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Home My WebLink About(1) PR 11618 HEIL/FREIGHTLINERI N T E R OFFICE MEMO To: From: Subject: Date: Mayor, City Council & City Manager Mark T. Sokolow, City Attorney P. R. No. 11618 Council Meeting - February 5, 2002 January 31, 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. I did make an amendment to this Resolution as to delete thc exact amount of the lien since it is fluctuating. This matter will be discussed in executive session. MTS/ts Attachment CC: VIA FACSIMtt, E (713) 759-0616 ~. Ronald G. Bankston BANKSTON & RILEY, L.L.P. VIA FACSIMILE (713) 650-1400 Lance Lubel ROBINS, CLOUD, GREENWOOD & LUBEL Harvey Robinson, Director of Human Resources Judith S. Rawls, First Assistant City Attorney z.pr11618.memo P.R. No. 11618 01/31/02 ts 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. The Hell Company, et al, in the 172na 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. Lubcl are representing the interests of the 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 reimbursable lien at the time of settlement is approximately $100,000 to $107,000; 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. WHEREAS, an estimate of the net amount to be recovered is approximately z.pr11618.2.amended $67,000 to $71,000. 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 thc lien that is reimbursable under Stare law less thc one third attorney's fees in settlement of the City's subrogation claim against The Hcil Company and Frcightliner 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, Mr. Bankston and Mr. Lubel are authorized to execute the settlement documents, releases and other documents, subject to approval by thc City Attorney, as to finalize the settlement, which includes but is not limited to, a release 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 thc City Council of thc City of Port Arthur, Texas, z.pr11618.2.amended by the following vote: AYES: Mayor ., City Council 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.pr11618.2.amended EXHIBIT "A" CAUSE NO. E-159.760 ALBERT FRANK. AND.:. BRIDGET FRAMK · - .. · , · THE rIEIL CO/V~A~ ~ APcl :05 IN THE DISTRICT COURT OF JEFFERSON COUNTY, TEXAS 172 ~) JUDICIAL DISTRICT · /";' :" ' RULE II AGREEMENT The City ofP0'h ~a~'6~'-a.~.douns¢1 tbr A~be~ Frank and Bridget Frank, ~vhicl~¢~nsel are Mr. Ronald Bankston and ~r. Lance Lubel. in Cause No. E- I $9,760 in the 172"a Judi~ia'l District Court, Jefferson County, Texas agree to the following: Thc City herein agrees to ~llow tile 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 ofthe City's liens, including all worker s eompensauon liens which consist of weekly benefits, disability benefits, and medi~l benefits paid by or to be paid by tl~e City in any way arising from the facts of Cause No. E- 159,760. Counsel for Albert Frank, Ronald Bankston & Lance L~bel, hereinafter referred to as Plaintiffs' counsel, agree to represent the City in Cause No. E-I$9J60. Pursuant to Section 417.003(b) of the Texas Labor Code~ Plaintiffs' counsel represents to the City that the necessary Consent of 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 h~ve or will arise from the facts of Cause No. E-159,760. Plaintifi~' counsel and tile City agree that the 1/3 contingency fee will be all in¢lusive~ so that the City will not be charged for any costs or expenses. The total amount to be paid to PlainUffs' ¢ounse 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 _ -~ day of Oc~,~,,o/~ , 2000· Signed and agreed to this Mark Sokolow City Attorney on behalf of City of Port Arthur day of,- ...~_" ~'/ Y · ,2000. R~ou~,ld Bankston 90FRANK.PLEAD Signed and agreed 'o fl, is ~"~' da' oF/~-'~"- / ------- ~ ~:w~----- .2000. Lance Lubel -- Signed and agreed ~o Ibis ._~ Signed and agreed lo lhis _day of~,~2000. Lday 90FRANK.PLEAD EXHIBIT "B" THE STATE OF TE.XAS COUNTY OFJEFFE2~ON KNO~ a~r ~. MEN BY' THESE PR ~-;ENTS: I. rh~ undets/gu~d, a dui), authorized r~r,~n~iv¢ of THE CITY OF PORT ARTHUR ¢'Th¢ City"), /n consid~tioa of the sum of SEVENTY THOUSAND, EIGHT HUNDR~_F) FIFtY-FOUR AND 49/100 DOrXARS ($74,854.49) l~d by ,-~/n behalf o£ &e p~des ~ ~ rect2p¢ of ~a/ch/s ha. eby ~-knowlcdgcd --d ~ have RF3PASED, ACQUIlq~D md FOREVER DISCHARGED, ,ad by these presents do for ,nd/n ~of the C/q. ks succ~s,o~ .nd ~s/gr/s, R~-r-E. ASE. ACQUIT and FOR.E%~ DISCHARGE Albcr~ lC F.~['. Banksroa Riley LLP. Ronald O. B~ton, Robins. Cloud, Greenwood & Lull, ~-ce Lube], Be~ckenste~a & Oxford, LLP., Hubert Ox:ford 1~, James La~fitc:r, "~:te H~il Compatty, Fr~ighttiaer Corporation, ~td ~h~ir sub'da~.,fies, ~ F~l;-tes and all oth~ persons, fi,-~ or coq~x~ions who might b~ liable flora any ,-d all claim~, dermaads ~nd ~us~ of acdon of whatsocv~ muare, ~t~tu~, at co~on law or ~cluit~bl~, wl~h~ in contract or in t0rg for pe.r~a~l injur~ md p~ &'~oge, which barve ~cctu~ or n~ ever accr~ to th~ City, its ~ ~mdv~s, succ~.ssot~ or gssign~, for or o~a ~ccount of on-th~job injuries susrain~ by Albert IL Frunk in ~o. acx:ide~lt w]~ch occu~ecl ~nJle worldng for The City on or about September 26, 1996, ~u~d the payme~ tyast, pre~mt ~na future, of inde~mity benefits, weekly bea~f~s, disability behests, knFairmex~ts b~nc~rs ..A medical ext~ms~ to or on b~.half of Alb~t K Fr~k b~ the City, wheda~r pursuant to the T~ras Wo~5¢~' Comtx-nsation Act, a polic~ ofi~anc~ or otherwis~ ~a~ IL Frank TI~¢ City I~s expencled cex~n ~mmmt~ ia ~e~ ~ ~ ~t to ~ ~ F~ ~ As ~ of~ c~id~d~ for &e ~y~t of &e ~ove m ofm~, I, for md ~ behal~ of ~d ~ of&c p~ h~ rd~ ~om ~y ~nd ~ c~xs, d~n&, a~s and m~ of~n of ~ ~d~ 417.~2 ~) ~ (c), T~ ~or CMe, to m~t &e n~ ~t achy ~v~M by ~ EX~ m muZffl~l¢ ori~nals tt~ cb.y of TI-I~ GITY OF PORT B~ Irs Duty .~ur~tlz~i Agent .~ ~ F~, 2 C~y o~el~ A~r Re~c~,e In Foil: 44~69 'rile STATE OF TEXAS COUNTY OF JEleI-~.RSON · duly authorized agent and telatesentatlve of ~ CITY OF PORT ARTHUR. -known to me to be the person whose name is subscn~oed to the'' ~regoing instrument, and ~¢knowlcdgcx:l to me that (he, ~hc) i~ authorized to execute fla¢ fore'going on behalf of 'I'HE ~ OF PORT aKRTHUI~ and that (he, she) executed thc same for thc ~ and coru~idexation therein exprezsed ~ in the capacity theo~in zcateck GIVEN UNDER my g?-4 and ami of office, flfi~ day of Notax3r Public in a~d for The State of Texas