HomeMy WebLinkAboutR-96-0434J-96-422
5/14/96
RESOLUTION NO.
96- 434
A RESOLUTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY TO ODESSA LTD., A FLORIDA
LIMITED PARTNERSHIP, THE SUM OF $2.6 MILLION,
PLUS Ih r'EFREST PURSUANT TO 28 U.S.C. § 1961,
IN FULL AND COMPLETE SATISFACTION OF ANY AND
ALL CLAIMS, DEMANDS AND JUDGMENTS AGAINST THE
CITY OF MIAMI, PURSUANT TO THE FINAL JUDGMENT
FOR PLAINTIFF, AS ORDERED BY JUDGE SHELBY
HIGHSMITH OF THE UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT OF FLORIDA, ON
SEPTEMBER 24, 1993, IN CASE NO. 90-1109-CIV-
HIGHSMITH; ALLOCATING FUNDS THEREFOR FROM THE
CITY OF MIAMI SELF-INSURANCE AND 'INSURANCE
TRUST FUND, INDEX CODE NO. 620103-653.
WHEREAS, ODESSA LTD., a Florida Limited Partnership, through
its attorneys, filed a lawsuit against the City of Miami
resulting from a breach of contract that occurred on February 7,
1990; and
Whereas, verdict against THE CITY OF MIAMI in the above
lawsuit was entered on September 17, 1993, and a Final Judgment
was entered on September 24, 1993, by Judge Shelby Highsmith,
United States District Court; and
WHEREAS, the City pursued an appeal of the Final Judgment
before the United States Court of Appeals for the Eleventh
Circuit, and said Appellate Court issued an opinion affirming the
Final Judgment with respect to the verdict in favor of
ODESSA LTD.;
CITY COMMISSION
METING OF
J U N 1 3 1996
Resolution No.
96- 434
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The Director of Finance is hereby authorized
to pay to ODESSA LTD., a Florida Limited Partnership, the sum of
$2.6 million, plus interest pursuant to 28 U.S.C. § 1961, in full
and complete satisfaction of any and all claims, demands, and
judgments against the CITY OF MIAMI, pursuant to the Final
Judgment for Plaintiff, as ordered by Judge Shelby Highsmith of
the United States District Court, Southern District of Florida,
on September 24, 1993, in Case No. 90-1109-CIV-HIGHSMITH, with
said funds therefor hereby allocated from the City of Miami Self -
Insurance and Insurance Trust Fund, Index Code No. 620103-653.
1 Section 2. This
Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 13th
- 2 -
day -bf June 1996.
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96- 434
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{ CITY OF MIANII. �LORIDA
` INTER -OFFICE MEMORANDUM 35
_ Honorable Mayor and Members _ May 14, 1996 J_96-422
of the City Commission
Final Judgment: Case No. 90-1109-CIV-HIGHSMITH
"`'3J" ' United States District Court. Southern District
A. u nn Jo es, II REFERENCES City Commission Agenda
City Atto ey ENCLOSURES: June 13, 1996
�1)
In May of 1990 the plaintiffs, CIRCA LTD., a Pennsylvania
corporation, and ODESSA LTD., a Florida limited partnership,
through their attorneys, sued the City of Miami for damages and
injunctive relief, claiming breaches of contract and violations
of their constitutional rights under 42 U.S.C. § 1983. Their
claims arise out of the City's termination of a development
agreement with CIRCA LTD., and the recision of a lease with
ODESSA LTD., with respect to the Southeast Overtown/Park West
Redevelopment Project. Out of the five claims brought against
the City, the City prevailed at,trial on three of the claims,
however, the jury found that the City unconstitutionally deprived
CIRCA LTD. of a property interest and breached the contract with
ODESSA LTD. The jury awarded $500,000 to CIRCA LTD. and
$2,600,000 to ODESSA LTD., respectively, as damages. A Final
Judgment was subsequently entered in favor of the plaintiffs for
said amounts plus interest pursuant to 28 U.S.C. § 1961.
(Interest is computed from the date of the date of the judgment --
September 24, 1993--and is based upon a rate equal to the coupon
issue yield equivalent of the average accepted auction. price for
the last auction of fifty-two week United States Treasury bills
settled immediately prior to the date of the judgment.)
Following the entry of Final Judgment, the City engaged
Arthur England, Esq., of the law firm or Greenberg, Traurig to
prosecute an appeal before the United States Circuit Court of
Appeals for the Eleventh Circuit. The appellate court affirmed. the $2,600,000 judgment in favor of ODESSA LTD., finding that the
evidence did support the verdict that the City breached its
contract with ODESSA LTD. The appellate court reversed the
$500,000 awarded to CIRCA LTD., concluding as a matter of law
that CIRCA LTD. did not acquire a constitutionally protected
property interest notwithstanding the City's acceptance of CIRCA
LTD's proposal pursuant to a Request For Proposals.
In order to comply with the appellate decision, the attached
Resolution has been prepared authorizing payment as ordered by.- ..
the Final Judgment. Funds for said payment are available from
the City of Miami Self -Insurance and Insurance Trust Fund, Index
Code No. 620103-653.
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