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R-1410 - 10/28/2014 - PERSONNEL - Resolutions Supporting Documents ITEM 6.F.2) /14 tv?,,a,„. .„,,, .›.-6,-..414 v skdrit ge*,--,,tovo Es- COUN14' AGENDA ITEM Regular Board of Trustees Meeting of October 28, 2014 SUBJECT: Garrigan Settlement Agreement FROM: Cathy Doczekalski,Acting Assistant Village Manager BUDGET SOURCE/BUDGET IMPACT: N/A RECOMMENDED MOTION: I move to approve Resolution R-1410,a resolution approving and authorizing the execution of a settlement agreement by and between the Village of Oak Brook and William and Melissa Garrigan. Background/History: As discussed previously with the Village Board,the settlement agreement is in response to litigation. Recommendation: Staff recommends approval of the Agreement between the Village of Oak Brook and William and Melissa Garrigan. RESOLUTION 2014-AG-SETT-PL-EX-R-1410 A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND WILLIAM AND MELISSA GARRIGAN WHEREAS, William Garrigan and Melissa Garrigan (collectively, "Plaintiffs"), filed a lawsuit in 2009 in the Court of DuPage County, Illinois, Case No. 09 MR 000568, claiming that Plaintiffs are entitled to benefits under the Public Safety Employee Benefits Act, 820 ILCS 320/1 et seq. ("Lawsuit"); and WHEREAS, the Village and the Plaintiffs now desire to reach a mutually acceptable, good faith resolution of all matters pending between them; and WHEREAS, the President and Board of Trustees have determined that settling the Lawsuit with the Plaintiffs by entering into a settlement agreement is in the best interests of the Village; NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Approval of the Settlement Agreement. The President and Board of Trustees hereby approve the Settlement Agreement by and between the Village and the Plaintiff, in substantially the same the form as attached as Exhibit A("Settlement Agreement"). Section 3: Authorization and Execution of the Settlement Agreement. The Village President and Village Clerk shall be, and hereby are, authorized to execute the Settlement Agreement in substantially the same form as attached hereto as Exhibit A after receipt of the final Settlement Agreement fully executed by Plaintiffs. Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and approval in the manner provided by law. [SIGNATURE PAGE FOLLOWS] Resolution 2014-AG-SETT-PL-EX-R-1410 Approving and Authorizing the Execution of a Settlement Agreement with the Garrigans Page 2 of 3 APPROVED THIS 28th day of October, 2014 Gopal G. Lalmalani Village President PASSED THIS 28th day of October, 2014 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk Resolution 2014-AG-SETT-PL-EX-R-1410 Approving and Authorizing the Execution of a Settlement Agreement with the Garrigans Page 3 of 3 EXHIBIT A SETTLEMENT AGREEMENT SETTLEMENT AGREEMENT This Settlement Agreement ("Agreement") is entered into by and between William Garrigan ("Garrigan") and Melissa Garrigan (his "spouse") and the Village of Oak Brook ("Village"): NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual covenants herein made and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged,the parties do hereby enter into the following Agreement: 1. Settlement Amount and Payment William Garrigan agrees to accept a settlement from the Village of Oak Brook in the total amount of ONE HUNDRED SEVENTY FIVE THOUSAND AND NO/100 ($175,000.00) in exchange for a full and final dismissal with prejudice of all claims against the Village of Oak Brook with each side bearing its own costs and attorney's fees except as provided in paragraph 2 of this Agreement. In consideration for payment of the aforesaid settlement amount, William Garrigan agrees to withdraw himself, his spouse and dependent child, Amy Garrigan, from the Village's health insurance plan effective October 1, 2014. Garrigan further agrees that any and all claims or entitlements to health insurance benefits which he, his spouse or dependent child may have now or in the future from the Village will terminate forever effective October 1, 2014. The Village agrees to issue a settlement check made payable to the plaintiff, William Garrigan, in the aforesaid amount within 30 days after October 1, 2014. The Village's counsel will tender the settlement checks to Garrigan and his attorneys, as set forth in paragraphs 1 and 2, upon the presentment of a order dismissing all claims in their entirety with prejudice in Case No. 2009 MR 568. The parties agree that $122,238.45 of the aforesaid settlement amount ($175,000.00) represents reimbursement to William Garrigan for past health insurance premiums he paid to the Village from December, 2006 up to the present time, and that this reimbursement does not exceed the amount paid by William Garrigan for these past health insurance premiums. The parties further agree that $46,678.80 of the aforesaid settlement amount ($175,000.00) represents a compromise for disputed future health insurance premiums and that William Garrigan agrees to utilize this amount solely and exclusively for payment of future health insurance premiums he will incur. 2. Attorneys' Fees & Expenses. The parties agree that $6,082.75 of the aforesaid settlement represents attorneys' fees ($5,000.00) and expenses ($1,082.75) which have been incurred by William Garrigan's attorneys during the litigation of this matter. Upon payment of the aforesaid settlement amount ($175,000.00) the Village is hereby released and discharged from any and all claims for attorneys' fees and expenses made by William Garrigan or any attorney or law firm that represented William Garrigan in this matter. 3. Waiver. Garrigan, his spouse and child waives any and all claims they may have now or in the future for PSEBA (Public Safety Employee Benefits Act) benefits to which he, his spouse and/or family could be entitled to based upon Garrigan's disability status. Garrigan acknowledges that he has received all compensation due him and that the Village has discharged all obligations to him as a result of his work on behalf of the Village, as well as any other expectation of remuneration or benefit. 4. Consideration. Garrigan acknowledges that he would not be entitled to the benefits provided for in paragraph 1 above in the absence of his signing this Agreement, that the benefits constitute a substantial economic benefit to Garrigan, and that they constitute good and valuable consideration for the various commitments undertaken by Garrigan in this Agreement. 5. Parties Released. For purposes of this Agreement, the term "Releasees" means the Village, and each of its elected and appointed officials, employees, agents, representatives, attorneys and insurers in their individual capacities. Plaintiff agrees to the dismissal with prejudice of all the claims in his lawsuit against the Village of Oak Brook, Case No. 2009 MR 568. 6. General Release. Garrigan, for and on behalf of himself and each of his personal and legal representatives, heirs, devisees, executors, successors and assigns, hereby acknowledges full and complete satisfaction of, and fully and forever waives and releases the Releasees from any and all claims, causes of action, demands, liabilities, damages, obligations, and debts (collectively referred to as "Claims"), of every kind and nature, whether known or unknown, which Garrigan holds as of the date Garrigan signs this Agreement, or at any time previously held against the Releasees, or any of them, arising out of any matter (with the exception of breaches of this Agreement) including but not limited to claims under Title VII of the Civil Rights Act; the Illinois Human Rights Act, the Civil Rights Act of 1991, the Illinois Civil Rights Act, the Illinois Wage Payment and Collection Act,the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Act, the Fair Labor Standards Act, and any other state or federal statutes or Village policies applicable to Garrigan's employment with the Village. 7. Covenant Not to Sue. Garrigan represents and warrants that as of the date he signs this Agreement, he has not initiated or caused to be initiated against the Village any administrative claim, investigation, or proceeding of any kind. 8. Remedies for Breach. If Garrigan, or anyone on his behalf, initiates, brings or prosecutes any suit or action against the Village in any federal, state, county or municipal court, with respect to any of the Claims released in this Agreement, or if Garrigan breaches any of the terms of this Agreement, then (a) Garrigan shall be liable for the payment of all damages, costs and expenses (including attorneys' fees) incurred by the Releasees, or any of them, in connection 2 with such suit, action or breach and (b) the Village shall no longer be obligated to make any payments not already made to Garrigan prior to Garrigan's breach of this Agreement. Additionally, in the event Garrigan files a suit or action in any court against the Village, the Village may require Garrigan to return all monies and benefits paid to him pursuant to this Agreement. Garrigan also waives his right to any attorneys' fees, compensation or other recovery whatsoever as the result of any legal action brought by him or on his behalf by any other party against the Village. If the Village breaches this Agreement, Garrigan shall not be held to have waived any Claims pursuant to this Agreement. 9. Taxes. Garrigan agrees that he is responsible for payment of all federal, state, and local taxes, of any type whatsoever, due and resulting from the payments to him of the above-described consideration. The Village, however, shall cooperate with Garrigan and provide any and all documentation establishing proof of his prior payments made for continuing coverage under the Village health insurance plan from December 2006 up to the present, if requested as part of any review, claim or cause of action made by the Internal Revenue Service or any other taxing entity relating to any alleged tax liability arising out of this settlement. 10. No Admission of Liability. Nothing in this Agreement constitutes or shall be construed as an admission of liability on the part of the Releasees, or any of them. The Releasees expressly deny any liability of any kind to Garrigan, and particularly any liability arising out of or in any way related to his or his spouse's claim for PSEBA benefits from the Village. It is agreed that evidence of this settlement shall be inadmissible in any other action of any kind, unless introduced by or with permission of the Releasees. 11. Non-Disparagement. Garrigan agrees that he will not, directly or indirectly, engage in any conduct or make any statement to any person or entity that is calculated or likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon the Village. 12. Warranty of Understanding and Voluntary Nature of Agreement. Garrigan acknowledges that he has carefully read and fully understands all of the provisions of this Agreement; that he knows and understands the rights he is waiving by signing this Agreement; and that he has entered into the Agreement knowingly and voluntarily, without coercion, duress or overreaching of any sort. Garrigan acknowledges that he has been advised of his right to consult with an attorney or other representative of his choice prior to signing this Agreement. 13. Severability. The provisions of this Agreement are fully severable. Therefore, if any provision of this Agreement is for any reason determined to be invalid or unenforceable, such invalidity or unenforceability will not affect the validity or enforceability of any of the remaining provisions. 14. Entire Agreement/Integration. This Agreement constitutes the sole and entire agreement between Garrigan and the Village with respect to the subjects addressed in it, and supersedes all prior or contemporaneous agreements, understandings, and representations, oral and written, with respect to those subjects. Garrigan acknowledges that no promises or agreements have been made to him except those contained in this Agreement. Any and all prior 3 settlements between the Village and Garrigan are not affected by this Settlement Agreement including, but not limited to all prior settlements of Garrigan' workers' compensation claims. 15. No Waiver. No waiver, modification or amendment of any of the provisions of this Agreement shall be valid and enforceable unless in writing and executed by Garrigan and the Village. 16. Confidentiality. Garrigan shall keep confidential the existence of this Agreement and its terms, and agrees that neither he, nor any of his agents, shall directly or indirectly disclose any such matters unless written consent is given by the Village, or unless required to comply with any federal, state or local law, rule or order. However, this paragraph will not prohibit Garrigan from disclosing the terms of this Agreement to his attorneys, accountants or other tax consultants as necessary for the purpose of securing their professional advice, or in connection with any suit or action alleging a breach of this Agreement. In view of the difficulty of determining monetary damages in the event of a breach of this confidentiality provision, it is agreed that Releasees shall be entitled to liquidated damages in the amount of One Thousand Dollars ($1,000), plus reasonable attorneys' fees and costs associated with enforcing this confidentiality provision, in the event of a breach of this paragraph by Garrigan, which remedies are agreed by Garrigan to be reasonable. Releasees shall also be entitled to injunctive relief and/or any other available remedy in the event of a breach of this paragraph by Garrigan. In the event that Releasees take steps to seek relief from Garrigan for an alleged breach of this paragraph, all of the remaining provisions of this Agreement shall remain in full force and effect. 17. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Garrigan and his personal and legal representatives, heirs, devisees, executors, successors and assigns, and the Village and its successors and assigns. 18. Choice of Law. This Agreement and any amendments thereto shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to conflicts of law principles. WILLIAM GARRIGAN VILLAGE OF OAK BROOK By: By: Dated: , 2014 Dated: , 2014 Melissa GARRIGAN By: Dated: , 2014 4 Amanda GARRIGAN By: Dated: , 2014 4814-1195-4462,v. 1 5