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1992-031washna ORDINANCE NO ~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SETTLEMENT AGREEMENT AND RELEASE BETWEEN THE CITY OF DENTON AND WASHINGTON NATIONAL CASUALTY, AND DECLARING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the attached Settlement Agreement and Release with PreDudlce of all Pending and Future Claims between the City of Denton and Washington National Casualty, providing for the settlement and compromise of the litigation now pending between the parties before the United States District Court for the Eastern District of Texas, Sherman approved in accordance with its terms The City Manager is authorized to execute the agreement and all other documents and take such action as is necessary to comply with the terms of said agreement ~ That this ordinance shall become effective immedi- ately upon its passage and approval PASSED AND APPROVED this the ~day-- of February, 1992 BOB CASTLEBERRY, MAY ATTEST JENNIFER WALTERS, CITY SECRETARY DEBRA A DRAYOVITCH, CITY ATTORNEY IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION THE CITY OF DENTON, Plaintiff, § VS § C A NO 4 91CV61 WASHINGTON NATIONAL INSURANCE COMPANY, § Defendant § SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release (the "Agreement") is entered into by and between Washington National Insurance Company ("Washington National") and the City of Denton, Texas ("Denton") on the date last acknowledged below WI TN ES SETH WHEREAS, Denton established a self-funded employee welfare benefit plan providing comprehensive medical expense benefits to Denton's employees, WHEREAS, Denton solicited bids to provide individual stop-loss and aggregate stop-loss insurance for the Plan, WHEREAS, by City Ordinance number 87-177 Denton accepted Washington Natlonal's proposal for the stop-loss insurance and authorized the expenditure of funds for the insurance coverage, SETTLEMENT AGREEMENT AND RELEASE - Page 1 WHEREAS, an individual stop-loss and aggregate stop-loss agreement (the "Stop-Loss Agreement") was entered into between Washington National and Denton, WHEREAS, a dispute arose between Washington National and Denton as to the terms and provisions of the Stop-Loss Agreement, WHEREAS, Denton submitted lndlvldual and aggregate stop loss claims to Washington National under the Stop-Loss Agreement, WHEREAS, Washington National denied certain claims and certain expenses for which claims had been submitted to it under the Stop- Loss Agreement, WHEREAS, a dispute arose between Denton and Washington National as to the respective obligations of the parties to the Stop-Loss Agreement regarding the claims submitted and amounts sought for reimbursement, WHEREAS, on or about March 8, 1991, Denton filed suit in the 211th Judicial Dlstrlct Court of Denton County, Texas, said action being numbered 91-30147-211 on the docket of the 211th Judlclal Dlstrlct Court, WHEREAS, on Aprll 5, 1991, Washington National removed the action to the Un~ted States District for the Eastern D~strlct of Texas, Sherman Dlvlslon there bearing civil actlon number 4 91CV61 on the docket of the United States Dlstrlct Court (the "Lawsuit"), SETTLEMENT AGREEMENT AND RELEASE - Page 2 WHEREAS, in the Lawsuit, Denton sought damages for alleged breach of contract, breach of the duty of good faith and fair dealing and alleged violations of the Texas Deceptive Trade Practices Consumer Protection Act, Tex Bus Com Code § 17 41 et seq, (the "DTPA") and Tex Ins Code Art 21 21, and sought to recover actual damages, punitive damages, consequential damages, statutory damages, attorney's fees, interest, and costs of court, WHEREAS, Washington National denied Denton's allegations in the Lawsuit, WHEREAS, Washington National and Denton desire to settle and resolve the controversies herein between them, and WHEREAS, Washington National and Denton intend that the full terms and conditions of the compromise and settlement be set forth in this Agreement NOW, THEREFORE, in cons~deratlon of the promises and covenants herein set forth, and for other good and valuable conslderatlon, it is AGREED AS FOLLOWS 1 payment of $175,000 00 Washington National has herewith paid to Denton the total sum of $175,000 00 by and through Washington Natlonal's check no 010634 in the amount of $83,000 00, check no 0106332, in the amount of $83,000 00 and check no 0106333 in the amount of $9,000 00, all made payable to "The City of Denton, Texas and its attorney, R William Wood" (the SETTLEMENT AGREEMENT AND RELEASE - Page 3 "Settlement Draft") Denton expressly acknowledges and represents that it has received the Settlement Draft as consideration for this Agreement 2 Release bY De~to~, Denton, for ltself and lts legal representatives, successors, assigns, employees, agents, and citizens, hereby RELEASES, ACQUITS, AND FOREVER DISCHARGES Washington National, and ~ts legal representatives, successors, assigns, affiliated companies, employees, officers, shareholders, directors, and attorneys from any and all claims, demands, debts, and causes of action, known or unknown, against Washington National arlslng out of or relating to (1) the Stop-Loss Agreement and any version thereof including all amendments, supplements and addenda thereto, (2) any and all individual or aggregate stop-loss claims or claims of any nature submitted or which could have been submitted by Denton under the Stop-Loss Agreement speclflcally including, but without l~mltatlon, all claims lncurred, paid, handled, den~ed, or administered in any manner by Denton or its employees, representatives, or agents for the period from October 1, 1987 through October 31, 1988, (3) any and all claims arlslng out of or relating to the Plan, and (4) any and all claims asserted or assertable in the Lawsuit 3 Release bv Wash~naton National Washington National, for Itself and its legal representatives, successors, assigns, employees, officers, directors, shareholders, and attorneys SETTLEMENT AGREEMENT AND RELEASE - Page 4 RELEASES, ACQUITS, AND FOREVER DISCHARGES Denton, and its employees, agents, successors, legal representatives, assigns, and citizens from any and all claims, demands, debts, and causes of action, known or unknown, against Denton arising out of or relating to (1) the Stop-Loss Agreement and any version thereof Including all amendments, supplements and addenda thereto, (2) any claim for past due premlum on the Stop-Loss Agreement, and (3) and all claims asserted or assertable ~n the Lawsuit 4 RePresentation and Indemnification Washington National and Denton represent to one another that they are the owners and holders of the clalms belng released herein and that they have not assigned any claims belng released herein and in that regard agree to indemnify and hold one another harmless from any loss, cost or expense lncludlng, wlthout l~mltat~on, attorney's fees, from any claim that may be asserted by, through or under them 5 NO Prequ~%ce The releases by the part~es hereto of one another shall be wlthout prejudice, without waiver of, and without any affect whatsoever upon any claim which Washington National or Denton may have against any other party 6 Dlsmlssal Washington National and Denton agree to dismiss their claims, demands, debts, and causes of action asserted against one another in the Lawsult WITH PREJUDICE, with costs taxed against the part~es ~ncurrlng them SETTLEMENT AGREEMENT AND RELEASE - Page 5 7 Blndina Effect It is understood and agreed that thas Agreement shall be banding upon and inure to the benefit of Washington Nataonal and Denton and thear respectave helrs, employees, agents, representatives, successors, assigns, employers, darectors, officers, shareholders, catazens and attorneys 8 No Admission Payment of the consaderataon herein is merely a settlement of disputed claims and is not to be considered an admlsslon of llablllty, the same being expressly den~ed 9 Choace of Law The partaes mutually agree that thls Agreement shall be construed and enforced under the laws of the State of Texas 10 No Other Aareements It as understood and agreed that thas Agreement contains the entire agreement between Washlngton National and Denton and supersedes any and all praor agreements, arrangements, or understandings between the parties relatlng to its subject matter Thls Agreement cannot be changed or termlnated orally 11 CouDterDarts The Agreement may be signed in multiple counterparts, each of whlch shall be an original IN WITNESS WHEREOF, the parties have executed thas Agreement on the date acknowledged below SETTLEMENT AGREEMENT AND RELEASE - Page 6 WASHINGTON NATIONAL INSURANCE COMPANY £ Its /V~ce Pres~_dent /~d Counsel STATE OF Illinois COUNTY OF Cook BEFORE ME, the undersigned Notary Public, in and for the State of Illinois , on this day personally appeared Gerl M Gaughan , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same in the capacity therein stated for the purposes and consideration therein expressed GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 27th day of OFFIC,AL 0M_ IROSE M KIRONKOW ~ Notary Publt~c in and for NOTARY PUBLIC STATE OF ILLINOIS, the State of Illinois ISS[ON EXPIRES 1/16/94} Rose Iv[ Kronkow Printed Name of Notary My Commission Expires January 16, 1994 SETTLEMENT AGREEMENT AND RELEASE - Page 7 THE CITY OF DENTON ~~ ~~~ Mayor C~retary - (Printed' Name) C W G T STATE OF TEXAS COUNTY OF DENTON BEFORE ME, the undersigned Notary Public, in and for the State of Texas, on this day personally appeared ~0~ ~.~E~ , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same in the capacity therein stated for the purposes and consideration therein expressed GIVEN UNDER MY HAND AND SEAL OF OFFICE, this /~ day of O~~_ , 1992  ~ Botary ~ic in and for the State of Texas I'~ ~-.''-"-~'"'- Printed Name of Notary My Commission Expires SETTLEMENT AGREEMENT AND RELEASE - Page 8 APPROVED AS TO LEG~AL FORM ~ty Attorney U (Printed Name) ~/ SETTLEMENT AGREEMENT AND RELEASE - Page 9