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R-1463 - 05/26/2015 - AGREEMENTS - Resolutions Supporting Documents ITEM 6.D.I I of 04k�9 v tt O CQUNT`!, AGENDA ITEM Regular Board of Trustees Meeting of May 26, 2015 SUBJECT: Settlement Agreement-Robert Mudra FROM: Riccardo F. Ginex,Village Manager BUDGET SOURCE/BUDGET IMPACT: $190,000 RECOMMENDED MOTION: Motion to Approve Resolution 2015-AG-SETT-PL-R-1463, A Resolution Approving And Authorizing The Execution Of A Settlement Agreement By And Between The Village of Oak Brook and Robert Mudra BacktZxound/History: Robert Mudra is a former Village police officer. This settlement agreement will finalize negotiations which concerned any benefits under the Public Safety Employee Benefits Act (PSEBA), the Public Employee Disability Act(PEDA) and past Health Insurance claims for Mr. Mudra and his family. Recommendation: The Board approves the resolution and adopts the agreement as presented. Last saved by dbettin V:\01 LegislativeGenMan\Agendas\AGENDA MEMOS\2015 Agenda Memos\0526151Agenda Item-Mudra Settlement Agreement 5-26-15.docx � I aq+—irtnd G)n/9,01 S Q-17 AM RESOLUTION 2015-AG-SETT-PL-R-1463 A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND ROBERT MUDRA WHEREAS, Robert Mudra ("Plaintiff's filed a lawsuit in 2013 in the Court of DuPage County, Illinois, Case No. 2013 MR 582, claiming that the Plaintiff is entitled to benefits under the Public Safety Employee Benefits Act, 820 ILCS 320/1 et seq., and the Public Employee Disability Act, 5 ILCS 345/0.01 et seq. ("Lawsuit"); and WHEREAS, the Village and the Plaintiff 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 Plaintiff 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 the Plaintiff. 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 2015-AG-SETT-PL-R-1463 Approving and Authorizing the Execution of a Settlement Agreement with Robert Mudra Page 2 of 3 APPROVED THIS 26th day of May, 2015 Gopal G. Lalmalani Village President PASSED THIS 26th day of May, 2015 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk Resolution 2015-AG-SETT-PL-R-1463 Approving and Authorizing the Execution of a Settlement Agreement with Robert Mudra Page 3 of 3 EXHIBIT A SETTLEMENT AGREEMENT SETTLEMENT AGREEMENT This Settlement Agreement ("Agreement") is entered into by and between Robert Mudra ("Mudra") 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. Identification and Acknowledgment of Dependents. The Village and Mudra acknowledge and agree that, as of the effective date of this Agreement, Mudra: (i) is married to Kristine Mudra (date of birth: September 28, 1966) ("Kristine"); and (ii) has the following two children: A. Kyle Mudra(date of birth: August 23, 1989); and B. Karli Mudra(date of birth: July 29, 1993). (each an"Existing Child", and, collectively, "Existing Children") 2. Settlement Amount and Payment. Robert Mudra agrees to accept a settlement from the Village of Oak Brook in the total amount of ONE HUNDRED NINETY THOUSAND AND NO/100 ($190,000.00) 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 3 of this Agreement In consideration for payment of the aforesaid settlement amount, Robert Mudra agrees that any and all claims or entitlements to health insurance or PEDA (as herein defined) or any other benefits or claims, which he, Kristine, or the Existing Children may have now or in the future from the Village, will terminate forever, effective as of the date on which the Village delivers the settlement amount to Mudra. The Village agrees to issue a settlement check made jointly payable to the plaintiff, Robert Mudra, and to plaintiff's attorneys, Morici, Figlioli & Associates, in the aforesaid amount on or before May 31, 2015. The Village's counsel will tender the settlement checks to Mudra and his attorneys, as set forth in paragraphs 2 and 3, upon the entry of an order dismissing all claims in their entirety with prejudice in Case No. 2013 MR 582 ("Lawsuit"), with Parties bearing their own attorney's fees and court costs (except as expressly provided in this Agreement). The parties agree that $32,560.94 of the aforesaid settlement amount ($190,000.00) represents reimbursement to Robert Mudra for past health insurance premiums he paid from May, 2011 up to the present time, and that this reimbursement does not exceed the amount paid by Robert Mudra for these past health insurance premiums. +�cr The parties further agree that $8,022.46 of the aforesaid settlement amount ($190,000.00) represent reimbursement of wage benefits as contemplated by the Illinois Public Employee Disability Act, 5 ILCS 345/1 et seq. ("PEDA"). The parties further agree that $144,416.60 of the aforesaid settlement amount ($190,000.00) represents a compromise for disputed future health insurance premiums and that Robert Mudra agrees to utilize this amount solely and exclusively for payment of future health insurance premiums he will incur. 3. Attorneys' Fees & Expenses. The parties agree that $5,000.00 of the aforesaid settlement represents attorneys' fees and expenses which have been incurred by Robert Mudra's attorneys during the litigation of this matter. Upon payment of the aforesaid settlement amount ($190,000.00), the Village is hereby released and discharged from any and all claims for attorneys' fees and any other expenses made by Robert Mudra or any attorney or law firm that represented Robert Mudra in this matter. 4. Waiver. Mudra waives any and all claims he may have now or in the future for PSEBA (Illinois Public Safety Employee Benefits Act, 820 ILCS 320/1 et seq.) or PEDA benefits to which he, Kristine, the Existing Children, or any other current or future spouse or child could be entitled based upon Mudra's disability status. Mudra 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. 5. Consideration. Mudra acknowledges that he would not be entitled to the benefits provided for in paragraph 2 above in the absence of his signing this Agreement, that the benefits constitute a substantial economic benefit to Mudra, and that they constitute good and valuable consideration for the various commitments undertaken by Mudra in this Agreement. 6. 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. 2013 MR 582. 7. General Release. A. Mudra, for and on behalf of himself and his heirs, executors, personal representatives, successors and assigns, acknowledges full and complete satisfaction of, and fully and forever releases, acquits, and discharges the Village, its predecessors, successors and assigns, and its past and present officials, officers, employees, agents, representatives and attorneys (collectively, the "Village 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, suspected or unsuspected, or fixed or contingent, which Mudra holds or at any time previously held against the Village Releasees, or 2 any of them, arising out of or in any way related to the Lawsuit (with the exception of breaches of this Agreement). B. Mudra hereby agrees to indemnify and hold the Village and the Village Releasees harmless from and against any Claim of every kind and nature, whether known or unknown, suspected or unsuspected, or fixed or contingent, which Kristine or an Existing Child holds or at any time previously held against the Village Releasees, or any of them, arising out of or in any way related to the Lawsuit. 8. Covenant Not to Sue. Mudra 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. 9. Remedies for Breach. If Mudra, 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 Mudra breaches any of the terms of this Agreement, then (a) Mudra 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 with such suit, action or breach and (b) the Village shall no longer be obligated to make any payments not already made to Mudra prior to Mudra's breach of this Agreement. Additionally, in the event Mudra files a suit or action in any court against the Village, the Village may require Mudra to return all monies and benefits paid to him pursuant to this Agreement. Mudra 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, Mudra shall not be held to have waived any Claims pursuant to this Agreement. 10. Taxes. Mudra 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. 11. No Admission of Liability. Nothing in this Agreement constitutes or shall be construed as an admission of liability on the part of the Village Releasees, or any of them. The Village Releasees expressly deny any liability of any kind to Mudra, and particularly any liability arising out of or in any way related to his or his spouse's claim for PEDA and 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 Village Releasees. 12. Non-Disparagement. Mudra 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. 13. Warranty of Understanding and Voluntary Nature of Agreement. Mudra 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. Mudra 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. 3 14. 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. 15. Entire Aueement/Integration. This Agreement constitutes the sole and entire agreement between Mudra 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. Mudra acknowledges that no promises or agreements have been made to him except those contained in this Agreement. Any and all prior settlements between the Village and Mudra are not affected by this Settlement Agreement including, but not limited to all prior settlements of Mudra workers' compensation claims. 16. 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 Mudra and the Village. 17. Confidentiality. Mudra 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 Mudra 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 the Village Releasees shall be entitled to liquidated damages in the amount of $1,000, plus reasonable attorneys' fees and costs associated with enforcing this confidentiality provision, in the event of a breach of this paragraph by Mudra, which remedies are agreed by Mudra 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 Mudra. In the event that Releasees take steps to seek relief from Mudra for an alleged breach of this paragraph, all of the remaining provisions of this Agreement shall remain in full force and effect. 18. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Mudra and his personal and legal representatives, heirs, devisees, executors, successors and assigns, and the Village and its successors and assigns. 19. 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. 20. Representation by Counsel and Drafting. The Parties hereto acknowledge that they have either been represented by or had access to competent legal counsel of their own choosing both in connection with the Lawsuit and in connection with the negotiations, drafting, and execution of this Agreement. Accordingly, the language used in this Agreement will be deemed to be language chosen by both Parties to express their mutual intent, and no rule of strict construction against either Party will apply to any term or condition of this Agreement. 4 ROBERT MUDRA VILLAGE OF OAK BROOK By: By: Dated: , 2015 Dated: , 2015 5 #34928706_v2 VOUCHER VENDOR NAME Robert Mudra and Morici, DATE 6/2/2015 DEPARTMENT LEGAL i Figlioli and Associates i INVOICE I INVOICE PAYMENT P.O I VENDOR I PROGRAM/ACCT. # 1 $AMOUNT DESCRIPTION DATE NO. DATE NO. NO. Settlement Payment pier 06/02/15 121 - 76350 190,000.00 Agreement, approved by BOT 5/26/15. Total $ 190,000.00 New Vendor Information Interim Yes No Approvals Name: Special Instructions: Preparers Please return to Rose for finalizing Dept. Head: Address: Finance Dir.: Village Mgr.: