HomeMy WebLinkAboutMemorandumCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Victoria Mendez, City Attorney ,j a
DATE: March 12, 2020
RE: Proposed Settlement for City Commission Meeting — March 12, 2020
City of Miami v. Consul -Tech Transportation, Inc.
Case No. 17-29978 CA 01
File No.: 7153
The attached proposed Resolution seeks authorization for settlement of all
claims asserted by the City of Miami against Consul -Tech Transportation, Inc., in the
amount of $100,000.00, for claims for breach of contract.
The Office of the City Attorney has investigated and evaluated this case and has
approved the recommendation of this settlement.
Attachment(s)
cc: Emilio T. Gonzalez, City Manager
Christopher Rose, Director, Office of Management and Budget
Miriam Santana, Agenda Coordinator
VM/BLM/CHG/vja
f; City of Miami City Hall
3500 Pan American Drive
Legislation Miami, FL 33133
www.miamigov.com
Resolution
Enactment Number: R-20-0066
File Number: 7153 Final Action Date:3/12/2020
A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING PAYMENT TO
THE CITY OF MIAMI ("CITY") IN THE AMOUNT OF ONE HUNDRED THOUSAND
DOLLARS ($100,000.00) FROM CONSUL -TECH TRANSPORTATION, INC. IN FULL
SETTLEMENT OF ALL CLAIMS AND DEMANDS IN THE CASE OF CITY OF MIAMI V.
CONSUL -TECH TRANSPORTATION, INC., CASE NO. 17-29978 CA 01, PENDING
BEFORE THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND
FOR MIAMI-DADE COUNTY, FLORIDA, PURSUANT TO THE TERMS OF A
SETTLEMENT AGREEMENT AND RELEASE ("AGREEMENT"); AUTHORIZING THE
CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY AND ALL OTHER
NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, TO EFFECTUATE THE SETTLEMENT.
WHEREAS, Consul -Tech Transportation, Inc. ("Consul -Tech") entered into a contract
with the City of Miami ("City") to perform engineering and design services in relation to the Palm
Grove Roadway Improvement Project ("Project") which encompassed roadway improvements
from N.E. 58th Street to N.E. 791h Street between Biscayne Boulevard and N.E. 4th Court; and
WHEREAS, Acosta Tractor, Inc. ("Acosta") entered into a contract with the City to serve
as the City's general contractor for the Project; and
WHEREAS, the Project had numerous delays in the substantial completion due to the
defective work of Consul -Tech; and
WHEREAS, in March 2014, Acosta sued the City for delay damages ("Acosta Lawsuit")
claiming that the City was responsible for the purported delays; and
WHEREAS, the City tendered the defense of the Acosta Lawsuit to Consul -Tech
pursuant to the indemnification clause within the Consul -Tech contract; and
WHEREAS, Consul -Tech rejected the City's tender to indemnify and defend the City in
the Acosta Lawsuit; and
WHEREAS, the City filed a lawsuit against Consul -Tech in the Eleventh Judicial Circuit
in and for Miami -Dade County, Florida for breach of contract ("City's Lawsuit") on December 29,
2017 seeking damages for Consul-Tech's failure to defend and indemnify the City in the Acosta
Lawsuit; and
WHEREAS, the City and Consul -Tech have agreed to settle all claims in the City's
Lawsuit provided that Consul -Tech pays the City $100,000.00 and the parties exchange mutual
releases of all claims arising from or relating to the City's Lawsuit; and
WHEREAS, the City Attorney's Office has investigated the claims and pursuant to
Sections 18-221 through 18-232 of the Code of the City of Miami, Florida, as amended,
recommends that said claim and lawsuit be settled for the total sum of one hundred thousand
dollars ($100,000.00), including any claim for attorneys' fees;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
adopted by reference and incorporated as is fully set forth in this Section.
Section 2. Payment to the City in the amount of $100,000.00 from Consul -Tech in full
settlement of all claims and demands in the case of City of Miami v. Consul -Tech
Transportation, Inc., Case No. 17-29978 CA 01, pending before the Circuit Court of the
Eleventh Judicial Circuit in and for Miami -Dade County, Florida, pursuant to the terms of a
Settlement Agreement and Release ("Agreement"), is accepted.
Section 3. The City Manager is authorized' to execute the Agreement and any and all
other necessary documents, all in a form acceptable to the City Attorney, to effectuate the
settlement.
Section 4. This Resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND CORRECTNESS:
r
i ria i "nd- ezy Attor ey 2/2712020
Pursuant to the resolution, this item became effective immediately upon adoption by the Commission.
' The herein authorization is further subject to compliance with all requirements that may be imposed by
the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code
provisions.