HomeMy WebLinkAbout000564 Original ContractSETTLEMENT AGREEMENT
City of Port Angeles
Record #000564
THIS SETTLEMENT AGREEMENT "Agreement is entered into as of the date of the
last signature below by and between Krei Architecture "Krei and the joint venture of the City
of Port Angeles "Port Angeles and Clallam Transit "Clallam Transit jointly referred to as
the Owner, for the purpose of resolving certain outstanding issues relating to the contract
between the Owner and Krei for design and construction administration for a transit center
project in the City of Port Angeles.
WHEREAS, Port Angeles and Clallam Transit entered into a joint venture for the
construction of a new transit center in downtown Port Angeles, which was referred to as the Port
Angeles International Gateway Transportation Center Project "Gateway Project" and/or
"Project") and included a new transit area for bus loading and unloading, an open air pavilion
and an underground parking garage; and
WHEREAS, the joint venture entered into a contract ("Contract") with Merritt and
Pardini, predecessor to Krei, to undertake the design of the transit center and to provide
construction administration for the Project; and
WHEREAS, Owner initiated claims against Krei for breach of the Contract arising from
unanticipated costs the Owner allegedly incurred due to change orders on the Gateway Project,
which it alleged were the result of actions and inactions on the part of Krei employees and its
consultant Bright Engineering, Inc. "Bright during the design and construction stages of the
Gateway Project; and
WHEREAS, Krei initiated a claim against the Owner for unpaid fees billed for its
services during the term of the Project; and
WHEREAS, the Owner, Krei and Bright, referred to collectively herein as (the "Parties
engaged in mediation with Henry Jameson and have reached an agreement to settle all issues
relating to the Project, other than claims not known to the Owner or not reasonably discoverable
by it as of the date of this Settlement Agreement. A copy of the CR 2A Memorandum of
Settlement drafted by Mr. Jameson and signed by the Parties at the end of the Mediation, is
attached as Exhibit A and by this referenced incorporated herein.
NOW, THEREFORE, for mutual consideration and pursuant to the terms set forth in this
Agreement, Krei, Bright and Owner agree as follows:
1. No later than the day following full execution of this Settlement Agreement by
the parties, Krei or its insurance carrier shall pay to the trust account of the law firm of Ryan
Swanson Cleveland, PLLC the sum of $114,000.
2. No later than January 7, 2012 or the day following full execution of this
Settlement Agreement by the parties, whichever is later, Bright or its carrier shall pay to the trust
account of the law firm of Ryan Swanson Cleveland, PLLC the sum of $82,666.66.
3. The Parties direct the law firm of Ryan Swanson Cleveland, PLLC to disburse,
after verifying that the checks have cleared the bank, the amount of $146,166.66 from such
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deposits to the City of Port Angeles, the amount of $43,000 to Krei Architecture and the amount
of $7,500 to Bright Engineering, Inc.
4. Except for the payments called for by paragraph 4 above, Krei Architecture and
Bright Engineering, Inc. release all claims to and for payment of fees and costs in any way
relating to the Project, including the total fees currently claimed of $78,281.62, together with all
accrued interest on those fees at the rate of 8% under the Contract between the City of Port
Angeles and Krei Architecture.
5. The parties agree that upon payment of the sums described above in paragraphs 2,
3 and 4, they release and discharge each other from any and all claims in any way relating to the
Gateway Project, except that the scope of this release by the Owner shall be limited to claims
known to it or reasonably discoverable by it as of the date of this Settlement Agreement.
6. Should disputes arise in any way regarding this Settlement Agreement, the Parties
agree that such disputes shall be resolved by Henry C. Jameson acting with the powers of an
arbitrator under RCW 7.04A.
7. Neither party shall disparage the other in connection with the work on the
Gateway Project and the parties shall answer questions regarding the status of the dispute
between them by stating that the dispute has been amicably resolved by a settlement. Nothing in
this paragraph or Settlement Agreement shall limit either the City of Port Angeles's or Clallam
Transit's ability and obligation to respond to public record requests.
8. This Agreement is binding upon, and shall benefit, each of the Parties above
named, together with all partners, parent and subsidiary entities of those parties and partners, as
well as all predecessors and successors of any of the foregoing, along with all affiliates of any of
the foregoing, and all owners, officers, directors, and employees of any of the foregoing, and
their spouses and marital communities, together with all insurers, all attorneys, all successors,
heirs, assigns, or transferees, direct or remote, of any of the foregoing.
9. The releases, other conditions and the consideration identified herein are given in
full settlement and compromise of doubtful and disputed claims. It is expressly understood and
agreed that none of the Parties or any of their respective insurers, respective owners, spouses,
agents, employees, independent contractors, representatives, partners, parent entities, subsidiaries
or affiliates, admits any liability to each other by entering into this Settlement Agreement, such
Liability being expressly denied, and the execution or performance of this Settlement Agreement
shall not be for any purpose construed as an admission of liability.
10. This Settlement Agreement contains all the agreements and commitments of the
Parties relating to the claims referenced in this Settlement Agreement and included in the
releases. This Settlement Agreement is intended by the Parties as a final expression of their
agreement and, therefore, incorporates all negotiations of the Parties and is the entire agreement
of the Parties. This Agreement supersedes and replaces all prior agreements, except to the extent
set forth in attached Exhibit A. This Settlement Agreement may not be amended, waived or
modified in any way without the prior written consent of all Parties.
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11. In entering into this Settlement Agreement, each Party hereto represents that it has
relied upon the advice of an attorney of its own choice concerning the legal consequences of this
Settlement Agreement; that the terms of this Settlement Agreement have been completely read
and explained to each Party by its attorneys; and that the terms of this Agreement are fully
understood and voluntarily accepted.
12. The recitals are included as a part of this Settlement Agreement and incorporated
herein for that purpose.
13. Each Party represents and warrants that no other person or entity has, or has had,
an interest in the claims, demands, obligations, or causes of action referred to in this Settlement
Agreement and that each Party has the sole right and exclusive authority to execute this
Agreement.
14. This Settlement Agreement shall be construed in accordance with the laws of the
State of Washington, notwithstanding the operation of any conflict or choice of law statutes or
decisional law to the contrary.
15. The Parties agree that they may plead this Settlement Agreement as a complete
bar and defense to all actions which may be commenced by or on behalf of any of the Parties
against any of the other Parties with respect to claims which are released under the terms of this
Settlement Agreement.
16. The Parties agree that any dispute(s) as to the terms of this Settlement Agreement
shall be resolved by Henry C. Jameson acting with the powers of an arbitrator under RCW
7.04A. If either Party brings an issue before Mr. Jameson regarding the terms of this Settlement
Agreement or brings any action to enforce such Party's rights hereunder, the prevailing party
shall be entitled to recover reasonable attorneys' fees and costs incurred in connection with such
action, whether before Mr. Jameson, in pretrial, trial, arbitration, appeal in any proceeding
including bankruptcy, or in any action to enforce a judgment or award.
17. This Agreement may be executed and delivered in separate counterparts, each of
which, when all are so executed and delivered, shall be deemed an original and together shall
constitute a single instrument.
Krei Architecture
By: 4.-a,i, By:
Date: "2 Z Date:
By:
Date:
Bright Engineering, Inc.
3
City of Port Angeles /Clallam Transit
11. In entering into this Settlement Agreement, each Party hereto represents that it has
relied upon the advice of an attorney of its awn choice concerning the legal consequences of this
Settlement Agreement; that the terms of this Settlement Agreement have been completely read
and explained to each Party by its attorneys; and that the terms of this Agreement are fully
understood and voluntarily accepted.
12. The recitals are included as a part of this Settlement Agreement and incorporated
herein for that purpose.
13. Each Party represents and warrants that no other person or entity has, or has had,
an interest in the claims, demands, obligations, or causes of action referred to in this Settlement
Agreement and that each Party has the sole right and exclusive authority to execute this
Agreement.
14. This Settlement Agreement shall be construed in accordance with the laws of the
State of Washington, notwithstanding the operation of any conflict or choice of law statutes or
decisional Iaw to the contrary.
15. The Parties agree that they may plead this Settlement Agreement as a complete
bar and defense to all actions which may be commenced by or on behalf of any of the Parties
against any of the other Parties with respect to claims which are released under the terms of this
Settlement Agreement.
16. The Parties agree that any dispute(s) as to the terms of this Settlement Agreement
shall be resolved by Henry C. Jameson acting with the powers of an arbitrator under RCW
7.04A. If either Party brings an issue before Mr. Jameson regarding the terms of this Settlement
Agreement or brings any action to enforce such Party's rights hereunder, the prevailing party
shall be entitled to recover reasonable attorneys' fees and costs incurred in connection with such
action, whether before Mr. Jameson, in pretrial, trial, arbitration, appeal in any proceeding
including bankruptcy, or in any action to enforce a judgment or award.
17. This Agreement may be executed and delivered in separate counterparts, each of
which, when all are so executed and delivered, shall be deemed an original and together shall
constitute a single instrument.
Krei Architecture
By. By.
Date: Date:
Bright Engineering, Inc.
3
City of Port Angeles/Clallam Transit
11. In entering into this Settlement Agreement, each Party hereto represents that it has
relied upon the advice of an attorney of its own choice concerning the legal consequences of this
Settlement Agreement; that the terms of this Settlement Agreement have been completely read
and explained to each Party by its attorneys; and that the terms of this Agreement are fully
understood and voluntarily accepted.
12. The recitals are included as a part of this Settlement Agreement and incorporated
herein for that purpose.
13. Each Party represents and warrants that no other person or entity has, or has had,
an interest in the claims, demands, obligations, or causes of action referred to in this Settlement
Agreement and that each Party has the sole right and exclusive authority to execute this
Agreement.
14. This Settlement Agreement shall be construed in accordance with the laws of the
State of Washington, notwithstanding the operation of any conflict or choice of law statutes or
decisional law to the contrary.
15. The Parties agree that they may plead this Settlement Agreement as a complete
bar and defense to all actions which may be commenced by or on behalf of any of the Parties
against any of the other Parties with respect to claims which are released under the terms of this
Settlement Agreement.
16. The Parties agree that any dispute(s) as to the terms of this Settlement Agreement
shall be resolved by Henry C. Jameson acting with the powers of an arbitrator under RCW
7.04A. If either Party brings an issue before Mr. Jameson regarding the terms of this Settlement
Agreement or brings any action to enforce such Party's rights hereunder, the prevailing party
shall be entitled to recover reasonable attorneys' fees and costs incurred in connection with such
action, whether before Mr. Jameson, in pretrial, trial, arbitration, appeal in any proceeding
including bankruptcy, or in any action to enforce a judgment or award.
17. This Agreement may be executed and delivered in separate counterparts, each of
which, when all are so executed and delivered, shall be deemed an original and together shall
constitute a single instrument.
Krei Architecture City of Port Angeles /Clallam Transit
By:
Date:
Bright Engineering, Inc.
By:
Date:
3
By: a.
Date: I l (-11 i.3
CR 2A MEMORANDUM OF SETTLEMENT
1. No later than January 7, 2012, Bright or its carrier shall pay to the trust account
of the law firm of Ryan Swanson Cleveland PLLC the sum of $82,666.66.
2. No later than December 30, 2012, Krei Architecture or its carrier shall pay to the
trust account of the law firm of Ryan Swanson Cleveland PLLC the sum of $114,000.
3. The parties direct the law firm of Ryan Swanson Cleveland PLLC to disburse,
after verifying that the checks have cleared the bank, the amount of $146,166.66 from
such deposits to the City of Port Angeles, the amount of $43,000 to Krei Architecture
and the amount of $7500 to Bright Engineering, inc.
4. Except for the payment called for by paragraph 3 above, Krei Architecture and
Bright Engineering release all claims to payment of the total fees of $78,281.62,
together with all accrued Interest at the rate of 8% under the contract between the City
of Port Angeles and Krei Architecture.
5. The parties agree that upon payment of the sums described above they release
and discharge each other from any claims relating to the Gateway Transportation
Center Project. The scope of this release by the City shall be limited to claims known to
it or reasonably discoverable by it as of the date of this Memorandum.
6. The parties may prepare more formai settlement agreements to document the
settlement so long as such agreements do not change the above business terms.
Should disputes arise regarding the wording of any such further settlement agreements,
the parties agree that such disputes shall be resolved by Henry C. Jameson acting with
the powers of an arbitrator under RCW 7.04A.
7. This Agreement is subject to the approval of the City Council of the City of Port
Angeles. The City Manager and the City Attorney shall recommend such approval.
8. Neither party shall disparage the otner in connection with the work on the
Gateway Transportation Center Project. The parties shall answer questions regarding
the status of the dispute between them by stating that the dispute has been amicably
resolved by a settlement.
DATED this 10th day of December, 2012.
CITY OF PORT ANGELES
BY:
KREI ARCHITECTURE
BRIGHT? INEERING, INC.
By: t/
Roger Myklebust
RYAN
SWANSON
Lawyers since 1897
VIA FEDERAL EXPRESS
William E. Bloor
City Attorney
City of Port Angeles
321 E. 5th
P. 0. Box 1150
Port Angeles, WA 98362
Dear Bill:
RAM:ddj
Enclosures
cc: Stephen L. Nourse, Esq.
Kenneth G. Yalowitz, Esq.
Coa Mernher of TAGLaw,
a wo netwo ti of law faros
RECE VED
FEB 1 2013
PORT ANGELES
LEGAL DEPARTMENT
January 30, 2013
Re: City of Port Angeles Krei Architecture Bright Engineering
l.nclosed is a completely executed Settlement Agreement between the parties and our
tirm's check in the sum of $146,166.66, representing City of Port Angeles' portion of the
settlement.
Very truly yours.
Roger Myklebust
Ryan, Swanson Cleveland, PLLC
1201 Third Avenue, Suite 3400
Seattle, WA 98101 -3034
206 464 4224 I Fax 206 583 0359
Toll -free 800 458 5973
www ryanswansonlaw com
direct dial 206.654.2220
direct fax 206.652.2920
myklebust @ryanlaw.com
Ref No 780627 01/007488 00011
Roger Myklebust
Lawyers since 1897
VIA HAND DELIVERY
Stephen L. Nourse, Esq.
Carney, Badley, Spellman
701 5th Ave., Suite 3600
Seattle, WA 98104
Dear Steve:
RAM:ddj
Enclosures
Re: City of Port Angeles Krei Architecture Bright Engineering
Enclosed is a completely executed Settlement Agreement between the parties. We have
Federal Expressed our firm's check in the sum of $43,000.00, representing your client's portion
of the settlement, to Krei Architecture directly pursuant to your instructions.
cc: William Bloor
Kenneth G. Yalowitz, Esq.
Steve Aisaka at Parametrix
Charter Member of TAGLaw,
a worldwide network of law firms
January 31, 2013
Very truly yours,
Roger Myklebust
Ryan, Swanson Cleveland, PLLC
1201 Third Avenue, Suite 3400
Seattle, WA 98101 -3034
206 464 4224 I Fax 206 583 0359
Toll -free 800 458 5973
www ryanswansonlaw com
direct dial 206 654.2220
direct fax 206.652.2920
myklebust@ryanlaw.com
Ref No 696902 02/007488 00011
Roger Myklebust
RYAN'=
SWANSO
Lawyers since 1 897
VIA HAND DELIVERY
Kenneth G. Yalowitz, Esq.
Green Yalowitz
1420 5th Ave., Suite 2010
Seattle, WA 98101
Re: City of Port Angeles Krei Architecture Bright Engineering
Dear Ken:
Enclosed is a completely executed Settlement Agreement between the parties and our
fine's check in the sum of $7,500.00, representing your client's portion of the settlement.
RAM:ddj
Enclosures
cc: William Bloor
Stephen L. Nourse, Esq.
Charter Member of TAGLaw
a worldwide network of law firms
January 30, 2013
Very truly yours,
Roger Myklebust ?2Q4
C o
Ryan, Swanson Cleveland, PLLC
1201 Third Avenue, Suite 3400
Seattle, WA 98101 -3034
206 464 4224 i Fax 206 583 0359
Toll -free 800.458 5973
www.ryanswansonlaw com
direct dial 206.654.2220
direct fax 206.652.2920
myklebust@ryanlaw.com
Ref No 696902 02/007488 00011