2007-086ORDINANCE NO. OO °J-~8
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 Euriyue J Villagomez v. David Owen Frisby, et al., Cause Number
2005-60283-393, currently pending in the 393° 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 of ~r~ l , 2007.
'/
PERR . McNEILL, MAYOR
SpOur [bcuments\Ordinanccs\0]\villagomcz seulemcm u~diwnceda
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ~ ii.i'
APPR ~ ED AS LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
Page 2
CCS. 7909
CAUSE N0.2005-60283-393
ENRIQUE J. VILLAGOMEZ §
V. §
DAVID OWEN 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. §
IN THE DISTRICT COURT
DENTON COUNTY, TEXAS
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
acrd controversy between each other.
2. The subject matter of this Mutual Release is the civil suit ("Suit")brought by
VILLAGOMEZ against DAVH) OWEN 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")fordamages 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 VILLAGOMEZagrees topaytwo-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 attomeys' fees or expenses and that DENTON will not 6e liable or responsible now or in the
future for the payment of attomeys' 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. Lnsoa Cons § 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 dollazs 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 ofthe injuries suffered
by VILLAGOMEZ in the accident made the basis of the Suit. VILLAGOMEZ agrees to said
release of futwe indemnity benefits EVEN IN THE EVENT THE 5940 452 63 ADVANCE
AGAINST FUTURE BENEFITS IS EXHAUSTED PURSUANT TO THE TEXAS LABOR
CODE. VILLAGOMEZandDENTONagreeVILLAGOMEZdoesnotintendtowaivehistight,
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 EXIiAUSTED 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 maybe executed in multiple originals.
SIGNED this , day of , 2007.
ENRIQUE J. VILLAGOMEZ
J. JEFFREY SPRINGER
State Baz 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, Irnown to me to be the person whose name is subscribed to the foregoing
instrument, who, a8er being duly sworn, on oath stated that she has read the above and foregoing
Mutual Release and aclrnowledged 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
2007.
Notary Public in and for
The State of Texas
My Commission Expires:
STATE OF TEXAS
COUNTY OF DENTON
BEFORE ME, the undersigned Notary Public iri and for the State of Texas, on this day
GEORGE C. CAMPBELL
personally appeared ,Authorized Representative for CITY OF DENTON,
lmown to me to be the person whose name is subscribed to the foregoing instrument, who, after
being duly sworn, 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 ~ day of
2007.
. ~~4:1'{'~ecy JANE E. RICHARDSON
~~ sr '^4 Notary Public, State of Texas
~: s. ! ; My Commisslon Expires
I',%~r, '` June Z7, 2009
My Commission Expires:
Q( l2~/09
~~ ~ ~~~~~
N ary Public in and for
The State of Texas
SETTLEMEI~IT PROPOSAL
Yi//aaomer r. Hariicaee Il~aste Systems, et a/
TOTAL SETTLEMENT $1,900,000.00
Medical
Indemnity
`Legal
`Other
Total
$339,174.93
$70,717.92
$40,019.29
$19,461.30
$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°/a)
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
INCURRED BENEFITS AS OF
11-Apr-07
($1,654,064.29 - $713,611.66)
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