HomeMy WebLinkAboutMemo - Office of City AttorneyCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor and Members of the City Commission,
FROM: Julie O. Bru, City Attorney
DATE: July 11, 2011
RE: Proposed Settlement — City Commission Agenda — July 28, 2011 -
Sprint -Spectrum, L.P. v. City of Miami and Miami -Dade County,
Miami -Dade County Circuit Court, Case No.: 01-28782 CA 11
City of Miami vs. Sprint -Spectrum,
Miami -Dade County Circuit Court, Case No.: 04-20914 CA 11
File ID No. 11-00648
The attached proposed Resolution seeks authorization for the settlement of all claims
against the City of Miami asserted in the above -referenced cases, in the amount of $97,000.
This is a claim for alleged overpayment of Public Service Taxes by Sprint -Spectrum L.P.
to the City, during the period October 1, 1997 through September 30, 2000, caused by the
alleged erroneous payment by Sprint -Spectrum L.P. to the City of Miami, instead of to Miami -
Dade County. In the lawsuit, Miami -Dade County filed a claim for underpayment against
Sprint -Spectrum L.P., and a cross -claim against the City to impose an equitable constructive
trust. The City filed a separate suit against Sprint -Spectrum because it was allegedly unilaterally
deducting credits from tax payments due the City and paying them to the County to reduce the
alleged overpayment. The total amount of alleged overpayment was originally $2,052,963. The
County further claimed pre judgment interest and penalties. The principal amount was reduced
to $387,619.50 due to Sprint-Spectrum's unilateral taking of credits against payments due the
City over time. The proposed settlement would require the City to pay Sprint -Spectrum $97,000,
and would require Sprint -Spectrum L.P to pay the County $194,000.
• Funds in the amount of $97,000 will be allocated from Account No.
00001.9 8 0000.5 31010.0000.00000.
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Attachment
c. Johnny Martinez, City Manager
Elvi Gallastegui, Agenda Coordinator
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