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Home My WebLink About2007-086ORDINANCE NO. 00%�� AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A COMPROMISE SETTLEMENT AGREEMENT BETWEEN ENRIQUE VILLAGOMEZ AND THE CITY OF DENTON; AUTHORIZING THE CITY MANAGER AND THE CITY'S ATTORNEYS TO ACT ON THE CITY'S BEHALF IN EXECUTING ANY AND ALL DOCUMENTS, AND TO TAKE OTHER ACTIONS NECESSARY TO FINALIZE THE SETTLEMENT; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1. The City Council hereby approves the Compromise Settlement Agreement between the City of Denton and Enrique Villagomez for reimbursement of medical liens related to pending litigation styled Enrique J Villagomez v. David Owen Frisby, et al., Cause Number 2005-60283-393, currently pending in the 393rd District Court of Denton County, substantially in the form of the attached Compromise Settlement Agreement. SECTION 2. The City Manager, or his designee, and the City's Attorneys are hereby authorized to act on the City's behalf in approving and executing any and all documents, and to take other actions necessary, to finalize the settlement. SECTION 3. The City Manager, or his designee is hereby authorized to expend the funds in accordance with the attached Compromise Settlement Agreement. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of46rJ l , 2007. C PERR McNEILL, MAYOR S:\Our Oocumen¢\Ordinances\0]\villagomcz seulemem u�diwnceda ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: d A-j APPR % ED AS LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY Page 2 CCS. 7909 CAUSE NO.2005-60283-393 ENRIQUE J. VILLAGOMEZ § IN THE DISTRICT COURT V. § DAVID OWEN FRISBY, § HURRICANE WASTE SYSTEMS, § DENTON COUNTY, TEXAS L.L.C, a/k/a HURRICANE WASTE § SYSTEM, L.L.C.,and HURRICANE § WASTE SYSTEMS, HURRICANE § TRANSPORTATION, INC., and § CORRUGATED SERVICES, L.P. § 393RD JUDICIAL DISTRICT COURT MUTUAL RELEASE I. 1. THE CITY OF DENTON ("DENTON")and ENRIQUE J. VILLAGOMEZ ("VILLAGOMEZ") enter into this Mutual Release and settlement to resolve all matters in dispute and controversy between each other. 2. The subject matter of this Mutual Release is the civil suit ("Suit")brought by VILLAGOMEZ against DAVID OW EN FRISBY, HURRICANE WASTE SYSTEMS, L.L.C., a/k/a HURRICANE WASTE SYSTEM, L.L.C., and HURRICANE WASTE SYSTEMS, HURRICANE TRANSPORTATION, INC., and CORRUGATED SERVICES, L.P. (collectively "DEFENDANTS")for damages allegedly caused by and resulting from an accident on or about February 19, 2004 regarding the conduct of Defendants. VILLAGOMEZ previously received worker's compensation benefits from DENTON due to his injuries and damages resulting from the accident 3. Accordingly, DENTON asserted its legally proper and valid rights by seeking subrogation from VILLAGOMEZ for past and future worker's compensation benefits paid or to be paid to or on behalf of VILLAGOMEZ. By this Mutual Release, VILLAGOMEZ and DENTON, as part of the above -captioned Suit (even though DENTON was not sued or a named party to this suit) enter into a settlement as to DENTON'S subrogation interests for past worker's compensation benefits paid by DENTON to or on behalf of VILLAGOMEZ as of April 11, 2007. II. 4. VILLAGOMEZ and DENTON desire to resolve all matters in dispute and controversy between each other. 5. Pursuant to this agreement and settlement, DENTON agrees to release any subrogation or any other rights as to past worker's compensation benefits paid, as identified in TEx. LABOR CODE § 417.002(a), by DENTON to or on behalf of VILLAGOMEZ as a result of the injuries suffered by VILLAGOMEZ in the accident made the basis of the Suit. 6. In exchange for that consideration VILLAGOMEZ agrees to pay two -hundred -forty- five -thousand, nine -hundred -thirty-five dollars and seventy-one cents ($245,935.71) out of his settlement with the DEFENDANTS and agrees to release and relinquish any and all claims, now or in the future, against DENTON for any additional alleged past worker's compensation benefits, any alleged delay in payment of the worker's compensation benefits, for any alleged problem in the handling and/or payment of the worker's compensation claim and benefits to VILLAGOMEZ, and any other bad faith claim, including but not limited to, common law bad faith claims, claims under the Texas Insurance Code and/or claims under the Texas Deceptive Trade Practices Act. Further, it is expressly understood that the payment of the $245,935.71to DENTON does not include any claim for attorneys' fees or expenses and that DENTON will not be liable or responsible now or in the future for the payment of attorneys' fees or expenses either directly or indirectly in the above referenced matter. Furthermore, SPRINGER & LYLE, L.L.P, legal counsel for VILLAGOMEZ, agrees to waive any entitlement it may have for attorneys' fees from DENTON pursuant to, but not limited to, Tex. LABOR CODE § 417.003. 7. Furthermore, in addition and also in exchange for said consideration, VILLAGOMEZ agrees, pursuant to Tex. Labor Code §417.002(b), that nine -hundred -forty - thousand, four -hundred -fifty-two dollars and sixty-three cents ($940,452.63) represents the amount recovered by VILLAGOMEZ exceeding the amount of the reimbursement required under Tex. Labor Code §417.002(a) and $940,452.63 shall be treated as an advance against future benefits, including medical benefits, that VILLAGOMEZ should show himself entitled to receive under the Texas Worker's Compensation Act as a result of the injuries suffered by VILLAGOMEZ in the accident made the basis of Suit. 8. Furthermore, in addition and also in exchange for said consideration, VILLAGOMEZ agrees to release and relinquish any and all claims, now or in the future, against DENTON for any and all future indemni benefits that VILLAGOMEZ would show himself entitled to receive under the Texas Worker's Compensation Act as a result of the injuries suffered by VILLAGOMEZ in the accident made the basis of the Suit. VILLAGOMEZ agrees to said release of future indemnity benefits EVEN IN THE EVENT THE $940,452.63 ADVANCE AGAINST FUTURE BENEFITS IS EXHAUSTED PURSUANT TO THE TEXAS LABOR CODE. VILLAGOMEZ and DENTON agree VILLAGOMEZ does not intend to waive his right, if any, to seek any and all future medical benefits that VILLAGOMEZ should show himself entitled to receive under the Texas Worker's Compensation Act. However VILLAGOMEZ and DENTON agree VILLAGOMEZ may only seek such future medical benefits UPON THE $940,452.63 ADVANCE AGAINST FUTURE BENEFITS BEING EXHAUSTED PURSUANT TO THE TEXAS LABOR CODE. 9. VILLAGOMEZ and his attorneys, as evidenced by the signatures below, fully understand that this is a complete release as to the above mentioned claims and causes of action that VILLAGOMEZ and/or his attorneys may have against DENTON for any matters or claims which arise out of or are connected directly or indirectly to the above referenced litigation and the payment and/or handling of the worker's compensation claim and payment of benefits, whether such claims and causes of action were asserted in the above -captioned litigation, including but not limited to any and all claims for attorneys' fees, expenses or costs associated with the above referenced matter either directly or indirectly. This Release may be executed in multiple originals. SIGNED this , day of 2007. ENRIQUE J. VILLAGOMEZ J. JEFFREY SPRINGER State Bar No. 18966750 SPRINGER & LYLE, L.L.P. 1807 Westminster Denton, Texas 76205 (940)387-0404 (940) 383-7656 [Fax] ATTORNEYS FOR ENRIQUE J. VILLAGOMEZ 9� GEOR E C. CAMPBELL City Manager for the City of Denton JERRY DRAKE Deputy City Attorney for the City of Denton WILLIAM W. KRUEGER, III State Bar No, 11740530 FLETCHER & SPRINGER, L.L.P 8750 North Central Expressway Suite 1600 Dallas, Texas 75231 (214)987-9600 (214)987-9866 [Fax] ATTORNEYS FOR NON-PARTY CITY OF DENTON STATE OF TEXAS § COUNTY OF § BEFORE ME, the undersigned Notary Public in and for the State of Texas, on this day personally appeared , Authorized Representative forENRIQUE J. VILLAGOMEZ, ]mown to me to be the person whose name is subscribed to the foregoing instrument, who, after being duly sworn, on oath stated that she has read the above and foregoing Mutual Release and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of 200T My Commission Expires: Notary Public in and for The State of Texas STATE OF TEXAS COUNTY OF DENTON BEFORE ME, the undersigned Notary Public in and for the State of Texas, on this day GEORGE C. CAMPBELL personally appeared , Authorized Representative for CITY OF DENTON, known to me to be the person whose name is subscribed to the foregoing instrument, who, after being duly swom, on oath stated that he/she has read the above and foregoing Mutual Release and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the ,!5�day of 200T JANE E. RICHARDSON Notary Public, State of Texas s. ! ; My Commission Expires r June 27, 2009 My Commission Expires: 0&L27/0I Qvfd e� &a * N ary Public in and for The State of Texas SETTLEMENT PROPOSAL Yi//Wmer Y. Harricaee Waste Systemss et a/ TOTAL SETTLEMENT $1,900,000.00 INCURRED BENEFITS AS OF 11-Apr-07 Medical $339,174.93 Indemnity $70,717.92 'Legal $40,019.29 `Other $19,461.30 Total $469,373.44 REIMBURSABLE INCURRED BENEFITS (LIEN) Medical $339,174.93 Indemnity $70,717.92 Total $409,892.85 ACCEPTANCE OF 40% PROPORTIONATE RESPONSIBILITY UNDER CPRC § 33.003 Total $245,935.71 ($409,892.85 x 60%) PLAINTIFF'S NET SETTLEMENT PLAINTIFF'S ATTORNEYS FEES & COSTS 40% Attorneys Fees $661,625.71 Costs of Suit $51.985.95 Total $713,611.66 $1,654,064.29 ($1.9M - $245,935,71) $713,611.66 ($1,654,064.29 - $713,611.66) WITHOUT PLAINTIFF'S LAWSUIT EXPENSES AS OF APRIL 11, 2007 Medical $339,174.93 Indemnity $70.717.92 Other $19,461.30 Total $429,354.15 FUTURE EXPECTED BENEFITS/COSTS Total $592.000.00 TOTAL EXPECTED COSTS $1,021,354.15 WITH PLAINTIFF'S LAWSUIT TOTAL EXPENSES AS OF APRIL 11, 2007 Medical $339,174.93 Indemnity $70,717.92 'Other $19,461.30 `Legal $40,019.29 Total $469,373.44 RECOVERY OF LIEN Total $245,935.71 ATTORNEY'S FEES TO FLETCHER & SPRINGER, LLP 'Reduced Hourly Rate $40,019.29 (as of 4/2107) Contingency Fee $36,890.35 (15% of $245,935.71) Total $76,909.64 CASH TO CITY OF DENTON Total $169,026.07 NET EXPENSES AS OF APRIL 11, 2007 Total $300,347.37 FUTURE EXPECTED BENEFITS/COSTS Total $0.00 TOTAL EXPECTED COSTS $300,347.37 TOTAL SAVINGS TO CITY OF DENTON OF $721,006.78