF, (713) 650-1400 Lance Lubcl ROBINS, CLOUD, GREENWOOD & LUBEL Harvey Robimon Director of Human Resources z.prll618.memo P.R. No. 11618 12/27/01 jb A RESOLUTION AUTHORIZING THE CITY MANAGEK TO DO ALL THINGS NECESSARY TO EXECUTE THE SETTLEMENT OF THE CITY'S SUBROGATION CLAIM IN CAUSE NO. E-159,760 MADE AGAINST THE HEIL COMPANY & FREIGHTLINEK CORPORATION, ET AL. WHEREAS, City has Intervened in Cause No. E-159,760, Albert Frank and Bridget Frank v. Thc Hcil Company, ct al, in the 172''a Judicial District Court, Jefferson County, Texas for recovery of its worker's compensation liens; and WHEREAS, pursuant to Resolution 00-246, Mr. Bankston and Mr. Lubel are representing the interests of thc City of Port Arthur, as well as the Plaintiffs, in this matter; and WHEREAS, Mr. Bankston's office has informed the City that a confidential settlement has been reached in this litigation; and WHEREAS, the City's lien at thc time of settlement totaled $106,281.74; and WHEREAS, pursuant to the Rule 11 Agreement which is attached hereto as Exhibit A, the City will recover its lien minus attorney's fees of one third. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. z.prll618 Section 2. That the City Manager is authorized to do all things necessary to execute thc settlement of thc Cit3~s subrogation claim and to accept $70,854.49 ($106,281.74 lien less thc one third attorney's fees per thc Rule 11 Agreement attached hereto) in settlement of the City's subrogation claim against the Thc Heil Company and Freighfliner Corporation, et al in this litigation. Section 3. The net amount received by Mr. Frank will be used as a credit against futurc Worker's Compensation expenses, if any, as provided by Section 417.002(c) Labor Code V.T.C.A. Section 4. That the City Manager is authorized to execute a release, subject to approval by the Cie), Attorney's office, in substantially the same form as Exhibit B. Section 5. That a copy of thc caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of , A.D., 2002, at a Rcgular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council NOES: z.prll618 ATFEST: OSCAR ORTIZ, MAYOR CAROLYN DIXON, CITY SECRETARY APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY jU~.~V~H S. RAWLS, FIRST ASSISTANT CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, C1TY MANAGER z.prll618 EXHIBIT "A" CAUSE NO. E-159,760 ALBERT FRANK. AND..:. ':, * BRIDGET FRAMK ' :, ' · VS. IN THE DISTRICT COURT OF JEFFERSON COUNTY, TEXAS 172 Nn JUDICIAL DISTRICT · '~: /. ' RULE II AGREEMENT .- . ..~ ;.- The Ctty of Port Ar~'tiur--an~t cot nsel for Albert Frank and Bridget Frank, which cc[unsel are Mr. Ronald Bankston and Mr. Lance Lubel, in Cause No. E- 159,760 in the 172"a JudiCial District Court, Jefferson County, Texas agree to the following: The City herein agrees to allow the above-referenced counsel for the Plaintiffs, Albert Frank and Bridget Frank, to represent the City's interest in Cause No. E-159,760 in the 172'~ Judicial District Court, Jefferson County, Texas. The City's interest is the recovery of all of the City's liens, including all worker's compensation liens which consist of weekly benefits, disability benefits, and medical benefits paid by or to be paid by the City in any way arising from the facts of Cause No. E- l 59,760. Counsel for Albert Frank, Ronald Bankston & Lance Lubel, hereinafter referred to as Plaintiffs' counsel, agree to represent the City in Cause No. E-159,760. Pursuant to Section 417.003(b) of the Texas Labor Code, Plaintiffs' counsel represents to the City that the necessary consent o£the Plaintiffs have been obtained. The City and Plaintiffs' counsel agree that Plaintiffs' counsel will receive collectively a I/3 contingency fee of the City's total recovery on all of the City's liens, including worker's compensation liens, that in any way have or will arise from the facts of Cause No. E-159,760. Plaintiffs' counsel and the City agree that the ~/3 contingency fee will be all inclusive, so that the City will not be charged for any costs or expenses· Tile total amount to be paid to Plaintiffs' counsel will be one third of the total recovery on all of the City's liens. Plaintiffs' counsel agrees to work out between themselves how their I/3 fee will be apportioned between Mr. Bankston and Mr. Lubel. Signed and agreed to this -I~ day of Oc'toba/'" , 2000. Signed and agreed to this __ Mark Sokolow City Attorney on behalf of City of Port Arthur jd,~"/day of~,,/~/~,~...~- - ,2000. R~onhld Bankston 90FRANK.PLEAD Signed and agreed to this 2000. Lance Lubel Signed and agreed to this Signed and agreed to this ~/ day o f ~f~(,j~,n/~,.c-2000. Albert Frank, Plaintiff / dayof Aj(J~'(/?~%2000. Bridget ~ahk, I~laintiff 90FRANK. PLEAD EXHIBIT "B" THE STATE OF TI~XAS COUNTY OF JEFFF__R. SON KNOW ~ r I. MEN BY THES]~ PRESF_/qTS: Ci~ of Po~ A~hat ~ I~ Fu& The City has exlgnde~l ~ muoum~ in b~nefits md m~ ~t to on ~ ~h.l~ ~e ffo~ ~~ ~ a~ by ~ ~d ~u~ ofa~ ~ ~ ~e ~ ~ ~ ~ of~ ~t ~ ~ ~ or ~& mi~t ~ ~ to ~e ~ ~ of &e ~ ~ by .. As ~ of ~ c~dmd~ for &e ~y~t of ~ ~ove m ofm~, I, for md N ~h.l¢ of ~ ~on ~ ~l.~g by. ~ ~ ~ ~ ~ ~ ~ A~ R. F~ p~or w &e &~ of ~g for ~m~ EXECUTED in m~lfiple originals ~ . , dayof ,200Z THE CITY OF PORT ARTHUR By lt~ Duly Authorized Agent 2 Full: 44~69 'I~IE STATE OF TEXAS ¢ OLq,,r~ OF JEFFERSON BEFORE ME, the · duly authorized agent and ~elm~entadve of THE CITY OF PORT ARTHUR, kno~a to me to be the person whose name is subscm'bed to the': f~tegoing inslxtm~nt, and acle~o~lcdgcd to me that (he, she) is authot~ed to execute the xeoxx~gomg em behalf of THE CITY' OF PORT ARTHUR, and that (he, she) executcd the samc for the purposes and comsidea:ation thexein expxessed ~ in the cal~ci~ thet~n seateck GIVEN' LrNDER my !~ ~,'1 ant1 seal or' orifice, thi~ dayof ,2002- No~t'y Public i~ and for The State of Tex~s Ci~. of po~ 2~thu~ I~:sse 1~ Fulk