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Home My WebLink AboutItem 04 Approval of Settlement Agreement with Jim Gleason : FOLEY AGENDA ITEM COVER SHEET Meeting Date: September 6, 2005 Item # -..!:i Reviewed By: Contact Name: Contact Number: Paul E. Rosenthal, City Attorney 407 -244-3248 Department Director: N/A City Manager: ~/ -- Background Summary: Jim Gleason brought a lawsuit against the City in connection with his termination as City Manager. Court ordered mediation was held on August 17, 2005. This resulted in a settlement which is recommended for approval by the City Manager and City Attorney. Issue: Should the City Commission approve the proposed settlement of the litigation with Jim Gleason? Recommendations It is respectfully recommended that the Mayor and City Commissioners (i) approve the Mediated Settlement Agreement with Mr. Gleason, including the payment to him of the sum of $37,500.00 with funding for such payment coming from the General Fund Contingency Account, (ii) authorize the Mayor and City Clerk to execute such documents as may be required to implement the settlement, including a general release of James Gleason, and (iii) authorize the City's legal counsel Lewis Collins to file such papers with the Court as may be necessary to implement the settlement. Attachments: Memorandum from City Attorney with Agreement and Mediated Settlement Agreement attached thereto. Financial Impact: Funding of $37,500 from General Fund Contingency. Type of Item: o Public Hearing o Ordinance First Reading o Ordinance First Reading IX Resolution o Commission Approval o Discussion & Direction For Clerk's DeDi Use: IXI Consent Agenda o Public Hearing o Regular Agenda 006.384850.1 D Original DocumenVContract Attached for Execution by City Clerk D Original DocumenVContract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by ( ) 006.384850.1 o N/A o N/A o N/A : FOLEY FOLEY & LARDNER LLP ATTORNEYS AT LAW MEMORANDUM CLlENT.MATTER NUMBER 020377.0692 FROM: The Honorable Mayor and City Commissioners of the City of Ocoee Paul E. Rosenthal, Esq., City Attorney QJ~ fl.-,-- Rob Frank, City Manager James Camicella, HR Director Lewis Collins, Esq. TO: cc: DATE: August 29, 2005 RE: J ames Gleason vs. City of Ocoee, et all Settlement of Litigation (Case No. 6:04-cv-880 ORL-28DAB Jim Gleason brought a lawsuit in federal court against the City, Mayor Vandergrift, Commissioner Anderson and Commissioner Howell. The lawsuit raised certain allegations in connection with his termination as City Manager. Trident Insurance Services, the City's insurance carrier, agreed to provide a defense for the named defendants with a reservation of rights, which meant that they would pay for the legal fees and costs associated with the litigation, but that they did not stipulated that the City had insurance coverage with respect to the litigation. Lewis Collins of Butler Pappas was retained by Trident to represent the named defendants. Extensive document review and discovery was undertaken by Mr. Collins in connection with the litigation. Court ordered mediation was held on August 17, 2005 in an effort to settle the litigation. Jay Cohen served as the mediator appointed by the Court. Rob Frank and I participated in the mediation on behalf of the City. Mayor Vandergrift, Commissioner Anderson and Commissioner Howell participated in the mediation on their own behalf. Drue Nicholas of Trident attended on behalf of the insurance carrier. Counsel for the Plaintiff and the Defendant made presentations regarding their views of the facts of the case. After consultation with Drue Nicholas, it was agreed among the defendants that Mr. Nicholas, with the assistance of Lewis Collins and the mediator, would attempt to negotiate a confidential settlement with insurance carrier proceeds and that the defendants would not participate in such negotiations or be entitled to know the results thereof. The defendants entered into a Agreement with Butler Pappas and Trident in order to protect the confidentiality of their negotiations. A copy of that Agreement is attached. Mr. Nicholas was unable to negotiate a settlement using only insurance carrier proceeds. However, based on discussions with the mediator and Mr. Collins, it was determined that a settlement could be 006.384850.1 reached with financial participation by the City. The ultimate result was the settlement of the case with insurance carrier proceeds and a payment by the City to Mr. Gleason in the amount of $37,500.00, subject to the approval of the City Commission. As previously noted the amount paid by Trident and the terms of their settlement with Mr. Gleason are confidential and are not known to the City, except that Mr. Gleason agreed to a stipulated judgment in favor of Mayor Vandergrift, Commissioner Anderson and Commissioner Howell. As part of the settlement the parties agreed to grant mutual general releases at the time of payment and that the claims against the City would be dismissed with prejudice pursuant to a Joint Stipulation. A copy of the Mediated Settlement Agreement is attached hereto. The City Manager, with the concurrence of the City Attorney, agreed to recommend that the City Commission approve the settlement. The amount being paid by the City is roughly equivalent to the 3 months severance pay and benefits, plus interest thereon, that Mr. Gleason would have received under the terms of his Employment Agreement. RECOMMENDATION: It is respectfully recommended that the Mayor and City Commissioners (i) approve the Mediated Settlement Agreement with Mr. Gleason, including the payment to him of the sum of $37,500.00 with funding for such payment coming from the General Fund Contingency Account, (ii) authorize the Mayor and City Clerk to execute such documents as may be required to implement the settlement, including a general release of James Gleason, and (iii) authorize the City's legal counsel Lewis Collins to file such papers with the Court as may be necessary to implement the settlement. Attachment( s) 006.384850.1 UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DMSION JAMES GLEASON Plaintiff, CASE NO. 6:04-cv-880 ORL-28DAB vs. CITY OF OCOEE, FLORIDA; SCOTI VANDERGRIFT, in his individual capacity and in his Official capacity as Mayor/Commissioner; DANNY HOWELL, in his individual capacity and his Official capacity as Commissioner; and SCOTI ANDERSON, in his individual capacity and his Official capacity as Commissioner, Defendants. / AGREEMENT The undersigned Defendants in the above referenced case hereby instruct their attorney Lewis Collins of Butler Pappas and Drue Nicholas of Trident Insurance Services to attempt to negotiate a settlement with insurance carrier proceeds with a general release from the Plaintiff Jim Gleason without their participation and waive any and all rights which they may individually or collectively have to be informed about the negotiations and settlement and the terms and conditions thereof, if any, ever. The undersigned agree that the terms of any such settlement will not be disclosed to them and that they will not request that their attorney and/or insurance carrier provide any documents or other information with respect to such settlement and the terms and conditions thereof. The foregoing does not apply to any settlement agreement(s), if any, between the Plaintiff and one or more of the Defendants with City funds. CITY OF OCOEE, FLORIDA #/.4Ih By: ~ Rob Frank, City Manager ~::~ DATED this 17tl1 day of August 2005. APPro~as to fi.orm and legality.. Foley ~r'ttl1f} By: 4..,tY ~/ Paul E. Rosenthal ~~d~ ~ .---Scott Anderson 006.383578.1 :7~~ ~~,.~~ ~f>>i(M:d~~ ~~~ 'II : 115.. ~ b: 6otfCVtfFD-o(Jt- --.....- -,_.. Jcof"l fhJb ~D~ ! a:,6AJ.rf?4- Fop.. Gt.-~~