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Resolution No. 1960 . RESOLUTION NO. 1960 A R.ESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING COM- PROMISE AND SETTLEMENT IN THE CASE OF ABRAHAM CHALK AND CHARLES NESS., DOING BUSINESSAS CHALK METAL COMPANY AGAINST THE COUNTY OF LOS ANGELES. CITY OF VE:RNON.. ET AL. DEFENDANTS WHEREAS.. on March 17. 1954. Abraham Chalkand Charles Ness.. doing business as Chalk Metal Company. lessees of the propertyknoWllas 20.35 East 46th Street in the City of Vernon. presented to the city a verified claim in the amount of $11..500.00 for alleged property damage resulting from the flooding of the intersection of 46th Street and St. Charles Street.. which was allegedly caused by a dangerous and defective condition of the sanitary sewer located at .said intersection.. which claim was rejected by the City of Vernon; and WHEREAS.. an action. being number 640092 in the Superior Court of the State of California. inaud for the County of Los Angeles. was filed and set for jury trial on July 23.. 1956.. and WHEREAS.. an offer of compromls.e has been received by the attorne.ys for the City of Vernon whereby the trial of saidlawsuit willbe un- necessary; and WHEREAS.. said aforementioned claim was and is disputed by the City of Vernon. and that said offer of compromise consists of a settlement of sald disputed claim with no liability attaching to or admitted by the City of Vernon; and WHEREAS.. the City Attorney of the City of Vernon and Special Counsel for the City of Vernon approve of the said co.mpromise and settlement ; and WHEREAS. said compromise is determined to be in the best interests of the city.. and that it is beneficial to accept said offer of settle- ment.. NOW. THEREFORE. BE IT RESOLVED that the offer of compromise and settlement of Abraham Chalk and Charles Ness.. doing business as Chalk Metal Company.. ls hereby accepted and approved.. and the City Treasurer is hereby authorized to draw a warrant of the City of 1. ... -\ .. . VernQn in theamo1.tnt of One Thousand Dollars ($1, OOeO. 00).. and to deliver said warrant to John W. Shenk, III, specia!cou.nsel for the City of Vernon. BE IT JrURTHEJR RESOLVED that JohnW.Shenk,III. specialcoun:sel, be and he is hereby authorized to deliver to.Abraham Chalked Charles Ness.. doing busines.s as Chalk Metal c.omparty..said warrant for One Thousand DoUars($l,OOO.OOl upon receiving from said payees a dismi,ssalQf said aforementioned lawsuit mda release of liability from AbrahamCha.1kand Charles Ness.. doi.ng business as Chalk }4etalCompany, in the usual form. PASSED AND ADOPTED at a regular adjourned meeting of the City Council of the Cltyof Vernon this 27th day of July, 1956. j;\ (" "'l I / f~ ./_ // ~f/ clJiL~ ~ " .' '.ayor " ATTEST: G, A.. ANDERsc:.1 City Clerk ~.h~: ..~. . C/ /~rJ ~~\.J J . cq,on-~ fM 2. SUPPORTING DOCUMENTS " L., COMPROMISE AND RELEASE KNOW ALL MEN BY THESE PRESENTS: That said ABRAHAM CHALK and CHARLESNESS~ doing business as CHALK METAL COMPANY.. for the sole consideration of One Thousand Dollars ($1.. 000. 00) to us in hand paid by the City of Vernon~ payor.. the receipt of which is herebyacknowledged~ have reIea.sed and discharged and by these presents do.. for ourselves and our heirs~ executors.. administrators, successors and assigns.. release and forever discharge said payor of and from any and all claims" demands.. damages.. actions~causes of action or suits at law or in equity of whatsoever kind or nature for or because of any matter or thing done.. omitted or suffered to be done by said payor prior to and including the date hereof~and particularly on account of the damages or injuries to property resulting or to result from the alleged flooding and! or water damage at the property kn.own as 2035 East 46th street in the city of Vernon.. which alleged flooding occurred on or about the 13th and 14th days of Febru.ary.. 1954. We understand said payor, byreason of agreeing to the comprolnise payment, admits absolutely no liability of any sort and has made no representattonsas to liability and said payor has made no agree- ment or promise to do or omit to do any act or thing not herein .set forth, and we further understand this release is made as a compromise to avoid expense and to terminate the controversy and! or claims for injury and damages of whatever nature.. known or unknown" including future develop- ments thereof in any way growing out of or connected with said flooding and I or water damage. We admit that no representation of fact or opinion has been made by the said payor~ or anyone on its behalf, to .induce this compromise with respect to the extent or nature of said dama.ges or injury and that th;e sum paid is solely by way of compromise of a. disputed claim.. and it is specifically agreed that this release shall be a complete bar to all claims or suits for injury or damage of whatsoever nature resulting o.r to result from said alleged flooding and! or water damage. this ? IN WITNESS WHEREOF we have hereunto set our hands day of August~ 1956. CHARLES NESS ABRAHAM CHALK and CHARLES NESS.. doing bUBine~ I CHALK METAL COMPANY.. By: ()~~n !/ Cf LLv ~ 1. .,., . < STA TE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) On August G ~ 1956" before me.. a Notary Public in and for the County 01 Los Angeles.. State of California.. personallyap- pe.ared .A BRAHAM CHALK" known to me to be the person whose name is subscribed to the within instrument~and acknowledged that he executed the same. My COIT:r,us:::>'" 26. 195'1 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) On August ~.. 1956~ before me~a Notary Public in and for the County of Los Ange.les.. State of California.. personallyap- peared CHARLES NESS~ known to me to be the person whose na.me is subscribed to the within in.strument~ anda.cknowledged that he executed the same. M-v Cnm:: ,l;'f. 2. .' I I JOHN W. SHENK, III ATTORNBY AT LAW 650 SOUTH SPRING STREET LOS ANGELES 14 August 17, 1956 Carson B. Hubbard City Attorney. City of Vernon 6308 Pacific Boulevard Huntington Park. California He: Chalk Metal Company V8. City of Vernon, et al My dear Judge: The above entitled ease has now been terminated by reason of the filing of the Request for Entry of Dismlasal of the action and the payment to Mr. Chalk and Mr. Ness, doing business as Chalk Metal Company, of the sum of $1,000.00. I have heretofore forwarded to you for the city the Com- p:romlse and.Releue Which I obtained from Chalk Metal Company re- lieving and absolving the City of Vernon from any liability whatsoever arlalng out of the flooding of the intersection of 46th and St. Charles Streets in the City of Vernon. Shortly after I was employed as special counsel for the City of Vernon I entered into certain negotiations with Mr. Isaac for the purpose of settling the cue, but because of an Uftwlll1n.gness on his-part to settle for a reasonable amount these negotiations were terminated. prior to the date of the trial!t was, of course, necessary to prepare the case for trtal, which included the interviewing of the elty employees of the City of Vernon, the preparation of trial briefs, exten-. stve research ~n the law and the preparation of Jury instructions for submission to the judge at the time of trial. Because of the importance of this matter to the City of Vernon and the connection that the matter had wtth the over aU aewag. prOblem of the city with the Cltyof Los Angeles, I was extremely cal'e- fut to try to prepare the ease 80 that it could be brought to its speediest conclusion in favor of the City of Vernon. 1. ..~-- ~ CaraonB. Hubbard Page 2. My time recorda show that I spent in exces. of sixty- eight hours' in the mvestlgation, reaearch and preparation of the cue 1b1" trlaJ. and in the negotiations for settlement. I believe the settlemellt figure was as low as we could possibly expect and const1tu.ted DO more than a payment for nuisance value. III addition, we saved the expeaae of a jvy trial which, as you know, could be quite high, and the cost of further counael fees for trial of the action. Based upon a possible liability tipre of $11, 500. 00 the settlement for less than one-tenth of thla amount seems to be quite advaRtageGU. We also obviated any . difficulties which we might bave run into by reason of the ever present problem with the City of Loa Angeles. I am enclosing my demand on the City of Vernon fot '. services .rendered in this maUer and would appreciate having you approve sueh demand if ;you feel that the claim 18 in order. I am enclosing a eoP1 of this letter for presentation to the City Council should you think it des lrable. Sincerely yours, JOHN W. SHENK,m JWS:rf Ene. CITY COUNCIL R. J. FURLONG, MAYOR G. H. ANDERSON C. H. MAILLIARD J. M. POXON L.C. MALBURG TELEPHONES CITY CLERK . - POLICE DEPT... .. FIRE DEPT. ENGINEERING DEPT. HEALTH DEPT.- - LUCLOW 5.8878 LUCLOW 7.5287 LUCLOW 8.2522 LOGAN 8.1 666 LUCLOW 7-7376 CITY HALL 4305 SANTA FE AVENUE i\ ;.....; 'J. .1" \\\.t' i .rJJ ~ (~..... i ~. ~~ \..:i,;\ r,\' \\. ~ V ~ VERNON 58, CALIFORNIA August 20.. 1956 To the Honorable City Council of the City of Vernon 4305 Santa Fe Avenue Vernon 58~ California Gentlemen: OFFICERS G. A, ANDERSON. CITY CLERK V. R. POXON, CITY TREASURER CARSON B. HUBBARD, CITY ATTORNEY H. A. BARNETT, CONSULTING ENGINEER DR. C. E. NEMETHI, HEALTH OFFICER J. S. COLTON, BUILCING ENGINEER LESTER C. HUSTED. FIRE CHIEF R. H, BOCKHACKER, POLICE CHIEF JOHN B. MOORE, ACMINISTRATIVE ASSISTANT TO THE CITY COUNCIL HASKINS 80 SELLS, AUCITORS IN REPLY REFER TO: Carson B. Hubbard City Attorney 6308 Pacific Blvd Huntington Park In re: Chalk Metal Company va. City of Vernon.. et al Encloged is original executed copy of CompromiS'e and Release covering the above litigation which should be preserved in the City's files. The Request for Dismissal of the above action haS' hereto- fore been filed through the office of John W. Shenk., m~ Associate Counsel. T rallS.mUted herewith is: the Demand of John W. Shenk~ nI~ for his aervices: in connection with said 1itigation~ together with a copy of his letter to me covering the s:ervicea rendered. 1 have approved the voucher and s:ubmit it herewith. Youra very truly. (Q~~3?~~ Carson B. Hubbard CBH/mf Encg.