HomeMy WebLinkAboutMINUTES - 06161992 - 1.96 TO: BOARD OF SUPERVISORS
FROM: COUNTY COUNSEL
DATE: June 12, 1992
SUBJECT: SETTLEMENT OF LITIGATION AGAINST INSURANCE COMPANY OF THE WEST,
SUBDIVISION 6696, SAN RAMON AREA
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE County Counsel's office to sign a Settlement Agreement
and Assignment in favor of Insurance Company of the West ("ICW")
and to take all other steps necessary to settle lawsuit against
ICW.
FISCAL IMPACT
None; the money offered by ICW ($122, 562. 00) would be used for
completing the private .road improvements for Subdivision 6696.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On September 24, 1991, the Board authorized the filing of suit
against ICW, the company that issued the bonds for Subdivision 6696
(Bruce and Joan Flanagan) . The purpose of this lawsuit was to
compel the completion of private road improvements for the
subdivision or to recover the penal sum of the performance bond
($122 ,562 .00) .
On -January 7, 1992, suit was filed in the Contra Costa County
Superior Court (County of Contra Costa v. Insurance Company of the
West, et al. ; Case No. C92-00059) . Shortly thereafter, the County
Counsel 's Office received a settlement offer of $122, 562 . 00 from
ICW. The amount offered represents the penal sum of the
performance bond and would cover most of the cost of completing the
private road improvements for Subdivision 6696.
The County Counsel's Office has discussed the settlement offer with
the Public Works Department and both departments recommend that the
settlement be accepted.
CONSEQUENCES OF NEGATIVE ACTION
The lawsuit would proceed at additional expense to the County with
the possibility that the County would end up receiving the same
amount or less.
CONTINUED ON ATTACHMENT: TES SIGNATURE
_ RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON June 16, 1992 APPROVED AS RECOMMENDED X OTHER /
VOTE OF SUPERVISORS
Y _ _ _ I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPT OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOYN.
Orig: Community Development Department ATTESTED June 16, 1992
cc: County Counsel PHIL BATCHELOR, CLERK OF
Public Works-Engineering Services Div. THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
BY %1L DEPUTY
DFS: