Report to Mayor and City Council
Tuesday, February 21, 2017
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF A SETTLEMENT AGREEMENT & GENERAL RELEASE OF ALL CLAIMS WITH SIALIC CONTRACTORS CORPORATION DBA SHAWNAN (CITY COUNCIL)
Body
I. SUMMARY
Presented for consideration is an agreement to settle and dismiss, with prejudice, certain litigation entitled Sialic Contractors Corporation dba Shawnan v. City of Carson, et al., Los Angeles Superior Court Case No. TC028350 (the "Lawsuit"), filed on January 15, 2016.
On September 22, 2014, the City of Carson ("City") and Sialic Contractors Corporation dba Shawnan ("Shawnan") entered into a public works contract for the repaving of Avalon Blvd. from Dominguez St. to Victoria St. Shawnan performed additional work to complete the project, including but not limited to the removal of petromat found below the pavement's surface. A dispute arose between the City and Shawnan regarding the authorization or lack thereof for Shawnan's performance of additional work and the amount owed for said work. Shawnan filed the Lawsuit against the City for breach of contract, seeking damages in excess of $479,447.01 in addition to the release of the retention proceeds. As a result of mediation, the parties have reached a settlement. The City agrees to pay Shawnan $325,000.00 as the settlement amount for the Lawsuit and will release the retention proceeds upon the acceptance of the project by the City Council.
The dismissal and settlement of the Lawsuit is conditioned upon City Council approval of the settlement agreement.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the terms and conditions in the attached SETTLEMENT AGREEMENT & GENERAL RELEASE OF ALL CLAIMS.
2. AUTHORIZE the City Manager to execute the same following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate and consistent with the requirements of law.
IV. BACKGROUN...
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