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HomeMy WebLinkAboutCC RESO 15,135RESOLUTION NO. 15,135 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH ARTHUR L. CARVER, BRUCE A. CARVER, SUSAN E. CARVER, AND RANDALL B. CARVER BE IT RESOLVED by the City Council of the City of National City that the City Manager is authorized to execute an agreement between the City of National City and Arthur R. Carver, Bruce A. Carver, Susan E. Carver, and Randall B. Carver. A copy of said agreement is attached hereto as Exhibit "A" and incorporated herein by reference. PASSED and ADOPTED this 25th day of November, 1986. orge H. waters, Mayor At .LEST: C / ,(7 Ion, Campbell, City Cle APPROVED AS TO FORM; George H. Eiser, III -City Attorney AGREEMENT This Agreement is made and entered into between the CITY OF NATIONAL CITY, hereinafter referred to as "CITY," and ARTHUR L. CARVER, BRUCE A. CARVER, SUSAN E. CARVER and RANDALL B. CARVER, hereinafter referred to as "CARVERS." This Agreement is made with reference to the following recitals: A. On May 17, 1982, a judgment was entered in San Diego Superior Court, Action no. 427262, in favor of CITY against the Carver Corporation and American Fidelity Fire Insurance Company in the sum of $98,180.16, plus interest, and for costs in the sum of $1,078.44. The Carver Corporation appealed from said judgment, and in order to stay execution of the judgment pending appeal, undertakings were filed by CARVERS, as sureties. Said undertakings provide that CARVERS will pay the amount directed to be paid by the judgment appealed from, and that if CARVERS do not make such payment within 30 days from the filing of the remittitur, on motion of CITY, judgment may be entered in favor of CITY against CARVERS. B. The appeal of the Carver Corporation was dismissed on April 22, 1983, and a remittitur filed in the Superior Court on -1- EXHIBIT "A" June 22, 1983. The judgment was not paid within 30 days of the filing of the remittitur in Superior Court. On May 29, 1986, CITY filed a motion for judgment against surety on undertaking, which motion was amended on June 10, 1986. Pursuant to said amended motion, CITY sought to have the judgment in action no. 427262 entered against CARVERS, pursuant to the undertaking. C. CARVERS are not presently able to pay the total amount of the judgment in action no. 427262, and have represented to CITY that they would be compelled to initiate bankruptcy proceedings if CITY's motion were granted. In order to satisfy the judgment and reach a full and final settlement of all matters pertaining to action no. 427262, CITY and CARVERS have mutually agreed that CARVERS shall pay the judgment in installments as set forth hereinbelow. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, CITY and CARVERS agree as follows: 1. Beginning on December 1, 1986, CARVERS shall pay to CITY 108 equal payments of $1,500.54 on the first day of each month, for a total of $162,058.38. In consideration for said payments, CITY releases and discharges CARVERS from all undertakings, claims, demands, obligations or causes of action arising out of action no. 427262. This release applies only to CARVERS, and CITY expressly reserves any and all causes of action that it has against any other party to action no. 427262. ,CARVERS shall be given credit against the amount to be paid by them pursuant to this Agreement for any amounts recovered by CITY -2- from any other defendant in action no. 427262 or action no. 510842 which is also pending in the San Diego Superior Court. 2. This Agreement shall become immediately null and void, the obligations from which CARVERS are being released shall become enforceable by CITY, and CARVERS expressly waive any .applicable statute of limitations which may apply to enforcement of said obligations by CITY, upon the occurrence of any of the following: (a) Discovery that any misrepresentation was made by any party in connection with the making of this Agreement. (b) Failure of CARVERS to make any payment when due, if said failure is not remedied within 15 days after CITY gives written notice of default to CARVERS. Notice of default will be deemed given two days after it is deposited in the United States mail, first class postage prepaid, addressed to: Arthur L. Carver 1528 Pioneer Way El Cajon, California 92020 with a copy to: Thomas C. Nelson, Esq. McDonald, Hecht & Solberg 600 "B" Street, Suite 1100 San Diego, California 92101 In the event this Agreement is voided under this section, CARVERS shall be entitled to a credit against any amounts claimed by CITY for all payments made by CARVERS pursuant to this Agreement. 3. This Agreement shall bind and inure to the benefit of the parties and their heirs, legal representatives and assigns, -3- e • provided that this Agreement shall not be assigned by either party without the mutual consent of the parties hereto. DATED: CITY OF NATIONAL CITY DATED: DATED: /00/g6 DATED: ' %/e/ f DATED: By Tom G. McCabe, City Manager L. CARVER a A. CARVER AN E. CAR R cLcc/C2Y RANDALL B. -4- CARVER