HomeMy WebLinkAboutR-97-0708J-97-691
10/6/97
RESOLUTION NO. 9 7` 708
ARESOLUTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY TARAFA CONSTRUCTION, INC., THE
SUM OF $600,000.00, WITHOUT ANY ADMISSION OF
LIABILITY, IN FULL AND COMPLETE SETTLEMENT OF
ANY AND ALL CLAIMS AND DEMANDS AGAINST THE
CITY OF MIAMI, FLORIDA, IN THE CIRCUIT COURT
OF DADE COUNTY, FLORIDA, CASE NO. 90-49590-CA
(01), UPON THE EXECUTION OF A RELEASE
RELEASING THE CITY OF MIAMI FROM ANY AND ALL
CLAIMS AND DEMANDS; ALLOCATING FUNDS THEREFOR
FROM THE CITY OF MIAMI SELF-INSURANCE AND
INSURANCE TRUST FUND, INDEX CODE
NO. 424401-661.
WHEREAS, Tarafa Construction, Inc. through its attorney,
filed a lawsuit against the City of Miami in the Circuit Court of
Dade County, Florida, Case No. 90-49590-CA (01), for breach of
contract arising out of the construction of Fire Garage/Fire
Station #3, Project No. 515001; and
WHEREAS, the above lawsuit has been investigated by the City
Attorney's Office and the City Manager's Office, and said offices
recommend that said lawsuit be settled for the sum of
$600,000.00;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
CYTY C
MEETING OF
0 CT 1 4 1997
nrieesolution JN . pp
J/—
Section 1. The Director of Finance is hereby authorized
' to pay Tarafa Construction, Inc., the sum of $600,000.00, without
any admission of liability, in full and complete settlement of
any and all claims and demands against the City of Miami,
Florida, in the Circuit Court of Dade County, Florida, Case
No. 90-49590-CA (01), upon the execution of a release releasing
the City of Miami from any and all claims and demands, with funds
therefor hereby allocated from the City of Miami Self -Insurance
and Insurance Trust Fund, Index Code No. 424401-661.
Section 2. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 14th
ATTEST
a�Z/_
WALTER J. MAN
CITY CLERK
RISK AGEM NT REVIEW:
MARIO E. SOLDEVILLA
RISK MANAGEMENT ADMINISTRATOR
PREPARED AND APPROVED BY:
CHRISTOPHER F. KU=V
ASSISTANT CITY ATTORNEY
CFK/BSS/pb/W1885
day of October 1997.
i
JOE L MAYOR
r,
BUDGETARY AND MANAGEMENT
ANALYSIS VIE
DIPAKH PA KH, DIRECTOR
APPROVED AS TO FORM AND
CORRECTNESS: A.
A! QetNN 00 S, I
CITY ATT EY
-2-
91- 708
i
CITY OF MIAMI, FLORIDA22
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members October 3, 1997 5p; - 1
To : of the City Commission DATE : FILE '
SUBJECT : Request for Settlement Authority
!`/ Tarafa Construction v. City of Miami
Case No. 90-49490 (22)
FROM : A. Quinn 7o Vsi�Io
REFERENCES: Claim No. 011/POL-91-002
City Attorn y October 14, 1997 City Commission Agenda
ENCLOSURES:
This litigation arose from the modification and expansion of the Fire Garage/Fire Station
#3 near the Orange Bowl. The project was plagued by delays and other problems. Tarafa
Construction eventually sued the City for breach of contract, and the City filed a counterclaim for
liquidated damages and construction defects.
After attempts at settlement failed, the parties went to trial in 1995. Trial took
approximately three (3) weeks over a one (1) year period and resulted in a net award of damages
to Tarafa Construction of $846,753.00, plus costs and attorneys fees of $142,695.58. With
interest, the judgment against the City totaled approximately $1.2 million.
The City appealed the judgment to the Third District Court of Appeal which reversed the
final judgment in its entirety. The appellate court found that a new trial was required because of
the numerous delays in the trial of the case, the long delay after the trial before .the judge issued
his ruling, and the confusing nature of the final judgment, which awarded each side almost
precisely what it requested (it should be noted that although two (2) elements of Tarafa's
damages were eliminated on appeal, the majority of their damages remain viable and constitute the
bulk of their claim).
This case is now in a posture to go to trial once again. The "worst case" scenario if
Tarafa again prevails against the City in a new trial is approximately $2 million since prejudgment
interest keeps running.
In the interests of resolving this dispute, the parties met to discuss the possibility of
settlement. Present at this meeting were the Plaintiff and his attorney, and representatives of the
City' Manager's Office, Fire Department and Law Department. After lengthy negotiations,
$600,000.00 was agreed upon subject to City Commission approval.
97- 708
Honorable Mayor and Mes
of the City Commission
�r
October 3, 1997
Page 2
It is respectfully recommended by the City Attorney and the City Manager that settlement
of this dispute for $600,00.00 be approved by the City Commission. The potential loss to the
City, if Plaintiff prevails again, could easily equal $2 million, not including litigation costs. The
best interests of the City would be served by resolving this dispute pursuant to the terms as
outlined in the attached Resolution.
AQJ/CFK/pb/W025
Enclosure
cc: Edward Marquez, City Manager
2 97- 708