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Home My WebLink AboutLINCOLN CLUB OF ORANGE COUNTY - 2002-02-185/: N The Claremont Institut Center for Constitutional Jurisprudence :J January 14, 2003 _ w Mr. Scott Field --- r ' Assistant City Attorney = City of Huntington Beach P.O. Box 190 � 2000 Main Street o1 Huntington Beach CA 92648 i Re: The Lincoln Club of Orange County, et al. v. City of Anaheim, et al. Dear Scott: Enclosed is the fully executed original "Settlement Agreement and Release of Claims" in the above -referenced matter. Please let me know if you require anything else from my end to bring this matter to a conclusion. If not, I look forward to receipt of your check for the agreed - upon sum for settlement of attorneys fees and costs, made out to: The Lincoln Club of Orange County. You should transmit the check to me at the address listed below. Best egards e"o, � John C. Eastman w rr _ n c/o Chapman University School of Law * One University Drive; Orange, California 92866 * (714) 628-2500 * www.claremont.org • SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Settlement Agreement and Release of Claims ("Settlement Agreement") is made and entered into as of December le , 2002, between THE LINCOLN CLUB OF ORANGE COUNTY, a California non-profit mutual benefit corporation, on behalf of itself and its members; THE LINCOLN CLUB OF ORANGE COUNTY STATE PAC, THELINCOLN CLUB OF ORANGE COUNTY INDEPENDENT EXPENDITURES PAC, (collectively "Lincoln Club") and the CITY OF HUNTINGTON BEACH, CALIFORNIA, a municipal corporation ("Huntington Beach"). RECITALS A. On September 20, 2002, the Lincoln Club filed an action in the United States District Court for the Central District of California, Southern Division, entitled The Lincoln Club of Orange County, et al. v. City of Anaheim, et al, Case No. SACV 02-874 AHS (MLGx) (the "Lawsuit),, challenging the constitutionality of Section. 2.070.050(b) . of the Huntington Beach Municipal Code (hereafter, "Independent Contribution Limitation"). B. The United States District Court issued a Temporary Restraining Order enjoining the enforcement of the Independent Contribution Limitation on September 24, 2002. C. On October 3, 2002, after briefing by the Lincoln Club and Huntington Beach, this court issued a preliminary injunction, enjoining the enforcement of the Independent Contribution Limitation. D. The Lincoln Club and Huntington Beach have mutually determined to resolve all claims, including attorneys' fees and court costs by this Settlement Agreement and the Stipulated . Judgment.. Stipulation for . Entry of Judgment filed in the Lawsuit (hereafter "Stipulated Judgment' AGREEMENT 1. Within fifteen (15) calendar days of the date of entry of judgment in the Lawsuit, Huntington Beach shall pay to the Lincoln Club, by check made payable to The Lincoln Club of Orange County in the amount of Twelve Thousand Five Hundred Dollars ($12,500.00). 2. The Lincoln Club, for itself and its directors, officers, members, employees, hereby fully and expressly discharges and covenants not to sue Huntington Beach or its council members, officers, employees, or agents, from any and all causes of action, liabilities, rights, costs, expenses, or claims of whatever character, which the Lincoln Club has or may have asserted against them based on or in any way related to the allegations contained in the Lawsuit. 1 • 3. The City, for itself and its directors, officers, agents and employees, hereby fully and expressly discharges and covenants not to sue the Lincoln Club or its directors, members, officers, agents and employees from any and all causes of action, liabilities, rights, costs, expenses, or claims of whatever character, which Huntington Beach has or may have asserted against them based on or in any way related to the allegations contained in the Lawsuit or any defenses thereto. 4. The parties understand and agree that this Settlement Agreement includes all claims, both known and unknown. The parties acknowledge that they expressly waive any and all rights that they have, or may have under California Civil Code Section 1542, which provides as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAOVR AT THE TIME OF EXECUTING THE RELEASE, WHICH IFKNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 4. The parties expressly, knowingly and voluntarily waive and relinquish any and all rights under provisions of comparable, equivalent or similar statutes, principles of common law or other decisional law of the United States. 5. The parties acknowledge that no representation, promise or inducement has been made other than as set forth in this Settlement Agreement and the Stipulated Judgment and that those two documents express the entire agreement among the parties. 6. This Settlement Agreement shall be interpreted and governed by the laws of the State of California and construed as if drafted by all parties hereto. 7. This Settlement Agreement shall be effective only if the United States District Court enters Judgment in the Lawsuit in accordance with the Stipulated Judgment. Dated: December A 2002 THE LINCOLN CLUB OF ORANGE COUNTY; THE CLUB OF ORANGE CO ATE PAC; THE LINCOLN CLUB ORANGE OUNTY INDEPENDE ENDITURES AC; 2 D. Capaldi, President Dated: December Af, 2002 THE LINCOLN CLUB OF ORANGE COUNTY; THE CLUB OF ORANGE COUNTY STATE PAC; THE LINCOLN CLUB OF ORANGE COUNTY INDEPENDENT EXPENDITURES PAC; By: `� f Vickie Talley, Secretary APPROVED AS TO FORM: Dated: December 5, 2002 By: < --a� Jo . Eastman, Attorney for THE LINCOLN CLUB OF ORANGE COUNTY, THE LINCOLN CLUB OF ORANGE COUNTY STATE PAC and THE LINCOLN CLUB OF ORANGE COUNTY INDEPENDENT EXPENDITURES PAC Dated: December , 2002 CITY OF HUNTINGTON BEACH, a municipal corporation, By: G,� Ray Silv , City Administrator APPROVED AS TO FORM: JENNIFER McGRATH, City Attorney Dated: December , 2002 By: Scott Field, Assistant City Attorney Attorneys for the CITY OF HUNTINGTON BEACH 3 ORDINANCE NO. 3599 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH REPEALING SECTION 2.07.050(b) OF THE HUNTINGTON BEACH MUNICIPAL CODE REGARDING THE CONTRIBUTION LIMITATON TO INDEPENDENT EXPENDITURE COMMITTEES CONTAINED IN THE CITY OF HUNTINGTON BEACH CAMPAIGN REFORM LAW WHEREAS, the City Council adopted in 1994 the "City of Huntington Beach Campaign Reform Law"; and At issue in the case entitled Lincoln Club v. City of Irvine, 292 F.3d 934 (9`h Cir. 2002), was a challenge to a campaign regulation applicable to contributions made to persons or committees engaged in making independent expenditures in connection with elections; and In the Lincoln Club decision, the Ninth Circuit held that, to the extent the Irvine regulation prohibited any person or committee from making independent expenditures where they had accepted contributions in excess of the contribution limit amounts, it regulated campaign expenditures,. not campaign contributions, and consequently; was subject to strict judicial. scrutiny, a standard of judicial review. under which virtually no legislation can survive; and The Huntington Beach Campaign Reform Law also regulates contribution to independent committees; and In Lincoln Club of Orange County, et al. v. City of Huntington Beach, et al., U.S. District Court Case No. SACV 02-874 AHS (MLGx), a preliminary injunction was granted against the City's contribution limit to independent expenditure committees; and Based on the current state of the law, the City desires to end this dispute by entering into a settlement and a stipulated judgment, and repealing the regulation. The City may choose to again regulate the area of independent expenditures if there is a material change in case law, or after January 1, 2008, whichever occurs first; NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That Section 2.07.050(b) of the Huntington Beach Municipal Code is hereby repealed. SECTION 2. This ordinance shall take effect thirty days after its adoption. G:`FIELU2002 OrdinanceTampaign Contributions 11-26.doc PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the moist day of January , 2()f)27003. ATTEST: Eonnie %roc ay, City Clerk r,By Dep6tY,eACi6 Clerk REVIEWED AND APPROVED: City 4kZministrator Mayor APPROVED AS TO FORM: C VC ity Attorn r4wiz- INITIATED AND APPROVED: City Atto L1 fmbZ 2 GAFIELD\2002 Ordinance\Campaign Contributions I t-26.doc r r' Ord. No. 3599 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNiE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 6th day of January, 2003, and was again read to said City Council at an regular meeting thereof held on the 21st day of January 2003, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Coerper, Green, Boardman, Cook, Houchen, Hardy NOES: None ABSENT: Sullivan ABSTAIN: None I, Connie Brockway, CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on 2003. In accordance with the City.Charter of said City Connie Brockway, City Clerk Deputy City Clerk CONNIE BROCKWAY City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California By- -- - ------------ -- D ty City Cle