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Home My WebLink About10/6/2004 - STAFF REPORTS (22) J I WOODRUFF, SPRADLIN & SMART A Professional Corporation 2 DANIEL K. SPRADLIN, Esq. - State Bar No. 82950 MARK M. MONACHINO, Esq. — State Bar No. 145090 3 701 South Parker Street, Suite 8000 Orange, California 92868-4760 4 Telephone: (714) 558-7000 Facsimile: (714) 835-7787 5 6 Attorneys for Defendants CITY OF MORENO VALLEY, CITY OF PALM DESERT, CITY OI SIMI VALLEY, CITY OF PALM SPRINGS, CITY OF LA QUINTA, and CITY OF HEMET 7 8 9 SUPERIOR COURT FOR THE STATE OF CALIFORNIA 10 FOR THE COUNTY OF RIVERSIDE, INDIO BRANCH 11 12 PUBLIC ENTITY RISK MANAGEMENT ) CASE NO.: INC 038382 AUTHORITY, ) s 13 ) ASSIGNED FOR ALL PURPOSES TO N <� Plaintiff, ) THE HONORABLE LAWRENCE W. FRY 14 ) DEPARTMENT: 2J V. ) 15 ) DATE ACTION FILED: September 26, 200: CITY OF MORENO VALLEY, CITY OF ) 16 PALM DESERT, CITY OF SIMI VALLEY, ) CITY OF PALM SPRINGS, CITY OF LA ) STIPULATION AND AGREEMENT RE 17 QUINTA, CITY OF HEMET, COACHELLA ) PAYMENT OF PERMA ASSESSMENTS F VALLEY ASSOCIATION OF ) FORMER MEMBERS 18 GOVERNMENTS, CITY OF ROLLING ) HILLS, and DOES 1-50, ) 19 ) Defendants. ) 20 ) 21 22 STIPULATION AND AGREEMENT 23 WHEREAS, on October 8, 2003, Plaintiff Public Entity Risk Management Authorit 24 ("PERMA") filed a complaint for declaratory relief seeking an order from the court requirinc 25 the City of Moreno Valley, City of Palm Desert, City of Simi Valley, City of Palm Springs, City 26 of La Quinta, and City of Hemet (collectively, "Defendants") pay any premium surcharge tha 27 PERMA may impose on Defendants to reimburse it for any potential liability or liability 28 incurred by PERMA arising out of litigation between the City of Desert Hot Springs and Silver STIPULATION AND AGREEMENT RE PAYMENT OF PERMA ASSESEMENT BY FORMER MEMBERS OTrovBlLocal 1 1 Sage Partners, Ltd. ("Silver Sage"); 2 WHEREAS, as a member of a Joint Powers Agreement ("JPA") that governs PERM, 3 the City of Desert Hot Springs submitted Silver Sage's claims made against it to PERMA t 4 coverage under the Master Memorandum of Liability Coverage ("Memorandum 5 Coverage"), but PERMA denied coverage, which denial was confirmed by a bindir 6 arbitration ruling on June 3, 1993; 7 WHEREAS, Silver Sage obtained a jury award against the City of Desert Hot Sprinc 8 in the approximate amount of $3 million and has attempted to collect the judgment, now 9 excess of $8.5 million (including interest and Plaintiff's attorneys' fees), from PERN 10 asserting that the Memorandum of Coverage provides coverage for Silver Sage's award; 11 WHEREAS, PERMA and Defendants, as former members of PERMA, have incurr( 12 substantial attorneys' fees and costs in defending the claims made by Silver Sage to colle a s 13 on its judgment from PERMA; w 14 WHEREAS, PERMA acknowledges that Defendants provided valuable profession a�Eo 3 15 services and assisted in the coordination of the defense against Silver Sage's attempt 16 collect from PERMA the judgment against the City of Desert Hot Springs; 17 WHEREAS, PERMA contends that Defendants remain partially liable and responsit 18 for any liability, including its attorneys' fees and costs, incurred by PERMA as a result 19 Silver Sage's collection attempts; 20 WHEREAS, Defendants deny PERMA's right to declaratory relief, or any liability 21 PERMA under the JPA or Memorandum of Coverage, and particularly deny PERMA's right 22 recover any attorneys' fees and costs incurred by PERMA arising out of Silver Sage's eff( 23 to collect from PERMA the judgment against the City of Desert Hot Springs; 24 WHEREAS, in or about March 2004, PERMA assessed each of the Defendar 25 certain sums purportedly representing their proportionate share of the deficit for the covera( 26 year designated for attorneys' fees and costs incurred by PERMA relating to and arising fro 27 the dispute among Silver Sage, the City of Desert Hot Springs, and PERMA ("Assess( 28 Fees"); 2 STIPULATION AND AGREEMENT RE PAYMENT OF PERMA ASSESEMENT BY FORMER MEMBERS is\TrovB\Local 1 -7 1 WHEREAS, Defendants are willing to pay the Assessed Fees with the expectatio 2 and acknowledgement by PERMA that this action may be stayed or dismissed until that tim 3 when Silver Sage and/or the City of Desert Hot Springs institute further proceedings again: 4 PERMA to collect or enforce coverage for the judgment against the City of Desert Hr 5 Springs; 6 WHEREAS, Defendants are willing to pay the Assessed Fees, if and only if, PERM 7 acknowledges, stipulates, and agrees that any payment of the Assessed Fees by any of th 8 Defendants, in any amount, shall not be considered or used in this or any other action c 9 proceeding as evidence or an admission of Defendants liability to PERMA, including liabili 10 for the Assessed Fees; and 11 WHEREAS, Defendants are willing to pay the Assessed Fees, if and only if, PERM 12 acknowledges, stipulates, and agrees that if this action proceeds, or another action in tY s 13 future is instituted by PERMA against Defendants, the Defendants shall be permitted and al 14 authorized to pursue the return of the Assessed Fees from PERMA based upon Defendarr abo° $ 15 denial that it has any liability to PERMA, including the Assessed Fees; 5 16 WHEREAS, PERMA is willing to stay or dismiss this action only if each of ti 17 Defendants pay its share of Assessed Fees; 18 THEREFORE, based on the foregoing, PERMA and Defendants, by and through the 19 respective counsel of record who acknowledge that they have authority to enter into th 20 Agreement, hereby STIPULATE and AGREE to the following: 21 (1) Defendants' payment of the Assessed Fees by any of the Defendants, 22 any amount, shall not be considered or used in this or any other action or proceedir 23 as evidence of or an admission by Defendants of any liability to PERMA; 24 (2) If this action proceeds, or another action is instituted by PERMA agair 25 Defendants in the future, Defendants shall be permitted, and are hereby authorized, 26 pursue the return of the Assessed Fees from PERMA based upon Defendants den 27 that it has any liability to PERMA, including the Assessed Fees; and 28 (3) As of the date of this Agreement, the payment of the Assessed Fees sh 3 STIPULATION AND AGREEMENT RE PAYMENT OF PERMA ASSESEMENT BY FORMER MEMBERS Is7rovB\Local L� �, 1 constitute the full and final payment of all attorneys' fees and costs incurred, due, 2 allegedly owing to PERMA by Defendants for the coverage years represented by t 3 Assessed Fees. 4 5 SO STIPULATED AND AGREED TO: 6 Dated: July 2004 WOODRUFF, SPRADLIN & SMART A Professional Corporation 7 8 By: 9 DANIEL K. SPRADLIN MARK M. MONACHINO 10 Attorneys for Defendants CITY OF MORENO VALLEY, CITY c 11 PALM DESERT, CITY OF SIMI VALLE CITY OF PALM SPRINGS, CITY OF 1 12 QUINTA, and CITY OF HEMET Qo 3 13 h <w 2 o0 Y—,14 Dated: Jul 2004 GIBBONS & CONLEY o 15 0 16 By: 17 AUSTIN R. GIBBONS 18 PETER A. URHAUSEN Attorney for Plaintiffs 19 PUBLIC ENTITY RISK MANAGEMENT AUTHORITY 20 21 22 23 24 25 26 27 28 4 STIPULATION AND AGREEMENT RE PAYMENT OF PERMA ASSESEMENT BY FO MER N�WBERS iffrovBlocal q MINUTE ORDER NO. APPROVING A STIPULATION AND AGREEMENT BY AND BETWEEN THE CITIES OF MORENO VALLEY, PALM DESERT, SIMI VALLEY, PALM SPRINGS, LA QUINTA, AND HEMET AND THE PUBLIC ENTITY RISK MANAGEMENT AUTHORITY (PERMA). --------------- I HEREBY CERTIFY that this Minute Order, approving Stipulation and Agreement by and between the cities of Moreno Valley, Palm Desert, Simi Valley, Palm Springs, La Quinta and Hemet and the Public Entity Risk Management Authority was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 6th day of October, 2004. PATRICIA A. SANDERS City Clerk