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1992-135e:\updocs\smattset.o AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND AUTH- ORIZING THE CITY MANAGER TO EXECUTE A RELEASE IN THE MATTER OF R.C. SMALL & ASSOCIATES, INC. V. THE CITY OF DENTON, TEXAS; AND DECLaR- ING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the attached Mutual Release of Claims in the matter of R.C. Small & Associates, Inc. v. The city of Denton, Texas, providing for the settlement and compromise of the litiga- tion now pending between the parties in the 68th District Court, Dallas County, Texas, Cause No. 91-3088-C is approved in accordance with its terms, and the City Manager is hereby authorized to execute same on the city's behalf. SECTION II. That this ordinance shall become effective immedi- atel~ upon its passage and. approv,a~ ~ PASSED AND APPROVED this the/~ day of , 1992. BOB CASTLEBERRY, MAYOR/ ~ / ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEC~AL-EORM: DEBPJ~ A. DRAyOVITCH~.~TY ATTORNEY STATE OF TEXAS COUNTY OF DENTON NO. 91-3088-C R.C. SMALL & ASSOCIATES, INC. § IN THE DISTRICT COURT VS. § 68TH JUDICIAL DISTRICT THE CITY OF DENTON, TEXAS § DALLAS COUNTY, TEXAS MUTUAL RELEASE OF CLAIMS THIS AGREEMENT, hereinafter referred to as the "release", is by and between R.C. Small & Associates, Inc., hereinafter referred to as "Small", and the City of Denton, Texas, hereinafter referred to as "City". This release concerns claims arising out of the construction of the Martin Luther King, Jr. Recreation Center, located in Denton, Texas, hereinafter referred to as "building". WHEREAS, City and Small entered into an agreement for the construction of the building; and WHEREAS, during the course of the building's construction and afterwards, certain problems arose which City attributed to construction defects and non-conformance with the construction contract; and WHEREAS, City and Small unsuccessfully attempted to resolve these problems without litigation; and WHEREAS, City refused to pay the final retainage until the problems were resolved; and WHEREAS, On March 15, 1991, Small filed the above styled and numbered lawsuit, still pending in the 68th District Court of Dallas County, Texas, to collect this retainage; and Mutual Release of Claims - Page 1 WHEREAS, city counterclaimed in the same lawsuit for damages arising out of claimed construction defects, non-conformance with the contract specifications and deceptive trade practices; and WHEREAS, city and Small, while denying the validity of the charges made by the other, understand that the claims asserted between them are doubtful and in dispute and have settled such disputes by compromise to avoid litigation and buy peace; and WHEREAS, City has agreed to pay Small $18,000 of the disputed retainage in settlement of this lawsuit; and WHEREAS, both parties agree to accept this settlement and to release the other from all claims raised in the lawsuit; and WHEREAS, bona fide disputes and controversies exist between the parties bo'th as to liability and the amount thereof, if any, and by reason of such disputes and controversies the parties hereto desire to compromise and settle this particular lawsuit, and intend that the full terms and conditions of this mutual release be set forth in this agreement; NOW, THEREFORE, for and in consideration of the premises and the mutual promises and covenants herein contained, and for other good and valuable consideration in the form of city's payment to Small the sum of Eighteen Thousand Dollars ($18,000.00), the receipt and sufficiency of which is hereby acknowledged by Small, both parties above named, for their predecessors, successors, assigns, heirs, executors, administrators, and legal representa- tives this day release and by these presents do release, acquit, and forever discharge the other and its predecessors, assigns, Mutual Release of Claims - Page 2 heirs, executors, administrators, and legal representatives, from any and all claims which were raised or could have been raised against each other by the parties to and in the above referenced lawsuit, except for the rights specifically reserved herein. It is further understood and agreed that this mutual release extends only to parties to the lawsuit referenced above, as specifically set forth herein. Nothing herein contained shall be construed as a release of any other person or entity, and all claims, demands and causes of action which City or Small may claim against any other person or entity, including specifically the architects and engineers responsible for the design of the building, are hereby expressly reserved. It is expressly understood and agreed that the terms hereof are contractual and not merely recitals and that the agreements herein contained and the consideration transferred is to compromise doubtful and disputed claims, avoid litigation, and buy peace, and that no payments made nor releases or consideration given shall be construed as an admission of liability, all liability being expressly denied. The parties hereto mutually and simultaneously by these presents authorize and direct their respective attorneys to execute and deliver for entry such instruments as may be necessary to obtain dismissal of the above-mentioned litigation, with prejudice to the rights of both parties. city warrants that the person signing on its behalf has read this Agreement and fully understands it to be a mutual release, and Mutual Retease of Claims - Page 3 further warrants that said person is of legal age, is legally competent to execute this Agreement, has legal authority to sign this document on behalf of the City of Denton, Texas, and does so of his or her own free will and accord without reliance on any representation of any kind or character not expressly set forth herein. Small warrants that the person signing on its behalf has read this Agreement and fully understands it to be a mutual release, and further warrants that said person is of legal age, is legally competent to execute this Agreement, has legal authority to sign this document on behalf of Small, and does so of his or her own free will and accord without reliance on any representation of any kind or character not expressly set forth herein. R.C. Small and Associates, Inc. City of Denton, Texas ~,c~ ~,o~ , ~ Manager APPROVED AS TO LEGAL FORM: Debra Adami Drayovitch, city Attorney city of Denton, Texas stev~h-i~i-'k~nnedy Attorney for R.C. Small and Associates, Inc. Mutual Re[ease of Claims - Page 4 STATE OF TEXAS COUNTY OF DENTON BEFORE ME , the undersigned, a Notary Public in and for said County and State, on this day personally appeared Lloyd V. Harrell, known to me to be the person who executed the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed; that he executed the same as his free and voluntary act and deed after having it fully explained to him, and after having read it fully, and after realizing the effect thereof to be a mutual release between the city of Denton, Texas and R.C. Small and Associates, Inc., for the limited matter or thing dealt with in the foregoing instrument; and that the same was executed by him without any threat, force, fraud, duress, or representation of any kind by any person whomsoever; and that he had the legal authority to bind the City of Denton, Texas to such an agreement; and that at the time of execution of the release, Lloyd V. Harrell was completely sober, sane, and capable of understanding the character of his acts and deeds and was in complete charge of all of his faculties and capable of executing this instrument and of understanding the significance of his acts. GIVEN under my hand and seal of office this ~day of h0tan~Public l~and for Denton .~A~ I County Texas Mutual Re[ease of Ctaims - Page 5 STATE OF TEXAS . . .W~c~ F~e$~d eot~ BEFORE ME , the undersigned, a Notary Public in and for sal~ County and State, on this day personally appeared ~obazt C. S~all,~ known to me to be the person who executed the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed; that he executed the same as his free and voluntary act and deed after having it fully explained to him, and after having read it fully, and after realizing the effect thereof to be a mutual release between the city of Denton, Texas and R.C. Small and Associates, Inc., for the limited matter or thing dealt with in the foregoing instrument; and that the same was executed by him without any threat, force, fraud, duress, or representation of any kind by any person whomsoever; and that he had the legal authority to bind R.C. Small & Associates, Inc. to such an agreement; and that at the time of execution of the release, Robert C. Small was completely sober, sane, and capable of understanding the character of his acts and deeds and was in complete charge of all of his faculties and capable of executing this instrument and of understanding the significance of his acts. ~/~day _~_~IVEN under my hand and seal of office this of __ ~ , 1992. / Mutual Release of Claims - Page 6