HomeMy WebLinkAboutItem #06 Mercon Construction's Offer to Judgment/Proposal for Settlement SHUFFIELDLOWMAN
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ATTORNEYS AND ADVISORS
AGENDA ITEM COVER SHEET
Meeting Date: June 5, 2012
Item #
Reviewed By:
Contact Name: Scott A. Cookson, Department Director: Scott A. Cookson,
City Attorney City Attorney
Contact Number: 407 - 581 -9715 City Manager: Rob Frank
Subject: Mercon Construction's Offer of Judgment/Proposal for Settlement
Background Summary:
In the City's ongoing lawsuit with Mercon Construction Company ( "Mercon "), Mercon recently offered to settle the
litigation with the payment from Mercon to the City in the amount of $15,000. In the event the City Commission wishes
to accept the offer, or if one or more members of the City Commission desires to further discuss the offer, such
discussion would take place in a closed session of the City Commission on a date to be scheduled.
Issue:
Should the City Commission reject the settlement offer from Mercon in the amount of $15,000?
Recommendations
Both the City Attorney and the City Manager recommend rejection of the $15,000 settlement offer.
Attachments:
Defendants' Offer of Judgment/Proposal for Settlement
Financial Impact:
$15,000 of income to the City in exchange of release of claim for up to $
Type of Item:
❑ Public Hearing For Clerk's Dept Use:
❑ Ordinance First Reading [x] Consent Agenda
❑ Ordinance First Reading ❑ Public Hearing
❑ Resolution ❑ Regular Agenda
❑ Commission Approval
❑ Discussion & Direction
❑ Original Document/Contract Attached for Execution by City Clerk
❑ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney ❑ N/A
Reviewed by Finance Dept. ❑ N/A
Reviewed by ( ) ❑ N/A
MEMORANDUM
CLIENT - MATTER NUMBER
06286 -0001
TO: The Honorable Mayor and City Commissioners
FROM: Scott A. Cookson
DATE: May 25, 2012
RE: City of Ocoee vs. Mercon Construction — Settlement Offer
Staff Report
ISSUE
Should the City Commission accept the settlement offer from Mercon in the amount of $15,000?
BACKGROUND/DISCUSSION
In 2011 the City, as Plaintiff, sued Mercon Construction Company and Lexon Insurance Company,
collectively, the Defendant, for damages relating to an award of a bid to Mercon and Mercon's
subsequent failure to fulfill its obligations relating to a construction project at the Pioneer Key 2
subdivision. The City hired a new contractor to complete the work and sued Mercon for $ ,
the difference between the two bid amounts. On May 11, 2012, Mercon filed an Offer of
Judgment /Proposal for Settlement which offers to settle the dispute with Mercon paying the City
$15,000. In the event the City Commission wishes to accept the offer, or if one or more members of the
City Commission desires to further discuss the offer, such discussion would take place in a closed
session of the City Commission on a date to be scheduled.
Both the City Attorney and the City Manager recommend rejection of the $15,000 settlement offer.