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HomeMy WebLinkAboutMemorandumOUTSIDE COUNSEL MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Outside Counsel DATE: July 9, 2026 RE: City Commission Meeting — May 28, 2026 Settlement regarding the matter of Joe Carollo vs. City of Miami, pending in the Eleventh Judicial Circuit in and for Miami -Dade County. Case No.: 2006-014464-CA-01 File No. 19334 The attached proposed resolution seeks authorization for full and final settlement of any and all claims against the City of Miami ("City") by Joseph X. Carollo in the matter of Joe Carollo vs. City of Miami, Case No. 2006-014464-CA-01, pending in the Eleventh Judicial Circuit in and for Miami -Dade County, Florida. In his complaint against the City, Carollo alleges that the City unlawfully decreased his pension benefits as a result of the passage of Resolution 02-859, which directed the Trustee of the Elected Officials' Retirement Trust ("EORT") to calculate Carollo's pension benefits to exclude certain back pay, back benefits, and salary advances that had been included as wages in Carollo's 1999 W-2 for purposes of his pension benefits. After litigating this matter for several years, Carollo and the City have agreed on a settlement of this matter for the total amount of Seven Hundred and Seventy Thousand Dollars and Zero Cents ($770,000.00). This settlement resolves any claimed entitlement by Carollo to damages, attorneys' fees and costs, and interest in the pension benefits he alleges were not paid to him by the City. The Florida Bar rules governing attorney conflict prohibited the City Attorney's office from handling this matter. As a result, the City Attorney retained outside counsel, who investigated and evaluated this case, and has approved the recommendation of this settlement. cc. James Reyes, City Manager Miriam Santana, Agenda Coordinator City of Miami Legislation Resolution Enactment Number: R-26-0310 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 19334 Final Action Date:7/9/2026 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE TRUSTEE OF THE ELECTED OFFICERS' RETIREMENT TRUST ("EORT") AND/OR THE CITY'S EXCESS BENEFITS PLAN ("EBP"), TO PAY JOSEPH X. CAROLLO, UPON THIRTY (30) DAYS FROM THE DATE ON WHICH THE MIAMI CITY COMMISSION APPROVES THE SETTLEMENT AGREEMENT, SEVEN -HUNDRED -SEVENTY - THOUSAND -DOLLARS ($770,000.00), INCLUSIVE OF ALL FEES AND COSTS, WITH CAROLLO RETAINING THE RIGHT TO DEFEND AGAINST ANY ACTION BY THE CITY TO RECOVER FEES OR COSTS PURSUANT TO FLA. STAT. §111.07, NOT TO SEEK DAMAGES BUT TO DEFEND THE ACTION SO AS NOT TO BE DEEMED RELEASED, IN EXCHANGE FOR CAROLLO ENTERING INTO A SETTLEMENT AGREEMENT, WHICH CONTAINS A FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS BY HIM, INCLUDING ALL CLAIMS FOR ATTORNEYS' FEES, AGAINST THE CITY OF MIAMI, AND ANY OF ITS DEPARTMENTS, ELECTED OFFICIALS, AGENTS, OFFICERS, OR EMPLOYEES, AND DISMISSAL WITH PREJUDICE OF THE CASE OF JOE CAROLLO VS. CITY OF MIAMI, CASE NO. 06-014464-CA-01, PENDING IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA (THE "PENSION LITIGATION"); ALLOCATING FUNDS FROM THE EORT AND/OR THE EBP AND/OR OTHER LEGALLY AVAILABLE FUNDS. WHEREAS, Joseph X. Carollo and the City of Miami ("City") are engaged in litigation in the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 2006-014464-CA-01; and WHEREAS, The Florida Bar rules governing attorney conflict prohibited the Office of the City Attorney's from handling this matter, resulting in the City retaining outside counsel; and WHEREAS, claims were investigated by outside counsel, who recommends that the claims of Joseph X. Carollo in the Pension Litigation be settled for the lump sum of Seven Hundred Seventy Thousand and 00/100 Dollars ($770,000.00), including all claims for attorneys' fees and costs, and the nonmonetary condition of Joseph X. Carollo retaining the right to defend against any action by the City of Miami to recover fees or costs pursuant to Fla. Stat. §111.07, not to seek damages, but to defend the action so as not to be deemed released; 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 if fully set forth in this Section. Section 2. The Trustee of the Elected Officers' Retirement Trust and/or the City's Excess Benefits Plan are authorized' to pay Joseph X. Carollo, without admission of liability, Seven Hundred Seventy Thousand and 00/100 Dollars ($770,000.00) in full and complete settlement of any and all claims and demands, including all claims for attorneys' fees, in exchange for dismissal of all claims against the City, and any of its departments, elected officials, agents, officers, or employees, and dismissal with prejudice of the case of Joe Carollo vs. City of Miami, Case 06-014464-CA-01, pending in the Circuit Court of the Eleventh Judicial Circuit in and for Miami -Dade County, Florida. Section 3. Funds are to be allocated from the EORT and/or EBP and/or other legally available funds. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: Outside Counsel Outside Counsel 5/18/2026 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions.