HomeMy WebLinkAboutV (C) Approval and Authorization to File a Declaratoy Judgement Action Against FPC Requessting the Court to Declare the Rights and Obligations of FPC Agenda 5-20-2003
Item V C
FOLEY : LARDNER
ATTORNEYS AT LAW
I11 NORTH ORANGE AVENUE,SUITE 1800
ORLANDO.FLORIDA 3 2 8 01-2 3 86
P.O.BOX 2193
ORLANDO.FLORIDA 32802-2193
TELEPHONE:4074237656
FACSIMILE:407 648.1743
NMNV.FOLEYLARDNER COM
MEMORANDUM
CL!EN!MATTER NUMBER
020377/069a
TO: The IIonorable Mayor and City
Commissioners
FROM: John P. Horan, Assistant City Attorney
CC: Paul E. Rosenthal, City Attorney
James P. Gleason, City Manager
David A. Wheeler, Director of Public Works
DATE: May 13, 2003
RE: Maguire Road Improvements Segment One and Two—Suit Filed by Ryan
Incorporated Eastern
As you were first advised in July 2002, the Contractor on this project, Ryan
Incorporated Eastern ("Ryan"), submitted several claims for additional compensation to the City
of the Ocoee (the "City"). These claims were submitted to several sessions of mediation but
were not resolved. In January 2003, Ryan sued the City seeking an unspecified amount of
damages. In accordance with the applicable Florida Rules of Civil Procedure, Ryan recently
provided notice that it wanted the court to set the case for trial.
In the last written submission of Ryan's claims to the City, it appeared that the
majority of the damages Ryan was seeking were attributed by Ryan to have been caused by
Florida Power Corporation ("FPC"). We have served FPC with demands for indemnification
and a defense concerning these claims but FPC has refused those demands, maintaining that its
obligation to indemnify and defend the City has not been triggered by the allegations in the
lawsuit filed by Ryan.
FPC's indemnification obligations to the City arise out of certain agreements, the
legal effect of which the parties dispute. In order to proceed with greater certainty in the lawsuit
FOLEY P.LARDNER
006.295889.
FOLEY : LARDNER
against Ryan, it would be beneficial to the City to have the court adjudicate FPC's and the City's
rights and obligations under the applicable agreements.
Accordingly, we recommend that the City authorize the filing of a declaratory
judgment action against FPC requesting the Court to declare the rights and obligations of FPC to
indemnify and defend the City concerning the claims of Ryan.
If you have any questions concerning this matter or the ongoing proceedings,
please contact John Horan directly at(407) 244-3265.
JPHO:bp
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006.295889.