HomeMy WebLinkAboutMINUTES - 12221992 - 1.2 TO: BOARD OF SUPERVISORS
FROM: COUNTY COUNSEL
DATE: December 15, 1992
SUBJECT: Settlement of Litigation Against Great Pacific Savings Bank,
Subdivision 6210 (Flanagan) , San Ramon Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. APPROVE settlement of litigation against Great Pacific Savings
Bank upon receipt by County of $364,700.
2 . AUTHORIZE County Counsel to execute settlement agreement,
cancel instrument of credit and take other actions necessary
to consummate settlement.
FISCAL IMPACT
$364 , 700 in monies payable to the County
BACKGROUND/REASONS FOR RECOMMENDATIONS
In June 1983 , the Board approved a subdivision application for
Subdivision 6210 submitted by Bruce and Joan Flanagan. As a
condition of the subdivision approval, the Flanagans were required
to install road and drainage improvements along Camino Tassajara,
which were estimated to cost $364,700. To ensure installation of
the improvements, the Flanagans entered into a written subdivision
agreement and filed an instrument of credit issued by Bell Savings.
In 1986, the Flanagans applied for an extension of the agreement
and requested to substitute an instrument of credit issued by Great
Pacific Savings. This request was approved by the Board.
When the required improvements had still not been completed by
September 1990, the County Counsel 's Office demanded payment from
Great Pacific pursuant to the instrument of credit. Citing the
Flanagans ' bankruptcy, which had been filed in April 1990, Great
Pacific refused to make payment. As a result, suit was filed
against Great Pacific for payment of the instrument of credit
($364, 700) , interest, attorney's fees and other relief (County of
Contra Costa v. Great Pacific Savings Bank, Contra Costa County
Superior Court Case No. C92-01676) .
CONTINUED ON ATTACHMENT: X YES SIGNATURE Adz AIAUJ�uwzl)al-
X RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
X APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON Z-2 2 APPROVED AS RECOMMENDED _Z OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS 1S A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
IL UNANIMOUS (ABSENT _ ) AND ENTERED ON THE MINUTES OF THE BOARD
AYES: NOES: OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN: _
ATTESTED -¢F,Z-w
Contact: David F. Schmidt (510) 646-2057 PHIL BATCHELOR, CLERK OF
cc: CAO THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Public Works
BY , DEPUTY
At the settlement conference held before Judge Dolgin on December 4, 1992,
Great Pacific offered to pay $364,700 to settle the lawsuit. The amount
offered represents payment in full of the instrument of credit, but does
not cover interest or attorney's fees. The Public Works Department has
carefully considered this offer and recommends that it be accepted.
Assuming that the Board approves the settlement, the lawsuit would not be
dismissed until the County receives payment of the $364,700 and a written
settlement agreement in a form acceptable to the County Counsel 's Office is
signed by the parties.
CONSEQUENCES OF NEGATIVE ACTION
The lawsuit would proceed at additional expense to the County.
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