Agenda 07/08/2014 Item #16K107/8/2014 16.K.10.
EXECUTIVE SUMMARY
Recommendation to approve and execute a Settlement Agreement and Release with a
Geraldine Lustro, in order to settle a claim by her against funds donated to the Collier
County Public Library by her brother, Ronald M. Wade, deceased, and to accept and
recognize the remainder of the donated funds.
OBJECTIVE: For the Board of County Commissioners to approve and execute a Settlement
Agreement and Release with a Geraldine Lustro, a copy of which is attached, to settle a claim by
her against funds donated to the Collier County Public Library by her brother, Ronald M. Wade,
deceased, and thereby accept and recognize the remainder of the donated funds to the Library by
Ronald M. Wade, deceased.
CONSIDERATIONS: Ronald M. Wade, deceased, a former resident of Collier County,
provided for a transfer on death of 20% of the funds in his Morgan Stanley investment account(s)
and 20% of the funds in his Discover Bank account(s) to the library on Orange Blossom Road.
He also provided for the balance of these accounts to be distributed among four (4) additional
institutions. Mr. Wade died, intestate, in November 2013. His only heir, a sister Geraldine
Lustro, gave Mr. Wade $65,000.00 to invest for her in 2004. Mr. Wade deposited his sister's
money into his Morgan Stanley investment account(s), thereby comingling his sister's money
with his existing money in the account(s). Upon his passing, he made no provision for his sister
to be reimbursed for her funds, either as a beneficiary of these accounts or through a will. Ms.
Lustro subsequently hired attorneys in Chicago, Illinois to open an intestate estate, which was
done, and then contacted the Library demanding funds to reimburse Ms. Lustro for her
investment with her brother or commence involved litigation with the County, the other 4
institutions, Morgan Stanley and Discover Bank. The exact amount of funds the Library will
receive is uncertain because of the fluctuating nature of the investment accounts day to day.
However, it is estimated that the Library will receive an amount over $200,000.00 after Ms.
Lustro receives the reimbursement of her funds. After considering the circumstances and
considerable negotiation, the Director of the Library and the County Attorney opine that it would
be in the best interests of the County to settle this matter for the amount of $18,503.05 paid to
Ms. Lustro after the County receives its total share of the funds. This represents 20% of the
amount of an agreed growth of the original $65,000.00. The cost of litigation would exceed this
amount, and the County, and the Library, would, it appears, still receive over $200,000.00.
FISCAL IMPACT: The County would receive over $200,000.00 for the Library's use.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated
with this item.
LEGAL CONSIDERATIONS: After considering the circumstances and considerable
negotiation, the Director of the Library and the County Attorney opine that it would be in the
best interests of the County to settle this matter for the amount of $18,503.05 after the County
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receives its share of the funds. The cost of litigation would exceed this amount, and the County,
and the Library, would, it appears, still receive over $200,000.00. This item has been approved
as to form and legality and requires a majority vote for Board approval. - KN
RECOMMENDATION: That the Board of County Commissioners approve and execute a
Settlement Agreement and Release with a Geraldine Lustro, a copy of which is attached, in order
to resolve a claim by her against funds donated to the Collier County Public Library by her
brother, Ronald M. Wade, deceased, and also accept and recognize the funds donated to the
Library by Ronald M. Wade, deceased.
PREPARED BY: Kevin L. Noell, Esq., Assistant County Attorney
Marilyn Matthes, Director of the Library
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.K.16.K.10.
Item Summary: Recommendation to approve and execute a Settlement Agreement and
Release with a Geraldine Lustro, in order to settle a claim by her against funds donated to the
Collier County Public Library by her brother, Ronald M. Wade, deceased, and to accept and
recognize the remainder of the donated funds.
Meeting Date: 7/8/2014
Prepared By
Name: CrotteauKathynell
Title: Legal Secretary, CAO Office Administration
7/2/2014 12:21:15 PM
Approved By
Name: NoellKevin
Title: Assistant County Attorney, CAO General Services
Date: 7/2/2014 1:09:31 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 7/2/2014 1:41:40 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mngmt Svs, Office of Management & Budget
Date: 7/2/2014 1:56:11 PM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 7/2/2014 3:15:59 PM
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SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE made by and between the BOARD
OF COUNTY COMMISSIONERS, COLLIER COUNTY, FLORIDA (hereinafter the
"COUNTY ") for the Collier County Public Library a/k/a the Naples Public Library and
GERALDINE LUSTRO (hereinafter "LUSTRO ") of Ehnwood Park, Illinois on, the date(s)
hereinafter signed in counterparts.
WITNES SETH:
WHEREAS, LUSTRO is the sister and sole surviving heir of RONALD M. WADE,
Deceased (hereinafter "DECEDENT "); and
WHEREAS, LUSTRO allegedly tendered to DECEDENT in 2004 a sum of $65,000.00 to
invest for her; and
WHEREAS, DECEDENT deposited said $65,000.00 in his Morgan Stanley investment
account(s), co- mingling said funds; and
WHEREAS, DECEDENT died intestate; and
WHEREAS, DECEDENT provided for a Transfer on Death of the all proceeds of his
Morgan Stanley investment account(s) to five (5) separate institutions, one of which is the
COLLIER COUNTY PUBLIC LIBRARY A/K/A Naples Public Library (hereinafter the
"LIBRARY "); and
WHEREAS, LUSTRO is claiming a legal and equitable interest in DECEDENT'S Morgan
Stanley investment account(s) by virtue of her tendering the $65,000.00 to the DECEDENT and
he depositing it in said account(s); and
WHEREAS, the COUNTY disputes the claim by LUSTRO of any interest in the funds in
said Morgan Stanley investment account(s); and
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WHEREAS, both the COUNTY and LUSTRO wish to avoid any prolonged and
unproductive litigation in this matter; and
WHEREAS, the COUNTY and LUSTRO have come to an agreement to settle all
differences between them regarding the dispute over funds in the DECEDENT'S Morgan Stanley
investment account(s).
NOW THEREFORE, in consideration of the preambles set forth hereinabove, the mutual
promises set forth herein below, and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties hereto agree as follows:
1. The preambles set forth hereinabove are incorporated in and made a part of this
agreement.
2. For purposes of this Settlement Agreement only, the parties hereto agree that
LUSTRO should receive her $65,000.00 back at a reasonable growth rate of 4.0% interest
compounded from October 2004 to and including November 2013; the parties agree that the
compounded figure is $92,515.27 and represents a reasonable rate of growth of the $65,000.00
over the stated period of time.
3. The COUNTY agrees to pay 20% of the compounded figure, or $18,503.05, to
LUSTRO upon receiving its 20% share of the funds from the Morgan Stanley investment
account(s) when liquidated and disbursed.
4. LUSTRO agrees to accept the $18,503.05 as and for full payment for any claims
she may have or expect to have upon the COUNTY'S share of the funds, when liquidated, from
the DECEDENT'S Morgan Stanley investment account(s), and in return hereby agrees to forever
release and forbear any claims against the COUNTY for any claims that she has, may have, or
expects to have in the COUNTY'S share of the funds, as set forth by the DECEDENT, in the
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Morgan Stanley investment account(s) or any other disbursements the DECEDENT may have
provided for the COUNTY, including the DISCOVER BANK, upon his death. LUSTRO further
agrees to waive any and all claims of any interest in the funds to be disbursed from the DISCOVER
BANK to the COUNTY.
5. LUSTRO further agrees that this AGREEMENT and the Release contained herein
shall be binding upon her heirs, devisees, agents, assigns, attorneys, lienors, creditors, successors
or any other persons or entities that may claim any interest(s) buy, through, under, or against her,
forever.
6. This Agreement and Release shall not be changed or modified unless done so in
writing and signed by both parties.
7. This Agreement and Release shall be governed by the laws of the State of Florida.
8. This Agreement and Release shall be deemed to be performed in Collier County,
State of Florida, and the parties agree that the proper venue for any action hereunder, should that
become necessary, shall be in the Twentieth Judicial Circuit Court in and for Collier County,
Florida, and the parties hereto submit to the jurisdiction and venue of that Court for purposes of
this Agreement and Release.
9. Should enforcement of this Agreement become necessary, the successful party to
any such enforcement procedure or action shall be entitled to all costs, fees, and attorney's fees
necessary for the same.
10. This Agreement may be executed in counterparts.
WHEREFORE, we have placed our hands and seals.
[THIS SPACE INTENTIONALLY LEFT BLANK]
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DATED: This �� day of QkA 2014.
-4 1 V'
STATE OF ILLINOIS )
)SS:
COUNTY OF COOK )
The undersigned, being a Notary Public for the State of Illinois, hereby certifies that
GERALDINE LUSTRO appeared before me this -? % day of , 2014
and is either personally known to me t, or produce the following identification:
and after having first been sworn stated that
she affixed his signature to the above and foregoing document, and that the statements contained
therein are true and correct to the best of her knowledge.
WITNESS:
ATTORNEY /
3rsS� !4.
(Spell Name)
NO �Y PUBLIC A A FOR THE STATE OF ILLINOIS
Printed Name
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Commission Expires
IWWMMY JOHNSON
OFFICIAL SEAL
Notary Public of (Nil a"t�s
My s7
BATED: This day of , 2014
ATTEST:
DWIGHT E. BROCK, CLERK
DEPUTY CLERK
Approved as to form
and legal sufficiency:
Kevin L. Noell, Esq.
Assistant County Attorney
7/8/2014 16.K.10.
BOARD OF COUNTY COMMISSIOMNERS
COLLIER COUNTY. FLORIDA
Im
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TOM HENNING,
CHAIRMAN