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Agenda 02/24/2026 Item #16K 2 (The CAO to reject Plaintiff’s Proposal for Settlement and, in response, file an Offer of Judgment (settlement offer) to Plaintiff Mersino Dewatering, LLC in the lawsuit styled Mersino Dewatering, LLC v. Collier County BCC)2/24/2026 Item # 16.K.2 ID# 2026-304 Executive Summary Recommendation to approve and authorize the County Attorney’s Office to reject Plaintiff’s Proposal for Settlement and, in response, file an Offer of Judgment (settlement offer) to Plaintiff Mersino Dewatering, LLC in the lawsuit styled Mersino Dewatering, LLC v. Collier County Board of County Commissioners, (Case No. 25-CA-1782), pending in the Circuit Court of Collier County, Florida. OBJECTIVE: To seek Board authorization to reject Plaintiff’s proposal for settlement and, in response, file an Offer of Judgment to Plaintiff Mersino Dewatering, LLC for $10,000.00 to resolve the pending lawsuit. CONSIDERATIONS: The Plaintiff initiated a lawsuit in the 20th Judicial Circuit against Collier County on August 12, 2025, alleging breach of an unsigned “Pumping Services & Equipment Rental Agreement”, hereinafter the “Unsigned Agreement”. The Plaintiff supplied 75 long-term rental pumps to the County for lift stations that were completely submerged by Hurricane Ian’s storm surge and said pumps were damaged beyond repair. According to Plaintiff, the County is responsible for the cost of replacing its damaged pumps because the Unsigned Agreement stated the County bears the risk of loss of the equipment during the terms of the lease. However, the County’s standard purchase order was provided to the Plaintiff prior to the installation and operation of the pumps and indicates that the Plaintiff would be responsible for the risk of loss unless it sold the pumps to Collier County. The “Unsigned Agreement” was provided to the County only after the pumps were installed and operational. The Plaintiff claims to have incurred approximately $1,500,000.00 in damages, fees and interest. However, the Plaintiff did insure the pumps and received approximately $250,000.00 from its liability insurer for the damages. The Plaintiff is, essentially, seeking payment from the County for the difference. The 20th Judicial Circuit ordered the parties to participate in mediation, which was held on January 19, 2026 and there was an impasse. The Plaintiff served this office with Notice of Service of Offer/Proposal for settlement on January 30, 2026, for $1,000,000.00. Risk Management, outside legal counsel and the County Attorney’s Office find the Plaintiff’s allegations baseless and lacking merit based on the County’s standard purchase order which clearly placed the risk of loss on the Plaintiff. Moreover, in the absence of an express contract, the Florida Uniform Commercial Code also places the risk of loss on the Plaintiff. Despite this, there are inherent costs to the County in defending ongoing litigation, so there is value to the taxpayers of the County in resolving lawsuits at a “nuisance value” level. While it is highly unlikely that Plaintiff will accept $10,000.00 to settle the lawsuit, § 45.061 and § 768.79, Fla. Stat., seek to encourage litigants to settle such matters by awarding costs and attorney’s fees (from the date of the settlement offer) to prevailing defendants who offer a settlement that is at least 25% better than the ultimate outcome. Therefore, with a $10,000.00 settlement offer, the County can be awarded costs and attorney’s fees by the Circuit Court should it prevail (defense verdict) or if the Plaintiff is awarded damages of $7,500.00 or less by a jury. Risk Management, outside legal counsel, and the County Attorney’s Office recommend this course of action to allow resolution of this lawsuit for a nuisance amount of $10,000.00 otherwise the Circuit Court can award the County costs and attorney’s fees (from the date of the settlement offer) should the County ultimately prevail (defense verdict) or the Plaintiff is awarded $7,500.00 or less by a jury. FISCAL IMPACT: Should Plaintiff accept the settlement offer, $10,000.00 will be provided by the Water Sewer Operating Fund, 4008000000-233351-645915. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. Page 2145 of 3023 2/24/2026 Item # 16.K.2 ID# 2026-304 RTT RECOMMENDATION(S): To approve and authorize the County Attorney’s Office to reject Plaintiff’s proposal for settlement and, in response, file an Offer of Judgment to Plaintiff Mersino Dewatering, LLC for $10,000.00 (settlement offer), in the matter styled Mersino Dewatering, LLC v. Collier County Board of County Commissioners, Case No. 25- CA-1782, pending in the Circuit Court of Collier County, Florida. PREPARED BY: Ronald T. Tomasko, Assistant County Attorney ATTACHMENTS: None Page 2146 of 3023