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HomeMy WebLinkAboutR-78-0357RDK/eg 4/ 20/ 78 RESOLUTION NO, 7 8 3 5 7 A RESOLUTION AUTHORIZING THE DIRECTOR OF OF FINANCE TO PAY TO JOSEPH H. BUTCHER AND OTHERS THE SUM OF $1,100,000 UNDER THE TERMS AND CONDITIONS AGREED UPON IN FULL AND COMPLETE SATISFACTION OF THE JUDGMENTS ENTERED IN THE CIRCUIT COURT IN AND FOR DADE COUNTY, FLORIDA, IN FAVOR OF JOSEPH H. BUTCHER AND OTHERS AND AGAINST THE CITY OF MIAMI. WHEREAS, the Plaintiffs, JOSEPH H. BUTCHER, and all others constituting the class of similarly situated persons filed an action against. the City of Miami and Melvin Reese on October 13, 1970 for damages arising out of allegedly discriminatory employment practices by the City and then City Manager Melvin Reese; and WHEREAS, trial was had in the Circuit Court and a Judge found the City had violated its Charter Section 90 in not granting uniform wage increases to Plaintiffs in 1969; and WHEREAS, further litigation in the Circuit Court resulted in a decision that the liability of the City extended from 1969 to the presen:, with a potential liability in excess of $1,500,000 plus costs and attorneys fees; and WHEREAS, after negotiation, counsel for Plaintiff has agreed to accept $1,100,000 in full and complete satisfaction of the judgments against the City of Miami; and WHEREAS, it is advantageous to the Cityof Miami to pay this sum to effect a savings and to avoid the running of interest; NOW, THEREFORE, BE IT RESOLVED BY THE COMPMIISSION OF THE CITY OF MIAMI, FLORIDA: Section 1, The Director of Finance is hereby directed to pay to JOSEPH H. BUTCHER and others the sum of $1,100,000, under "DOCUMENT INDEX ITEM NO. 2() __,. CITY COMMISSION MEETING OF MAY 1 9 1978 awr+a+ NO. 7.."... 3 5 7 such terms and conditions as he shall deem most beneficial) in full and complete satisfaction of the judgments entered in the Circuit Court in favor of JOSEPH H. BUTCHER and others, PASSED AND ADOPTED this 19 day of MAY , 1978. ATTEST: PREPARED AND APPROVED BY: MAUPICE A. FERRE, MAUIRCE A. FERRE, M A Y 0 R ERT D. KLAUSNER ,.ASSISTAPIT CITY ATTORNEY AP " ED AS TO FORM AND CORRECTNESS: 'ORG . KN0X, JR. , CI T ATTORNE "3UPPORTlVE FOLLOW" 7 8 - 3 5 7 35 Honorable Members of the City Commission Ab.ril 19, 1978 Joseph H. [hitchers _ et al. V. City of Miami and Melvin Reese This memorandum is.to present to the City Commission an offer of settlement in the above styled law suit which was commenced in October, 1970. In order that this Honorable Commission may fully apprise itself the advisability of this offer, presented below is a history of the proceedings and a breakdown of the settlement terms. HISTORY This suit was commenced as a class action by Joseph Butcher and others in October, 1970. The suit alleges that then City Manager, Melvin Reese, raised the salaries of employees of the Sanitation Department who held the job classifications of A.E.O. I, A.E.O. II, A.E.O. III, and Laborers I and II, but failed to grant that raise to persons holding the same job classifications in various other city departments. The suit came to final hearing before the Honorable Harold G. Featherstone, Circuit Judge in April, 1973. At that hearing the following facts were established: 1. On May 1, 1969, employees of the Sanitation Department received a 30o per hour increase which was not granted to the Plain- tiffs who occupied the same classification in other departments. 2. The applicable section of the City Charter is Section 90 which in pertinent part empowers the City Manager to nrant salary increases which "shall be uniform for like service in" each class- ification. 3. The Court ruled that the raise was not made by a review of like services "intra-classification", but, rather was given to employees in certain classifications only within one department in an effort to avert a strike. 4. The Court further found that no logical reason for this distinction between departments could be advanced, nor were there any statutory exceptions to the Charter language concerning uniform salary increases. "SUPPORTIVE FOLLC't " 78-357 Honorable Members of the City Commission April 19, 1978 Page 2 Butcher et al., v. City et As a result of the above findings the Court ordered the City Manager to change the official pay schedules effective May 1, 1969, to provide the 30o per hour increase to those persons affected. Subsequent to this proceeding, disagreement arose over the effective dates which the 1973 order intended to cover. It was the City's contention that the classifications were changed in September, 1970, thus any discriminatory activity on the part of the City was confined to the period of May 1, 1969 and September 1970. The Plaintiffs contended that no change had occurred other than in the Sanitation Department making the discrimination on -going in time. The Court took that matter under advisement, at which time the City deposited $187,275 into the registry of Court as the sum representing the City's admitted liability from May, 1969. through September 1970. 0n November 15, 1977, the Honorable Thomas Testa, Circuit Judge determined that the City did not rescind the pay increases prior to the June 18, 1973 order finding the City liable. Further. the Court ruled that no action had been taken by the City to rescind the increases and arguments suggesting that a March 1973 resolution (No. 73-173) effected a cut-off of liability were rejected. SETTLEMENT PROPOSAL While the latest order in this case is currently pending appeal, settlement negotiations have been entered into between the Plaintiffs and the City in an effort to find some middle ground that would allow the protracted litigation to end. The Plaintiffs offered the following proposal on February 24, 1978: S900,000 $187,000 70,000 80,000 $1,237,000— covering 9/5/70 to nresent already paid in 5/1/69 to 9/5/70 auditors Water and Sewer workers Total Mg IN MEI MIN Honorable Members of the City Commission April 19, 1978 Page 3 Butcher et a1., v, City, et al. After lengthy discussions, a reduced amount was negotiated between the parties, The current offer for this Commissions' con- sideration is as follows: • $1,100,000 - 187,000 913,000 Total, covering all back wages, attorneys fees, court costs, auditors costs, search costs. Already paid in Total Due. If this offer is accepted, the payout period could be accomplished in several •ways. As the entire class of Plaintiffs has not been located, the named Plaintiffs have the burden and expense of searching for those beneficiaries. If those persons are not located within a set number of months, then the amount owed to that member of the class will escheat, or return to the City fund. If the City adopts a four (4) year payout period, the Plaintiffs will have that amount of time to locate the beneficiaries. A three (3) year period has also been discussed. A final alternative would be for the City to tender the entire amount due at one time and would in return receive a considerably shortened time in which beneficiaries would be entitled to make their claims. The shorter time period permitted for claims becomes, the higher the prospects for escheat to the City becomes. Should this offer of settlement be rejected and the pending appeal be pursued, several possibilities may occur. Should the City be successful on this latest appeal and was able to show that in fact Resolution 73-173 did effect the chances then its liability would fall in the area of $700,000. If the City is unsuccessful on appeal the total liability could exceed $1,500,000, reflecting costs and interest on appeal. After discussions with the Finance Director, it was determined that sufficient funds are available for acceptance of the settlement with any of the three proposed payment schedules. CONCLUSION For the foregoing reasons, the City Attorney respectfully recommends acceptance of this offer as being in the best interest of the City. GFK: QJJp: RDK: rs DOC..;