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Agenda 03/10/2009 Item #16K 2 l\genda It8m N'J. 16K2 ~v'1arch '10, 2009 Page 1 of 9 .~ EXECUTIVE SUMMARY Recommendation to approve settlement in the lawsuit entitled Collier County, Florida I'S. Botner Land Design, Inc., et al., filed in the Twentieth Judicial Circuit in and for Collier County, Florida, Case No. 02-1923-CA for $99,500.00. OBJECTIVE: For the Board of County Commissioners to approve settlement, whereupon the County will accept $99,500.00 as full settlement in the lawsllit entitled Collier County, Florida VS. Botner Land Design, Inc., et aI., recovering for claims ofhreach of contract and professional negligence relating to the landscape architect's design and contract administration on three projects. - CONSIDERATIONS: On May 24, 2002 Collier County filed suit against Botner Land Design, Inc., a Florida Corporation, George Botner, ASIA, Landscape Architect, (hereinafter "Botner") and Central Florida Landscaping of Tampa, Inc., nlk/a Central Florida Landscaping, Inc. The claim against Botner was basically that he committed breach of contract and professional negligence as both the design professional and contract administrator for three projects. The projects were Davis Boulevard, Phase II, Bayshore Boulevard Streetscape Project, (hereinafter "Bayshore"), and USAl North median landscape, (hereinafter "USAI North Median Project"). The allegations against Central Florida Landscaping are dirccted to actions in the Davis Boulevard Project only and are for breach of contract dealing with the installation of an irrigation system. Prior to service upon defendant, Central Florida Landscaping, Central Florida Landscaping had filed for bankruptcy. Thus, the hankruptcy of Central Florida Landscaping stayed any action against it pending the outcome of the hankruptcy. Ultimately, Central Florida Landscaping was determined to be bankrupt and the claim against them was dismissed hy the Court. - After service was affected against Botner, his professional negligence carrier, who insured Botner for professional negligence in accordance with the terms of Botner's agreement with the County, filed for hankruptcy. To emphasize, Botner did not file for bankruptcy but the insurance company that he paid a premium to provide professional ncgligence insurance filcd for bankruptcy. As a result of this bankruptcy, the cntire litigation was stayed by the Bankruptcy Court in Pennsylvania pending the outcome of the insurance company bankruptcy. Ultimately, the insurance company was declared bankrupt and the Florida Insurance Guarantee Association, (hereinafter "FIGA"), stood in the place of the insurancc company. FIGA then assumed representation of Botner. Under Florida law, FIGA's extent of liability was substantially less than the insurance company for Botner and at its maximum amount available would be $300,000.00, if all claims were proven and the matter went to trial. The FIGA $300,000.00 limit was not for damages only bllt also includcd all costs incUlTed in taking the matter to trial. In other words, the FIGA attorney and all expert fees and all costs for depositions and discovery would come off the $300,000.00 limit. In fact, without any meaningful discovery being conducted, other than the exchange of interrogatories and requests to produce and document inspection, the al110lmt available has already been reduced by S40,000.OO at the time of the proposed settlement. f"genda :rc::::r,i ~'Jo. ~_~K2 fVi3,c.n 10, .:::::uU9 2 of 9 On June 20, 2008, I forwarded a demand package to the attorney for Botner which was a dctailed outline of what the County felt were appropriatc damages and the liability of Botner. The mattcr was taken under consideration by Botner and his attorney whieh required an in depth review. On or about February 18, 2009, the attorney for Botner and I agreed to a settlement in the amount of $99,500.00 for all claims, subject to Board approval. I believe that this settlement is reasonable and cost effective under all the circumstances. In order to take this matter to trial, the County would have to incur somewhere between $ I 0,000.00 and $20,000.00 in deposition costs alone. Moreover, the County would have had to retain at least one if not two experts in the field and could anticipate their costs in reviewing the numerous files involved to be somewhere between $30,000.00 and $60,000.00 excluding the costs of trial. Even more telling would be the fact that Botner's attorney would also have to conduct discovery as well as retain an expert or experts and I can state that their costs would have been well in excess of the County's when you factor in legal fees since all costs incurred by FIGA would be deducted fi'om the sum remaining. Based upon the above, the age of these claims, the protracted bankruptcy stay and the total monies available, the County Attorney recommends that this mattcr bc settled for the sum of $99,500.00. FISCAL IMPACT: The settlement offer amounts to $99,500.00, which will be revenue deposited into Fund 112-163652-600761-369130. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: Both the County Attorney and the Transportation Administrator opine that settlement in the sum of $99,500.00 for the County's claims is reasonable and cost effcctivc under all the circumstances outlined. This itcm is not quasi judicial, and as such cx partc disclosurc is not required. This item requires majority vote only. This item is legally sufficient for Board Action. Approvcd: JWH, Litigation Section Chief RECOMMENDATION: That the Board of County Conm1issioners approve settlement in the amount of $99,500.00 and authorize the Chairman of the Board of County Commissioners to execute all necessary documents. PREPARED BY: Jacqueline Williams Hubbard, Litigation Section Chief 02-1923-CA'1170 2 Item Number: Item Summary: Meeting Date: Page 1 of I AgencJa Item No. '16K2 rv~arch 10. 2009 Page:; of 9 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 1GK2 Recommendation to applove settlement in the lawsuit entitled Collier County Florida vs. Botner Land Design. Inc" et al., filed in the Twentieth Judicial Circuit in and for Collier County, Florida, Case No 02-1923-CA for $99.500,00. 3/10/2009900:00 AM Prepared By Jacqueline W. Hubbard County Attorney Assistant County Attorney Date County Attorney Office 2/25/200911:48:44 AM Appro\-'Cd By Pamela J. Lulich Transportation Services Proj~ct Manager Date Alternative T,ansportation Modes 2/26/20099:49 AM Approved By Jacqueline W. Hubbard County Attorney Assistant County Attorney Date County Attorney Office 2'26/2009 12:08 PM Apprond By Michelle Edwards Arnold Transportation Services Alternative Transportation Modes Director Date Alterniltive Tr<lospor;ation Mod(;s 2,'26:'20(193:11 PM Approved B)-' Kelsey Ward Administrative Services Contract Administration Manager Date Purchasing 2,'25/:0093:39 PM Apprond By Norm E. Feder, AiCP Transportation Services Transportation Division Administrator Date Transportation Services Admin. 2126/2009 4:43 PM Approved By Jeff Klatzkow County Attorney Assistant County A.ttomey Dz:te County Attorney Office 2/26/2Q09 5:18 PM A pproved By OMS Coordinator County Manager's Office OMB Coordi;wtor Date Office of Management & Budget 2/27!2009 9:42 AM Approved By Mark iSaCF-.S0!l County Manager's Office 3udgel p-.nuiy,;;t Date Office of Management & Budget 3;'2/20092:17 PM ..\ pprovcd B)' Jar"'es V. Mudd Bo.::rd of County Commissioners CQun~y ~,~Z:1B;:2r :J:::tc County Manager's Office 3!2!2009 5:58 PM 1,1",.lIr.\ ^ n"'....rl"T"',,1'\ I:'v....,-"'1'\ 1" t\tf.--...,--.I~o/_ ,n 1 n 0/_ ,n,nno\ 1 h o/~ ,nrr\~I~i='l\TTO/" ,n ^ nl:'l\lf"\ ^ \ 1 ~ 1_1/,nno AGenda l~ei11 ~Jo. "I i31<2 J r"~arch i 0 2009 P3:J8 4 ()f 9 SETTL.EMENT AGREEMENT AND MUTUAL RELEASE THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (hereinafter referred to as the "Agreement and Release") is entered into and made on this day of , 2009 by and between Botner Land Design, Inc. and George Botner, ASLA, a sole proprietor, licensed to do business in the State of Florida (hereinafter referred to as "Botner") and Board of County Commissioners for Collier County (hereinafter referred to as the "County"). WIT N E SSE T H: WHEREAS, County filed a lawsuit against Botner in the Circuit Court for the Twentieth Judicial Circuit in and for Collier County, Florida, styled Board of County Commissioners for Collier County v. Botner Land Design, Inc. and George Botner, AS LA, a sole proprietor, licensed to do business in the State of Florida; Case No. 02- 1923-CA (hereinafter referred to as the "Lawsuit"); and, WHEREAS, County and Botner, without either of them admitting any liability or fault, desire to settle the Lawsuit and any and al/ disputes that arise from, relate or refer in any way, whether directly or indirectly, to the incidents described or allegations made in the Complaint filed in the Law5uit; and, WHEREAS, County and Botner desire to reduce their settlement to a writing so that it shall be binding upon them as well as their respective owners, principals, elected ,!:\.'Jenda item No. 16K2 March 10. 2009 Page 5 of 9 officials, officers, employees, ex-employees, agents, attorneys, representatives, insurers, spouses, successors, assigns, heirs and affiliates. NOW, THEREFORE, in consideration of the mutual covenants, promises and consideration set forth in this Agreement and Release, and with the intent to be legally bound, County and Botner agree as follows: 1. County and Botner adopt and incorporate the foregoing recitals, sometimes referred to as 'Whereas Clauses", by reference into this Agreement and Release. 2. In consideration of the resolution of all disputes or claims arising from or referring or relating in any way, whether directly or indirectly, to the Lawsuit, and for and in consideration of the sum of Ninety Nine Thousand Five Hundred Dollars ($99,500.00) and other valuable consideration, the receipt and adequacy of which is hereby acknowledged by County, County agrees to dismiss the Lawsuit with prejudice. 3. In consideration of the resolution of the Lawsuit, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, County, on its behalf, as well as on behalf of its elected officials, officers, employees, ex-employees, attorneys, agents, representatives, insurers, successors and assigns and affiliates hereby expressly releases and forever discharges Botner, as well as its officers, employees, ex-employees, agents, attorneys, representatives, successors, assigns, heirs, insurers and affiliates from any and all claims, demands, causes of actions, damages, costs, attorney's fees, expenses and obligations of any kind or nature whatsoever that he has asserted or could have asserted in the Lawsuit or that .- 2 !\osnda !terr, No. "16K2 ~ March 10. :009 ?~}de 6 of 9 arise from or relate or refer in any way, whether directly or indirectly, to the Lawsuit or any incident, event or allegation referred to or made in the Complaint in the Lawsuit. 4. Notwithstanding anything that may be to the contrary in Paragraph 3 of this Agreement and Release, County and Botner agree that either of them (as well as any other persons or entities intended to be bound) shall, in the event of any breach, retain the right to enforce the terms and conditions of this Agreement and Release. 5. County and Botner acknowledge and agree that this Agreement and Release is intended to and shall be binding upon their respective owners, principals, officials, officers, employees, ex-employees, agents, attorneys, representatives, insurers, successors, assigns, spouses, heirs and affiliates. 6. County and Botner recognize and acknowledge that this Agreement and Release memorializes and states a settlement of disputed claims and nothing in this Agreement and Release shall be construed to be an admission of any kind, whether of fault, liability, or of a particular policy or procedure, on the part of either County or Botner. 7. County and Botner acknowledge and agree that this Agreement and Release is the product of mutual negotiation and no doubtful or ambiguous language or provision in this Agreement and Release is to be construed against any party based upon a claim that the party drafted the ambiguous provision or language or that the party was intended to be benefited by the ambiguous provision or language. 8. This Agreement and Release may be amended only by a written instrument speCifically referring to this Agreement and Release and executed with the same formalities as this Agreement and Release. 3 Aoenca I~em No. 16K2 ~ March 10. 2009 Page 7 oi 9 9. In the event of an alleged breach of this Agreement and Release, County and Botner agree that all underlying causes of action or claims of County have been extinguished by this Agreement and Release and that the sole remedy for breach of this Agreement and Release shall be for specific performance of its terms and conditions or any damages arising from the breach. In this regard, County and Botner further agree that the sole venue for any such action shall be in the Twentieth Judicial Circuit in and for Collier County, Florida in Naples, Florida. 10. This Agreement and Release shall be governed by the laws of the State of Florida. IN WITNESS WHEREOF, County and Botner have signed and sealed this Agreement and Release as set forth below. Date: Dale: ATTEST: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: Deputy Clerk Donna Fiala, Chairman Date: Botner Land Design, Inc. Signature Print Name Print Title 4 i~genGa Item No. ~ 6K2 March 10 2009 ?21ge 8 of 9 STATE OF COUNlY OF THIS SETTLEMENT AGREEMENT AND RELEASE BETWEEN COLLIER COUNlY AND BOTNER LAND DESIGN, INC. WAS SWORN TO and subscribed by . before me on this day of 2009, Personally Known or Produced Identification Signature of Notary Public Commissioned Name of Notary Public (Please print, type or stamp) My Commission expires: Type of Identification Produced Date: Botner Land Design, Inc, Signature Print Name Print Titie STATE OF COUNlY OF THIS SETTLEMENT AGREEMENT AND RELEASE BETWEEN COLLIER COUNTY AND GEORGE BOTNER, ASLA, a sole proprietor, licensed to do business in the State of Florida WAS SWORN TO and subscribed 5 by 2009. , before me on this day of Personally Known or Produced Identification Signature of Notary Public l\]enda Item ~~o. 16K2 March 10, 2009 Page 9 of 9 Commissioned Name of Notary Public (Please print, type or stamp) My Commission expires: Type of Identification Produced Approved as to form and legal sufficiency: {iacqueline Williams Hubbard Litigation Section Chief - i 02-1923CAIII68 6