DEPARTMENT: City Attorney
DEPARTMENT HEAD: Robert F. Greenblum
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Settlement of KGME, Inc v. City of San Antonio
SUMMARY:
This Ordinance authorizes a settlement of a state lawsuit styled KGME Inc. v. the City of San Antonio, in the 57th Judicial District Court, Cause No. 2008-CI-06449, for the amount of $230,000.00.
BACKGROUND INFORMATION:
Plaintiff, a construction company, sought damages for delays that occurred on the Goliad Drainage Project. The dispute centered around the causes of erosion and the failed channel walls which led to delays of project completion. Plaintiff sought damages in the amount of $675,000, plus prejudgment interest. After mediation, the parties reached an agreed settlement of $230,000.00, subject to Council approval.
ISSUE:
Settlements over $50,000 require City Council approval.
ALTERNATIVES:
If this settlement is not approved by the City Council, this case will proceed to jury trial within the next few months. It is in the best interest of the City to settle this matter to avoid the uncertainty and risks associated with litigation.
FISCAL IMPACT:
If approved, $230,000.00 will be paid to KGME Inc. and the Law Office of Dulske and Gluys, P. C., with $65,895.92 from remaining project funds, and $164,104.08 in accordance with the Adopted FY 2014 Liability Fund.
RECOMMENDATION:
Staff recommends approval of this Ordinance.