File #: 13-1455    Version: 1 Name: Settlement and Release - East Orange Water Commission
Type: Resolution Status: Filed
File created: 7/18/2013 In control: Law
On agenda: 8/7/2013 Final action: 8/7/2013
Title: Dept/ Agency: Law Action: ( ) Ratifying (X) Authorizing ( ) Amending Purpose: Settlement of Civil Litigation Docket No.: ESX-C-149-11 Claimant: City of Newark Claimant's Attorney: Clyde L. Otis III, First Assistant Corporation Counsel Attorney's Address: Law Department, Room 316, 920 Broad Street, Newark, New Jersey 07102 Settlement Amount: $1,767,113.19 Funding Source: East Orange Water Commission Additional Comments: Invitation: Corporation Counsel , August 6, 2013
Title
Dept/ Agency:  Law
Action:  (   ) Ratifying     (X) Authorizing     (   ) Amending
Purpose:  Settlement of Civil Litigation
Docket No.:  ESX-C-149-11
Claimant:  City of Newark
Claimant's Attorney:   Clyde L. Otis III, First Assistant Corporation Counsel
Attorney's Address:  Law Department, Room 316, 920 Broad Street, Newark, New Jersey 07102
Settlement Amount: $1,767,113.19
Funding Source: East Orange Water Commission
Additional Comments:  
Invitation: Corporation Counsel , August 6, 2013          
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WHEREAS, a suit was instituted in the Superior Court of New Jersey, Chancery Division, Essex County, captioned The Village of South Orange Township and City of Newark v. East Orange Water Commission, Superior Court of New Jersey, Docket Number: ESX-C-149-11, in which the City of Newark sued the East Orange Water Commission for unpaid water and sewer charges and interest thereon; and
 
WHEREAS, it has been determined that defendant owes certain amounts in unpaid water charges and interests thereon and a proposal has been made to resolve the portion of the litigation strictly related to the water charges and interest thereon by payment in the total amount of One Million Seven Hundred and Sixty Seven Thousand, One Hundred Thirteen Dollars and Nineteen Cents ($1,767,113.19); and
 
      WHEREAS, the Corporation Counsel based upon all facts and circumstances deems it in the best interest of the City of Newark to resolve said matter by operation of the proposed Settlement.
 
      NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
    1. The Corporation Counsel is hereby authorized on behalf of the City of Newark to execute and accept the terms of the Settlement Agreement and Release, attached hereto.
    1. Upon receipt by the Corporation Counsel of all documents deemed necessary, the Acting Director of the Department of Water and Sewer Utilities is hereby authorized and directed to accept payment in the amount of One Million Seven Hundred and Sixty Seven Thousand, One Hundred Thirteen Dollars and Nineteen Cents ($1,767,113.19), which shall be paid and credited to East Orange Water Commission bulk water accounts number 50719 and 5286 in the manner described in the Settlement Agreement and Release.
    1. A fully executed copy of the Settlement Agreement shall be filed in the Office of the City Clerk by the Corporation Counsel.
    1. This resolution shall be effective upon adoption in accordance with applicable State Law.
 
STATEMENT
 
This Resolution authorizes the Corporation Counsel on behalf of the City of Newark to enter into a Settlement Agreement and Release to settle a portion of civil litigation captioned The Village of South Orange Township and City of Newark v. East Orange Water Commission, Superior Court of New Jersey, Docket Number: ESX-C-149-11, in consideration of the payment by the East Orange Water Commission of the amount of $1,767,113.19, in exchange for Plaintiff's dismissal of water charge related claims against East Orange Water Commission and a complete release.  This does not authorize settlement of sewer related charges and such claims shall continue in litigation.