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HomeMy WebLinkAboutPR 11618: HEIL/FREIGHTLINERI N T E R OFFICE MEMO To: From: Subject: Date: Mayor, City Council & City Manager Mark T. Sokolow, City Attorney /td.e, P. R. No. 11618 Council Meeting - January 22, 2002 January 16, 2002 Attached is Proposed Resolution No. 11618 pertaining to thc authorization of the City Manager to execute the settlement of the City's subrogation claim in Cause No. E-159,760. I did make an amendment to this Resolution as to delete the exact amount of thc lien since it is fluctuating. This matter will be discussed in executive session. JSR/jb Attachment CC: VIA FACSIMILF. (713) 759-0616 Mr. Ronald G. Bankston BANKSTON & RILEY, L.L.P. VIA FACSIMILR (713) 650-1400 Lance Lubel ROBINS, CLOUD, GREENWOOD & LUBEL Harvey Robinson, Director of Human Resources Judith S. Rawls, First Assistant City Attorney z.prll618.memo P.R. No. 11618 01/16/02 jb AMENDED RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER 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 & FREIGHTLINER CORPORATION, ET AL. WHEREAS, City has Intervened in Cause No. E-159,760, Albert Frank and Bridget Frank v. Thc Hcil Cbmpany, ct al, in the 172nd 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 arc representing thc interests of thc City of Port Arthur, as well as thc Plaintiffs, in this matter; and WHEREAS, Mr. Bankston's office has informed thc City that a confidential settlement has been reached in this litigation; and WHEREAS, the City's licn at thc time of settlement is approximately $100,000; and WHEREAS, pursuant to thc Rule 11 Agreement which is attached hereto as Exhibit A, thc City will recover its lien minus attorney's fees of one third. WHEREAS, an estimate of thc net amount to be recovered is approximately z.prll618 $70,884. 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. Section 2. That the City Manager is authorized to do all things necessary to execute the settlement of the City's subrogation claim and to accept payment of the lien that is reimbursable under State law less the one third attorney's fees in settlement of the City's subrogation claim against The Hell Company and Freightliner Corporation, et al in this litigation. Section 3. The net amount received by Mr. Frank will be used as a credit against future 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 City Attorney's office, in substantially the same form as Exhibit B. Section 5. That a copy of the 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 Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council z.prll618 NOES: ATTEST: OSCAR ORTIZ, MAYOR CAROLYN DIXON, CITY SECRETARY APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER z.prll618 EXHIBIT "A" ALBERT FRANK~AND'.:. ., BRIDGET FRANK · · . VS. TI4E HEIL CO~A~ I~ A~'! :05 CAUSE NO. E-159,760 IN THE DISTRICT COURT OF JEFFERSON COUNTY, TEXAS 172 Nn JUDICIAL DISTRICT '. '-:--" RULE II AGREEMENT The City of'Pb'~ Art~fi'r.-a ~d counse for Albert Frank and Bridget Frank, whici nsel are Mr. Ronald Bankston and Mr. Lance Lubel, in Cause No. E-159,760 in the 172"'~ JudiCial District Court, Jefferson County, Texas agree to tile 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~a 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- 159,760. Counsel for Albert Frank, Ronald Bankston & Lance Lube[ hereinafter referred to as Plaintiffs' counsel, agree to represedt, the City in Cause No. E-159,760. Pursuant to Section 4 17.00.~(b) of the Texas Labor Code, Plaintiffs' counsel represents to tile City that the necessary consent of the Plaintiffs have been obtained. The City and Plaintiffs' counsel agree that Plaintiffs' counsel will receive collectively a 1/3 contingency fee of the City's total recovery on all ofthe 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. PlaintifiV counsel and the City agree that the I/3 contingency fee will be all inclusive, so that the City will not be charged for any costs or expenses. The 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 1/3 fee will be apportioned between Mr. Bankston and Mr. Lubel. Signed and agreed to tbis ~ day of Oc~o[:'~°/''' , 2000. Signed and agreed to this 90FRANK.PLEAD Mark Sokolow City Attorney on behalf of City of Port Arthur -Y""'/day of.~4.~._. ,2000. W6nhld Bankston Lance Lubel - Signed and agreed Ito Ibis ~__~___day or~<_2000' Albert Frank, Plaintiff' Signed and agreed 'o tills ___~_day ot'.~,(,~_,~O00. 90FRANK. PLEAD EXHIBIT "B" THE STATE OF ~ COUNI'~ OF.JEFFERSON I~NO~TAr r ~ BYTI~I~ T~t I, thc undccs~-mcd, ~ duly ,urAo~zc~l ~p~sc~t~ai~e of~ CI~ OF PORT FO~ D~G~, ~d ~ ~ p~ do for ~d ~ ~of ~e ~, ~ ~ ~d ~, ~ ACQU~ ~d FO~ D~C~GE ~ K F~, Ba-~ ~ ~es, ~;;~s ~d ~ o~ ~ ~ oz ' ~v~ ,~c ~ ~ 0~. i~ ~ ~m~ ~ or ~% for o~ ~ ,~t of a~ut ~te~ 26, 1996, ~d ~e ~ ~ prat ~.~ ~. ~d~ ~cfi~ w~ o~ Ck~' of Po~ ~u~ Rck-,~ b~ Fu~ 44~ The City h~s ~ ~ ~moum~ in be~efit~ on ~ ~h~l~ ~e ~~ ~fi~ h ~ by ~d~of~~~e~~ ~t ~ ~ ~ or ~& ~t ~ ~ to ~e ~ ~ of &e ~j~ ~ by As ~ of ~ c~id~d~ for ~e ~y~t of ~e ~ove ~ ofm~. I, for ~d ~ ~ of · e ~, ~ ~ ~d ~, ~e ~ to md do ~d ~ of ~c p~ h~ td~ ~om ~y ~d ~ c~xs, ~n&, a~s and o~ of ~fl of ~e ~ ~ ~ ~t ~e G~ ~ not t~ mdtled w x~zlve from the City. EXECUTED in mulfple ofi~nals this . . chyof ,2002- THE CITF OF PORT ARTHUR By. Its Duly Kuthorize~l ~,ent ~ d ~ A~%r R~k'~e la Full: THE ffrATE OF 'l'E~dkS COUNTY OFJEI'~,SON BEFORE ~ thc , duly authorized agent and representative of THE CITY OF PORT ARTHUR. -lmoxvn to me to be the person who~e wine is subse_nq~l to the'' f~regoi_qg ix~t~,rnemt, and icleno~tledgcd t~ me that (he, ~hc) iz authori=ex.t to cxecute thc foregoing on behalf of THE CITY OF PORT ARTHUR. ~ad that (he, she) executcd thc same for the ~ and consideration therein expressed and in the cap~city therein ,rated. GIVEN UNDER my h~ncl at~d ~ealof offi~ thls dayof ,2002. Noraxy Public in and for The S~te of Texas AI~ R. F~ 3 Ci~ of ~ A.-.th~ Release 1~ Fulk 44.~.9