...Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Settlement of Civil Litigation
Docket No.: Not Applicable
Claimant: Spruce Industries, Inc.
Claimant's Attorney: CSG LAW
Settlement Amount: $105,853.68
Funding Source: Insurance Trust Fund
Additional Comments:
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WHEREAS, the Municipal Council by Ordinance 6PSF-F adopted on August 5, 2020 granted authority to the Corporation Counsel to settle any claim for a sum not to exceed $44,000.00 without the approval of the Municipal Council; and
WHEREAS, the claimant named above, Spruce Industries, LLC., provided janitorial supplies to the City of Newark; and
WHEREAS, a settlement proposal has been made to resolve this claim in its entirety by payment in the total amount of ($105,853.68 ) (“Settlement Sum”), and execution of a Settlement Agreement and Release; and
WHEREAS, there remains no outstanding balance for the goods provided to the City of Newark from October 2023 through November 2023; and
WHEREAS, to avoid the costly expense of litigation, the Parties and the City’s Corporation Counsel desire to amicably resolve this matter with payment by the City of the Settlement Sum, in exchange for Plaintiff’s execution of the Settlement Agreement and Release (attached) as a full and complete release of the matter; and
WHEREAS, the Corporation Counsel, based upon all facts and circumstances surrounding the matter, deems it is in the best interest of the City to resolve this matter by payment in the amount set forth above; and
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Upon receipt by the Corporation Counsel of the fully executed Settlement Agreement, the Assistant Director of the Department of Finance is hereby authorized and directed to issue payment in the amount of ($105, 853.68) which payment will be made payable to Spruce Industries Inc.,759 E Lincoln Ave, Rahway, New Jersey 07065.
2. Annexed hereto is the Certification of Funds issued by the Assistant Director of the Department of Finance, City of Newark, which states that there are available sufficient legally-appropriate funds from Business Unit NW025, Dept. ID 25T, Division. Project 5T25 and Account #96320 in the amount of ($105,853.68) for the purpose set forth herein.
3. A copy of the Comptroller's Certification shall be filed in the Office of the City Clerk along with this Resolution by the Corporation Counsel.
4. The Corporation Counsel shall file a fully executed copy of the Settlement Agreement in the Office of the City Clerk.
5. This Resolution shall be effective upon adoption by Municipal Council.
6. The Settlement Agreement and Release does not admit, nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigation costs.
STATEMENT
This Resolution authorizes Corporation Counsel on behalf of the City of Newark to enter into and execute a Settlement Agreement and Release to settle claim with Spruce Industries Inc., Rahway, New Jersey 07065 in the amount of ($105,853.68), in exchange for Claimant’s settlement of any and all claims against the City of Newark and its employees, and a complete release.