HomeMy WebLinkAboutItem 06.hSETTLEMENT AGREEMENT FOR LAWSUIT FILED BY JAMES & EMILY REITTER
August 6, 2012 City Council Meeting
Proposed Action
Staff recommends adoption of the following motion: Move to approve a settlement agreement
with James and Emily Reitter
Passage of this motion will result in the Reitters dismissing their lawsuit against the City for
actions taken by the City to allow certain uses of a property owned by Malt -O -Meal.
Overview
James and Emily Reitter sued the City of Lakeville and Malt -O -Meal shortly after the City
Council in March of 2011 granted consent to allow Malt -O -Meal to construct certain
improvements in an existing conservation easement on property owned by Malt -O -Meal. The
Reiter's home is adjacent to the conservation easement.
A mediation session was conducted on July 12, 2012 involving the City along with the League
of MN Cities Insurance Trust ( LMCIT), Malt -O -Meal, the Reiter's and the respective attorneys
mediated by retired Hennepin County Judge Myron Greenberg. A proposed settlement
agreement was reached at the end of this session. As part of the settlement agreement, the
City agrees to pay up to 25% of the Reiter's' legal fees not to exceed $15,000 in exchange for
dismissal of the lawsuit. By entering into this agreement, the City does not admit to any
liability and expressly denies any liability in this claim.
The City Council was advised of the proposed settlement agreement by Attorney George Hoff
who represented the City and the LMCIT on this case during a closed meeting on August 30
Mr. Hoff as well as City Staff and LMCIT recommend approval of the settlement agreement.
Primary Issues to Consider
• What is the advantage of agreeing to a mediated settlement? The City and LMCIT
would incur significant additional cost if this matter were to go to trial with no
assurance of the outcome.
Supporting Information
• Proposed Settlement Agreement between the City of Lakeville and James and Emily
tter.
David L. Olson
Community and Economic Development Director
c: George Hoff, Hoff, Barry & Kozar
Mark Rossow, LMCIT
Item No.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF DAKOTA FIRST JUDICIAL DISTRICT
James Reitter and Emily Reitter,
Individually and on behalf of the
State of Minnesota,
v.
3. Additional Terms:
Plaintiffs,
MaIt -O -Meal Company, and
City of Lakeville, Minnesota,
Defendants.
2. Payment by Defendant shall be made in the following manner:
G:\WPDATA 13200- 3081Pleadings \Settlement Agr.- 2712.doc
Case Type: Other Civil
Court File No: 19HA -CV -11 -4791
SETTLEMENT AGREEMENT
This matter was mediated on July 12, 2012, with Myron S. Greenberg serving as
mediator. The case was settled upon the following terms and conditions:
1. Defendant City of Lakeville will pay to Plaintiffs, and Plaintiffs will accept in full
settlement of any and all claims against Defendant, in an amount not to exceed Fifteen Thousand
($15,000.00) dollars (see 3(b) below).
• Upon receipt of the Release and Stipulation referenced below in Paragraph 4; and
• proof of attorneys' fees set forth below in Paragraph 3(b).
(a) This Agreement is contingent upon approval by the City Council of the City of
Lakeville, which will consider the matter on August 6, 2012.
(b) Plaintiff shall provide the City with copies of attorneys' fee payments and costs,
and the amount of City's payment set forth above shall be the lesser of twenty -five (25 %)
percent of fees and costs, or Fifteen Thousand ($15,000.00) dollars.
(c) The City, by entering into this Agreement, is not admitting liability in any
manner, and expressly denies any liability to Plaintiffs.
(d) The City makes no characterization as to the nature of the payment and the
Plaintiffs will defend and indemnify the City with respect to any tax liability that may result from
payment.
(e) The attorneys for the parties shall request that the trial and pre -trial dates be
extended by forty -five (45) days.
4. Parties will execute appropriate mutual releases and Plaintiff's counsel will execute an
appropriate dismissal with prejudice and cause it to be filed with the Court.
5. The mediator will notify the Court that a tentative settlement has been reached, subject to
City Council approval.
This is a binding and enforceable agreement and contract. Pursuant to Minnesota Statutes
Section §572.35, the parties are hereby advised that (a) the mediator has no duty to protect their
interests or provide them with information about their legal rights; (b) signing a mediated
settlement agreement may adversely affect their legal rights; and (c) they should consult with an
attorney before signing a mediated settlement agreement if they are uncertain of their rights.
Dated: July 12, 2012
/s/
Plaintiff
/s/ /s/
Defendant
City of Lakeville
2
/s/
Attorney for Plaintiff
Attorney for Defendant