Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Docket No.: N/A
Claimant: Lusamer Auto Body Corp.
Claimant’s Address: 27 Austin Street, Newark, New Jersey 07114
Settlement Amount: $131,311.11
Funding Source: 2026 Budget/Department of Public Works, Division of Motors/NW011-060-0602-71860-B2026
Additional Information:
Services continued after expiration of contract dated January 10, 2026.
body
WHEREAS, the City of Newark (“City”) utilized auto body repair services by Lusamer Auto Body Corp., 27 Austin Street, Newark, New Jersey 07114 (“Claimant”), from February 2026 through April 23, 2026; and
WHEREAS, there remains an outstanding balance for services provided to the City; and
WHEREAS, to avoid the costly expense of litigation, the City’s Corporation Counsel on behalf of the City desires to amicably resolve this matter with payment by the City, in exchange for Claimant’s execution of the Settlement Agreement and Release, attached hereto, as a full and complete release of the matter; and
WHEREAS, a settlement proposal has been made to resolve this pre-litigation matter in its entirety by payment in the total amount of One Hundred Thirty-One Thousand Three Hundred Eleven Dollars and Eleven Cents ($131,311.11) (“Settlement Sum”) and execution of a Settlement Agreement and Release, in the form attached hereto; 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 of the proposed Settlement Sum and execution of the Settlement Agreement and Release.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City of Newark’s Corporation Counsel (“Corporation Counsel”) is hereby authorized on behalf of the City of Newark (“City”) to execute and accept the terms of the Settlement Agreement and Release attached hereto.
2. Upon receipt by the Corporation Counsel of the fully executed Settlement Agreement, and any other documents necessary, the Acting Director of the Department of Finance is hereby authorized and directed to issue payment in the amount of One Hundred Thirty-One Thousand Three Hundred Eleven Dollars and Eleven Cents ($131,311.11), which payment shall be made payable to Lusamer Auto Body Corp., 27 Austin Street, Newark, New Jersey 07114.
3. Annexed hereto is the Certification of Funds issued by the Acting Director of the Department of Finance, City of Newark, which states that there are available sufficient legally-appropriate funds in the amount of One Hundred Thirty-One Thousand Three Hundred Eleven Dollars and Eleven Cents ($131,311.11) from the 2026 Budget/Department of Public Works, Division of Motors/NW011-060-0602-71860-B2026 for the purpose set forth herein.
4. 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 and Release in the Office of the City Clerk.
5. This Resolution shall be effective upon adoption in accordance with applicable State Law.
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 the Corporation Counsel on behalf of the City of Newark to enter into and execute a Settlement Agreement and Release to settle a claim with Lusamer Auto Body Corp., 27 Austin Street, Newark, New Jersey 07114 (“Claimant”), in the amount of One Hundred Thirty-One Thousand Three Hundred Eleven Dollars and Eleven Cents ($131,311.11), in exchange for a complete Release of any potential claims against the City arising out of the auto body repair services.