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HomeMy WebLinkAboutLOGAN W. - 2002-05-20TO: FROM: DATE: SUBJECT: � s V G`F CITY OF HUNTINGTON BEACH c��l 2 [j. A 3 Inter -Department Communication _ ` i I _ Connie Brockway, City Clerk Scott Field, Assistant City Attorney July 10, 2002 Logan IV. v. City of Huntington Beach and National Junior Basketball League, OCSC Case No. 01 CC05234 Pursuant to the attached memo dated May 16, 2002, the City Attorney reported out the settlement of the above -referenced case on May 20, 2002. Enclosed is the Settlement Agreement in this case. We would appreciate if you would arrange for the Mayor to siri, the Agreement and you to attest to it. Please return the Agreement to me as it needs to be submitted to the Court in order to receive Court approval to the settlement; Court approval is required because the settlement involves a minor. Scott Field Assistant City Attorney Enclosures SF/g: 02memo/Brockway-Logan W. HB CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GAIL HUTTON, City Attorney DATE:. May 16, 2002 SUBJECT: Notice Provided Pursuant to Government Code Section 54957.1, Reporting Action Taken to Settle Logan W. v. City of Huntington Beach and National Junior Basketball League; OCSC Case No. 01 CC05234 Pursuant to settlement authority granted in closed session on Monday, May 6, 2002, the City has settled the matter of Logan W., a minor,. by and through his Guardian ad Litem, v. City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; Juan Guzman aka Juan Guzman-Adame; Orange County Superior Court Case No. 01 CC05234. The Council voted to extend settlement authority, as follows: 7 Ayes; 0 Noes; 0 Abstentions. The suit was settled for a total amount of $105,000 with the City's contribution being $25,000. The settlement is subject to court approval because it involved a minor. The case concerned allegations that the defendants negligently hired and retained ..an individual who molested Plaintiff, a minor. GAIL HUTTON City Attorney GH/ab CC' Ray Silver, City Administrator. Connie Brockway, City Clerk Bill Workman, Assist. City Administrator Karen Foster, Risk Manager Closed/0' Report//Logan W-minor Notice SET&MENT AGREEMENT AND RELEAE THIS SETTLEMENT AGREEMENT AND RELEASE ("Settlement Agreement") is made and entered into this day of 2002 by and between Logan Woollen, a minor, by and through his Guardian ad Litem, Geoffrey Wooller, ("Plaintiffs"); City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; ("Defendants") and North American Specialty Insurance Company ("Insurer") for the purpose of settling the claims, controversies and disputes among the aforesaid parties arising out of incidents in 1999 and 2000. RECITALS A. Said Plaintiffs have presented claims against Defendants in an action in the Superior Court of the State of California, for the County of Orange — Central Justice Center, Case NO: 01 CC05234, arising out of incidents in 1999 and 2000 B. Pursuant to Defendants' motions for summary judgment, judgments in favor of Defendants and against the other two plaintiffs in said action, Geoffrey Wooller and Jerilynne Wooller, individually, have been entered by the court. In consideration for, -this settlement agreement and release, Defendants have waived their costs against said Plaintiffs and said Plaintiffs in turn have waived any right to appeal said judgments. C. Defendant City of Huntington Beach is self insured and has agreed to contribute cash in the amount of $25,000 towards said settlement. The remaining $80,000 of said settlement, which totals $105,000, will be paid on 1 behalf of defend* National Junior Basketball Leagu&y it's Insurer North American Specialty Insurance Company. D. North American Specialty Insurance Company is the Insurer of National Junior Basketball League and as such would be obligated to' pay any judgment against it covered by its policy. E. . The parties desire to enter into this Settlement Agreement to discharge all claims which are the subject of the First Amended Complaint (hereinafter "Complaint"), upon the payment of the settlement amounts, which terms and conditions are set forth herein. F. This settlement agreement and release, and the obligations thereunder, are conditioned on the court's approval of Logan Wooller's petition for minor's compromise in said matter. /Y 'AGREEMENT • • The parties hereby agree as follows: 1. Release and Discharge In consideration of the payments called for herein, the Plaintiffs hereby completely release and forever discharge the Defendants and the Insurer, and their past, present and future officers, directors, stockholders, attorneys, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors, and successors in interest, and assigns and all other persons, firms or corporations with whom any of the former have been, are now or may hereafter be affiliated, of and from any and all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, costs, expenses and compensation of any nature whatsoever, whether based on a tort, contract or other theory of recovery, and whether for compensatory or punitive damages, which the Plaintiffs now have, or which may hereafter accrue or otherwise be acquired, on.account of, or in any way growing out of, or which are the subject of, the Complaint (and all related pleadings) including, without limitation, any and all known or unknown claims for bodily and personal injuries to Plaintiffs, and the consequences thereof, which have resulted or may result from the alleged negligent acts or omissions of, or breaches by the Defendants. This release shall be a fully binding and complete settlement between the Plaintiffs, the Defendants, and the Insurer and all parties represented by or claiming through the Plaintiffs save only the executory provisions of this Settlement Agreement. 9 2.. Payments In consideration of the release set forth above, the Defendants and the Insurer hereby agree to pay to the Plaintiffs the following sums in the following manner: a. The sum of $36,054.00 for cash consisting of $25,000.00 paid by Defendant City of Huntington Beach and $11,054.00 paid on behalf of National Junior Basketball League, to the Plaintiffs and for attorney fees. b. The Periodic Payments described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments"). All sums set forth herein constitute damages on account of personal injuries or sickness, within the meaning of Section 104(a)(2) of the Internal Revenue Code of 1986, as amended. 3. Right to Purchase an Annuity For .its own convenience, the Insurer or its Assignee may fund its obligation as described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments") through the purchase of an annuity from The Travelers Insurance Company.. The life insurance company at the direction of the Insurer or its Assignee shall mail all deferred payments directly to the Plaintiffs described in Addendum No. 1. The Plaintiffs shall be responsible for communicating a current mailing address to the Insurer or its Assignee, and for communicating any changes of his/her mailing address to the Insurer or its Assignee in a reasonable and prompt manner. Any delay in payment due to Plaintiffs' failure to so inform the Assignee will result in no penalty to the Defendants or the Insurer for any reason. 4. Attorney Fees Each party hereto shall bear all attorney fees and costs arising from the actions of its own counsel in connection with the Complaint, Settlement Agreement and all matters and documents referred to herein except as specifically provided in Paragraph 2a. The attorney fee provided for in Paragraph 2a is being made by the Insurer as part of the settlement on behalf of the Plaintiffs. 5. Payee's Beneficiary Any payments to be made after the death of any Payee pursuant to the terms of the Settlement Agreement shall be made to such person or entity as shall be designated in writing by Plaintiffs to the Insurer or the Insurer's Assignee. If no person or entity is so designated by Plaintiffs, or if the person designated is not living at the time of the Payee's death, such payments shall be made to the Estate of the Payee. No such designation, nor any revocation thereof, shall be effective unless it is in writing, and delivered to the Insurer or the Insurer's Assignee. The designation must be in a form acceptable to the Insurer or the Insurer's Assignee before such payments are made. 6.. General Release Subject to The Recitals, the Plaintiffs hereby acknowledge and agree that the release set forth in Section 1 hereof is a general release and expressly waive and assume the risk of any and all claims for damages which exist as of this date, but which the Plaintiffs do not know of or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect his/her decision to enter into this Settlement Agreement. The Plaintiffs therefore waive all 5 rights or benefits which thd6ow have or in the future may hav6der the terms of Section 1542 of the Civil Code of the State of California, which Section reads as follows: Section 1542. General Release —Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor. The Plaintiffs further agree that he/she has accepted" payment of the sums specified herein as a complete compromise of matters involving disputed issues of law and fact and fully assume the risk that the facts or the law.may be otherwise than believed or understood. 7. Delivery of Dismissal Order Upon satisfaction and compliance with the Recitals, counsel for the Plaintiffs will deliver to counsel for the Defendants and Insurer an order of dismissal with prejudice of the civil action described in Recital A above. 8. Warranty of Capacity to Execute Agreement The Plaintiffs represent and warrant that no other person or entity has or has had any interest in the claims, demands, obligations, or causes of action referred to in this Settlement Agreement, that he/she has the sole and exclusive right to receive sums specified in it, and that he/she has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action referred to in this Settlement Agreement. 9. Disclaimer of Liability The Plaintiffs agree and acknowledge that payment of the sums specified in this Settlement Agreement are a full and complete compromise of matters involving disputed issues; that nei* payment of the sums by the Defe*ts and Insurer nor the negotiations for this settlement (including all statements, admissions, or communications) by the Insurer, the Defendants, or their attorneys or representatives shall be considered admissions by any of said parties and same is hereby expressly denied by all parties; and that no past or present wrongdoing on the part of the Defendants shall be implied by such payment or negotiations. 10. Indemnity Plaintiffs agree to indemnify and save harmless the Defendants and the Insurer from any and all claims or liens presently existing against the settlement herein by any person, entity, or corporation. 11. Entire Agreement and Successors in Interest This Settlement Agreement contains the entire agreement between the Plaintiffs, the Defendants, and the Insurer with regard to the matters set forth in it and shall be binding upon and inure to the, benefit of the executors, administrators, personal representatives, heirs, successors and assigns of each. 12. Construction by State Law This Settlement Agreement is entered into in the State of California and shall be construed and interpreted in accordance With its laws. 13. Representation of Comprehension of Document In entering into this Settlement Agreement, Geoffrey Wooller, Guardian ad Litem for Logan Wooller, a Minor, represents that he is more than eighteen (18) years of age and has relied upon the advice of personally selected counsel and that the terms .of the Settlement Agreement ho been completely read and explair0and that those terms are fully understood and voluntarily agreed to. 14. Additional Documents All parties agree to cooperate fully and execute any and all documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. 15. Payee's Rights To Payments Plaintiffs acknowledge that the Periodic Payments cannot be accelerated, deferred, increased or decreased by the. Plaintiffs or any Payee; nor shall the Plaintiffs or any payee have the power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof; by assignment or otherwise. 16. Nonassignment by Plaintiffs The periodic payments to be received by Plaintiffs as described more specifically in Addendum No. 1 attached. hereto (the "Periodic Payments") are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Plaintiffs. 17.. Consent to Qualified Assignment Plaintiffs acknowledge and agree that the Defendants and/or the Insurer may make a "qualified assignment" within the meaning of Section 130(c) of the Internal Revenue Code of 1986, as amended, of the Defendants' and/or the Insurer's liability to make the Periodic Payments set forth in Addendum No. 1 attached hereto (the "Periodic Payments") to The Travelers Life and Annuity Company ("the Assignee"). The Assignee's obligation for payment of the Periodic Payments shall -be no greater than -' that of Defendants and/Ole Insurer (whether by judgment or0reement) immediately preceding the assignment of the Periodic Payments obligation. Any such assignment, if made, shall be accepted by the Plaintiffs without right of rejection and shall completely release and discharge the Defendants and the Insurer from the Periodic Payments obligation assigned to the Assignee. The Plaintiffs recognize that, in the event of such an assignment, the Assignee shall be the sole obligor with respect to the Periodic Payments obligation, and that all. other releases with respect to the Periodic Payments obligation that pertain to the liability of the Defendants and the Insurer shall thereupon become final, irrevocable and absolute. 18. It is further understood and agreed by the undersigned that, with the exception. of the $36,054.00 cash payable upon approval of this Agreement as provided above, all future payments hereunder may, at the option of the Insurer, or its assignee, The Travelers Life and Annuity Company be funded by the..purchase of an annuity from The Travelers Insurance Company. The Assignee will provide for payments as described more specifically in Addendum No. 1. 19. It is fully understood and agreed that this Release covers all claims asserted., it being the intent of the undersigned Releasing Party to fully extinguish every and all claims against anyone allegedly responsible for injuries or damages sustained as a direct or indirect result of the occurrences in 1999 and 2000. 20. Tax Consequences It is further understood among the parties that those parties receiving monies hereunder have not relied upon any representations, expressed or implied, made by the Defendants, the Insurer or their attorneys or representatives, as to the possible tax 9 ADDENDUM NO. 1 Description of Periodic Payments Payee: Logan Wooller GUARANTEED. LUMP SUM PAYMENTS $ 18,500 TO BE PAID ON SEPTEMBER 3, 2004 $ 30,000 TO BE PAID ON SEPTEMBER 3, 2011 $ 45,000 TO BE PAID ON SEPTEMBER 3, 2016 $160,000 TO BE PAID ON SEPTEMBER 3, 2036 BENEFICIARY: The Estate of Logan Wooller _. . . SEP-24.2002 10:58AM N011 s Schechter 714-558-9091 _ NO.7022—P. 4 anw+ aaATr "T►,ovr Ark M4 ....a.. ar nualow. a c ad&ew: FOR Cowry USE avr.yIM icenneth C. Jones, #132740 Hollins - Schechter Attorneys at.Law 1851 E. First Street, 5th Floor te�rr►► 3��(S Santa Ana, CA 92705 Tezrwora: No.: (714) 5 5 8 - 9119 FAx Ro. mpib . (714) 5 5 8 -9 0 91 �r . FMALADDRESS foloR7rr0: ATTvwrerion Logan W. and.Qeotfxay W SUPERIOR COURT of CALIFO?MIA cvUrilY OF. Oran e Dov srrwRrAai_as: 700 Civic Center Drive,f West s MA&W.Aooaess: Same f.Y IS�A�cp firl'APOZIPc00E: Santa Ana, CA 92701 � kw&wwJ : Central CASE NAME: Logan .W. v. City of Huntington Beach r ORDER APPROVING COMPROMISE OF CUUM ` :005 I�,MINOR_ nINCOMPMNTPERSON OjCC234 1. PetIdaner (name): Geoffrey W. , guardian ad litem to Logan W. , a minor , has petitioned for the approval of the proposed compromise of claim. This matter came on for hearing on (dace): at (time): G� Q'0 In Dept.: �'i '5 r a � t .J . 2. Relationship to claimant Petitioner is clatmants: a. (x] Parent b.1 "Guardian ad (item C. L Guardian. d. Conservator. e. (,_ Other (sp6dff): 3. Clalmant(narne): Logan W. a. 191 Is a minor. b. [- 1 Is an incompetent person. 4. defendant The Balm to be compromised is asserted against (name of seftcing Cefer►dant ordefendant's (the 'payer')): City of Huntington Beach and National Junior Basketball League �G� THE COURT' ORDERS � ( J J 5. The peon is granted and the compromise Is approved. >Ih the �m�n� °f - S. The payer shall disburse the proceeds of the settlement approved by this order in the following manner. a Payment of fees and expenses Fees andexpenses shall be paid by one or Mors checks or drafts, drawn payable to the order of the petl8oner and the petitioners attorney, If any, or directly to those entMed to receive payment, fur the following items of expense or damage, which are hereby authorized to be paid out of the proceeds of settlement (1) C� .Attorneys fees In the amount of SAL) Payable to (spedi')r)-Hollins - Schechter (2) . F D . Relmbursement for medical and other expenses paid by the petitioner In the amount of: $ � payable to the petitioner. Juaeal Card Of Cjvftro MC-M pkw.hrwrr 1.2W21 VKUtKArrKVVIMU W!'Wr►iVIORR: Vr' %;6MQ1 CA Ru4a of Ca rl. r%Aw Ve era 7J SEF.14.20.02 10:58AM Hollins Schechter 714-558-9091, NO.7022'P. 5 0 We CA8EW-ME: Logan W.. v. City of Huntington Beach o�seNUMaeR _ OtCCO5234 6. a. (3) Medical, hospital, ambulance, nursing, and other flke w pensee In the total amount of: $ payable as folio": m Payee (mm)-. (111) Payee (name): (a) Address: (a) Address: (b) Amount. (b) Amount (o)' Payee (name): cry) Payee (name): (a) Address: (a) Address: (b) Amount (b) Amount Continued (d there are sddltfona/payees; a llsf of such paysea.must Oe attached to fhls Farrrr as Aftactrmen( 6ap). j (4) i.XJ Otherauttlorizedpayments (soeOfy):Costs of litigation (19,269.05) and lien for liability expert, Allan Weicler (3,017.00), payable to petitioner's attorneys,. Hollins — Schechter. (5) �Y�. Total allowance for Tees and expenses: t q � /(a 53 b. Balance The balance of the settlement proceeds shalt be disbursed as follows- (1) By one or more chscl% or drafts In the total amount of (specify): $ dmvm payable to the order of the pett0oner as trustee for the claimant Each such check or draft shall bear an endorsement on the face or reverse that a Is for deposit in an Interest-0eering, federeify insured account In the name of the petitioner as trustee for the claimant, and no withdrawals. shall be made from the account without a written court order (a `blocked account). (2) Structure settlement / annuity -term: Purcbase sum : S Js.•Y Company: E l 2 Rating of Company: /14-+ \1 By whom: , i i Licensed to do business in California Annuity payout schedule . SEE ATTACHMENT Payment terms (if any payment to minor is due before minor attains the age of 18, petitioner shall request its deposit. into an interest bearing, federally insured blocked i account or an interest bearing trust fund pursuant to Probate Code Section 3611(b) ). 7. . Blocked accounts tf the court orders distribution of the balance Into a blocked account or accounts under item 6b(1), it further orders: a. Within 48 fours of receipt of a check or draft described In Item 6b(1), the petitioner and fie petitioner's attorney, if any, must deposit the check or drag In the petitioners name as trustee for the dalmant in a blocked account at (specrTy name, branch, and address ofeac r dapowtary): . b, The petitioner and the petitioners attorney, if any, must deliver to each depository at the time of deposit time copies of the Order to DeposU Money into Blocked Accowd ('Order'), which Is signed contemporaneously with this order, and three copies of the Re vOt and Acknow/edmenf of Order to Deposit Money Into Blocked Account ('Recer'pt7. The petitioner or Me petfonees attorney must file a copy of" Reoelptwith this court within 15 days of the deposit • The sole responsibilities of the petitioner are to place the balance In a blocked account or accounts and to timely Me a copy of the Receipt. MGJs, over. kwsy t.2�1 _ Vep 27,3 3 4 RJDER AAPROVING COMPROMISE OF CLAM— SEP.24.2002 10:,59AM Hollins Schechter 714-558-9091 NO.7022—P.' 6 CASENAME: Logan W. v.' Cierof Hun t Aft NUMBER OOCCO5234 7, c. The balance of fid gd?11& iefit'proceeds deposl6sd'ffi a Mocked account under ROM WI) maybe withdrawn only as follows (check only (1) or (2)): (1) { No withdrawals of principal or interest may be made from the blocked account or accounts without a written order under this case name and number, signed by a Judge, and bearing the seal or this court, The money oa deposit Is net subject to escheat. (2) The blocked account or accounts belong to a minor. The minor was bom on (date): No withdrawals of principal or interest may be made Rom the blocked account or accounts without a written order under this case name and number, signed by a Judge, and bearing the seal of this tourt until the minor attains the age of 18 years. When the minor attains the age of 18 years, the depository, without further order of this court Is authorised and directed to pay by check or draft diregay to the former minor, upon proper demand, all moneys including Interest deposited under this order. The money on deposit Is not subject to escheat. B. Authortzation to agecute settlement documents The petitioner Is authorized to execute settlement documents as foflaws (check only orie), a. [ Upon recelpt of the full amount of the settlement sum approved by this order and the deposit of funds, the pMoner Is authorized and directed to wocule and deliver to the payer full, compiete, and final release and discharge of any and all claims and demands of the c[almant by reason of the accident or Incident described In the petttlon and the resultant injuries to the minor, and a property executed dismissal with prejudice. b. "XI The pettioner Is atrthodzed and directed to execute any and all documents reasonably necessary to carry out the terms of the setUerriva C. 1J The petitioner Is authorized and directed (specffy): 9. Bond is waived . �] fixed In the amount oT: S 10. A copy of this order shalt be served on the payer forthwith. 11. other ("cify): Date: 59P 2 Q Z 4QMC CAIRO CARMA JUDGE OF THE SUPERFOR BOVFM SPOWTVRB FOLLOWS IASTArT J'ir ` ' l""` r `' ORDER APPROVING COMPROMISE OF CLAIM � MOORE & RUTTER LAWYERS 2120 MAIN STREET, SUITE 250 NEAL MOORE _ Q(y 11 OCT Z OHIMTIA?G BEACH, CALIFORNIA 92648 LOS ANGELES COUNTY OFFICE MARK D. RUTTER CHARLES C. MCKENNA .. ,.. -� r TELEPHONE: (714) 374-3333 � }, » Yy�� �$� - "_ L 555 EAST OCEAN BLVD., SUITE 500 LONG BEACH, CA 90802 MICHAEL J. EMLING CI-T `! ar• ACSIMILE: (714) 374-9395 F 9 F f •' L TELEPHONE: (562) 435-4499 STEPHEN E. RASMUSSEN �; U1 IT I N G T GNI � � rEMIAIIL: law@moorerutter.com FAX: (562) 495-4299 OF COUNSEL October 24, 2002 Scott Field, Assistant City Attorney City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Re: Wooller v. City of Huntington Beach, et al. Your File: 98-222 Claimant : Logan W., Geoffrey W. and Jerilynne W. Date/Loss: 7/l/99 Our File : 2838 Dear Scott: As you requested, I am enclosing herewith a fully executed copy ofthe Settlement Agreement and Release in the above -entitled matter. Very truly yours, Chris Leonhard, Secretary to Neal Moore : cl Enclosure OCT, 24.2002 11:12AM Hollins Schechter 714-558-9091 • N0.1952 P. 2 L � SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE ("Settlement Agreement") is made and entered into this �/'f day of J M 2002 by and between Logan Wooller., a minor, by and through his Guardian ad Litem; Geoffrey Wooller, ("Plaintiffs"); City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; ("Defendants") and North American Specialty Insurance Company ("Insurer') for the purpose of settling the claims, controversies and disputes among the aforesaid parties arising out of incidents in 1999 and 2000. RECITALS A. Said Plaintiffs have presented claims against Defendants in an action in the Superior Court of the State of California, for the County of Orange — Central Justice Center, Case N0; 01 CC05234, arising out of incidents in 1999 and 2000 B. Pursuant to Defendants' motions for summary judgment, judgments in favor of Defendants and against the other two plaintiffs in said action, Geoffrey Wooller and Jerilynne Wooller, individually, have been entered by the court. In consideration for this settlement agreement and release, Defendants have waived their costs against said Plaintiffs and said Plaintiffs in turn have waived any right to appeal said judgments. C. Defendant City of Huntington Beach is self insured and has agreed to contribute cash in the amount of $25,000 towards said settlement. The remaining $80,000 of said settlement, which totals $105,000, will be paid on 01 OCT, 24.2002 11:13AM - Holl ns Schechter 714-558-9091 • NO.7952 P. 3 behalf of defendant National Junior Basketball League, by it's Insurer North . American Specialty Insurance Company. D. North American Specialty Insurance Company is the Insurer of National Junior Basketball League and as such would be obligated to pay any. judgment against it covered by its policy. E. . The parties desire to enter into this Settlement Agreement to discharge all claims which are the subject of the First Amended Complaint (hereinafter "Complaint"), upon the payment of the settlement amounts, which terms and conditions are set forth herein. F. This settlement agreement and release, and the obligations thereunder, are conditioned on the court's approval of Logan Wooller's petition for minor's compromise in said matter. OCT. 24.2002 11:.13AM Hollins Schechter 714-552-9091 NO.7952 P. 4 AGREEMENT The parties hereby agree as follows: 1. Release and Discharge In consideration of the payments called for herein, the Plaintiffs hereby completely release.and forever discharge the Defendants and the Insurer, and their past, present and future officers, directors, stockholders, attorneys, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors, and successors in interest, and assigns and all other persons, firms or corporations with whom any of the former have been, are now or may hereafter be affiliated, of and from any and all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, costs, expenses and compensation of any nature whatsoever, whether based on a tort, contract or other theory of recovery, and whether for compensatory or punitive damages, which the Plaintiffs now have, or which may hereafter accrue or otherwise be acquired, on account of, or in any way growing out of, or which are the subject of, the Complaint (and all related pleadings) including, without limitation, any and all known or unknown claims for bodily and personal injuries to Plaintiffs, and the consequences thereof, which have resuited or may result from the alleged negligent acts or omissions of, or breaches by the Defendants. This release shall be a fully binding and complete settlement between the Plaintiffs, the Defendants, and the Insurer and all parties represented by or claiming through the Plaintiffs save only the executory provisions of this Settlement Agreement. 3 OCT. 2.4. 2002 11:13AM Hollins Schechter 714-558-9091 NO.7952 P. 5 2. Payments in consideration of the release set forth above, the Defendants and the Insurer hereby agree to pay to the Plaintiffs the following sums in the following manner: a. The sum of $43,718.79 for cash consisting of $25,000.00 paid by Defendant City of Huntington Beach and $18,718.79 paid on behalf of National Junior Basketball League, to the Plaintiffs and for attorney fees. b. The Periodic Payments described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments"). All sums set forth herein constitute damages on account of personal injuries or sickness, within the meaning of Section 104(a)(2) of the Internal Revenue Code of 1986, as amended 3. Right to Purchase an Annuity For its own convenience, the Insurer or its Assignee may fund its obligation as described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments") through the purchase of an annuity from The Travelers Insurance Company. The life insurance company at the direction of the Insurer or its Assignee shall mail all deferred payments directly to the Plaintiffs described in Addendum No. 1. The Plaintiffs shall be responsible for communicating a current mailing address to the Insurer or its Assignee, and for communicating any changes of his/her mailing address to the Insurer or its Assignee in a reasonable and prompt manner. Any delay in payment due to Plaintiffs' failure to so inform the Assignee will result in no penalty to the Defendants or the Insurer for any reason. OCT-24.2002 11:14AM Hollins Schechter 714-558-9091 • NO.7952 P. 6 7 4. Attorney Fees Each party hereto shall bear all attorney fees and costs arising from the actions of its own counsel in connection with the Complaint, Settlement Agreement and all matters and documents referred to herein except as specifically provided in Paragraph 2a.- The attorney fee provided for in Paragraph 2a is being made by the Insurer as part of the settlement on behalf of the Plaintiffs. 5. Payee's Beneficiary Any payments to be made after the death of any Payee pursuant to the terms of the Settlement Agreement shall be made to such person or entity as shall be designated in writing by Plaintiffs to the Insurer or the insurer's Assignee. If no person or entity is so designated by Plaintiffs, or if the person designated is not living at the time of the Payee's death, such payments shall be made to the Estate of the Payee. No such designation, nor any revocation thereof, shall be effective unless it is in writing and delivered to the Insurer or the Insurers Assignee. The designation must be in a form acceptable to the Insurer or the Insurer's Assignee before such payments are made. 6. General Release Subject to The Recitals, the Plaintiffs hereby acknowledge and agree that the release set forth in Section 1 hereof is a general release and expressly waive and assume the risk of any and all claims for damages which exist as of this date, but which the Plaintiffs do not know of or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect his/her decision to enter into this Settlement Agreement. The Plaintiffs therefore waive all 5 OCT. 24. 2M 11:14AM Hol l ins Schechter 114-55HO91 N0. 7952 P. 7 rights or benefits which they now have or in the future may have under the terms of Section 1542 of the Civil Code of the State of California, which Section reads as follows: Section 1542. General Release —Claims Extinguished. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor. The Plaintiffs further agree that he/she has accepted payment of the sums specified herein as a complete compromise of matters involving disputed issues of law and fact and fully assume the risk that the facts or the law may be otherwise than believed or understood. 7. Delivery of Dismissal Order Upon satisfaction and compliance with the Recitals, counsel for the Plaintiffs will deliver to counsel for the Defendants and Insurer an order of dismissal with prejudice of the civil action described in Recital A above. 8. Warranty of Capacity to Execute Agreement The Plaintiffs represent and warrant that no other person or entity has or has had any interest in the claims, demands, obligations, or causes of action referred to in this Settlement Agreement, that he/she has the sole and exclusive right to receive sums specified in it, and that he/she has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action referred to in this Settlement Agreement. 9. Disclaimer of Liability The Plaintiffs agree and acknowledge that payment of the sums specified in this Settlement Agreement are a full and complete compromise of matters involving OCT.24-2002 11:15AM Hollins Schechter 714-558-9091 • NO.7952 P. 8 disputed issues; that neither payment of the sums by the Defendants and Insurer nor the negotiations for this settlement (including all statements, admissions, or communications) by the Insurer, the Defendants, or their attorneys or representatives shall be considered admissions by any of said parties and same is hereby expressly denied by all parties, and that no past or present wrongdoing on the part of the Defendants shall be implied by such payment or negotiations. 10. Indemnity Plaintiffs agree to indemnify and save harmless the Defendants and the Insurer from any and all claims or liens presently existing against the settlement herein by any person, entity, or corporation. 11. Entire Agreement and Successors in Interest This Settlement Agreement contains the entire agreement between the Plaintiffs, the Defendants, and the Insurer with regard to the matters set forth in it and shall be binding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, successors and assigns of each. 12. Construction by State Law This Settlement Agreement is entered into in the State of California and shall be construed and interpreted in accordance with its laws. 13. Representation of Comprehension of Document In entering into this Settlement Agreement, Geoffrey Wooller, Guardian ad Litem for Logan Wooller, a Minor, represents that he is more than eighteen (18) years of age and has relied upon the advice of personally selected counsel and that the terms of the 7 OCT.24.2002 11:15AM Hull ns Schechter 714-558-9091 NO.7952 P. Settlement Agreement have been completely read and explained and that those terms are fully understood and voluntarily agreed to. 14_ Additional Documents All parties agree to cooperate fully and execute any and all documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. 15. Payee's Rights To Payments Plaintiffs acknowledge that the Periodic Payments cannot be accelerated, deferred, increased or decreased by the Plaintiffs or any Payee; nor shall the Plaintiffs or any payee have the power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof; by assignment or otherwise. 16. Nonassignment by Plaintiffs The periodic payments to be received by Plaintiffs as described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments") are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Plaintiffs. 17. Consent to Qualified Assignment Plaintiffs acknowledge and agree that the Defendants and/or the Insurer may make a "qualified assignment" within the meaning of Section 130(c) of the Internal Revenue Code of 1986, as amended, of the Defendants' and/or the Insurer's liability to make the Periodic Payments set forth in Addendum No. 1 attached hereto (the "Periodic Payments") to The Travelers Life and Annuity Company ("the Assignee'). The Assignee's obligation for payment of the Periodic Payments shall be no greater than OCT.24.2002 11:15AM Hollins Schechter 714-558-9091 NO.7.952 P. 10 that of Defendants and r the Insurer whether b judgment or Jareement) immediate)� Y1 9 Y preceding the assignment of the Periodic Payments obligation. Any such assignment, if made, shall be accepted by the Plaintiffs without right of rejection and shall completely release and discharge the Defendants and the Insurer from the Periodic Payments obligation assigned to the Assignee. The Plaintiffs recognize that, in the event of such an assignment, the Assignee shall be the sole obligor with respect to the Periodic Payments obligation, and that all other releases with respect to the Periodic Payments obligation that pertain to the liability of the Defendants and the Insurer shall thereupon become final, irrevocable and absolute. 18. It is further understood and agreed by the undersigned that, with the exception of the $43,718.79 cash payable upon approval of this Agreement as provided above, all future payments hereunder may, at the option of the Insurer, or its assignee, The Travelers Life and Annuity Company be funded by the purchase of an annuity from The Travelers Insurance Company. The Assignee will provide for payments as described more specifically in Addendum No. 1. 19. It is fully understood and agreed that this Release covers all claims asserted, it being the intent of the undersigned Releasing Party to fully extinguish every and all claims against anyone allegedly responsible for injuries or damages sustained as a direct or indirect result of the occurrences in 1999 and 2000. 20. Tax_ Consequences It is further understood among the parties that those parties receiving monies hereunder have not relied upon any representations, expressed or implied, made by the Defendants, the Insurer or their attorneys or representatives, as to the possible tax OCT.24.2002 11:16AM Hollins Schechter 714-558-9091 NO.7952 H. 11 JUN-11-2001 DIXON FR*ringlet r-301 P.0lltolz r-are consequences of this agreement and that said parties receiving monies hereunder release the Defendants, the Insurer, and their attorneys and representatives from any and all liability in connection with any such tax consequences. 21. Confidentiality The parties agree that neither they nor their attorneys nor representatives shall reveal to anyone, other than as may be mutually agreed to In writing, any of the terms of this Settlement Agreement or any of the amounts, numbers or terms and condltlons of any sums payable to Payee(s) hereunder. 22. Egg Agreement This Settlement Agreement contains the entire agreement between Plaintiffs. Defendants and the Insurer with regard to the matters set forth herein. There are no other understandings or agreements, verbal or otherwise, in relation thereto, between the parties except as herein expressly set forth. 23. Effectiveness This Settlement Agreement shall become effective immediately following execution by all of the parties. Executed at this ` day of WITNESS: AttheAtt aamtiffs North America ecialty Insuranc ompany r Nuaraten ad teat, for Logan Wooller., a minor City of Huntington Beach National Junior Basketball League ; .ULI. 14. 1UU1 11:16AM Hol I ins Schechter 114-55d-M] M I'M N. 11 consequences of this ement and that said parties receivirlSonies hereunder release the Defendants, the Insurer, and their attorneys and representatives from any - and all liability in connection with any such tax consequences. 21. Confidentiality The parties agree that neither they nor their attorneys nor representatives shall reveal to anyone, other than as may be mutually agreed to in writing, any of the terms of this Settlement Agreement or any of the amounts, numbers or terms and conditions of any sums payable to Payee(s) hereunder. 22. Entire Agreement This Settlement Agreement contains the entire agreement between Plaintiffs, Defendants and the Insurer with regard to the matters set forth herein. There are no other understandings or agreements, verbal or otherwise, in relation thereto, between the parties except as herein expressly set forth. 23. Effectiveness This Settlement Agreement shall become effective immediately following„ execution by all of the parties. ~ ' 4 Executed at /0,' 0 , this day of ,2002. WITNESS: J Geoffrey Woolley -as _ Guardian ad Litem for Logan Woolley., a minor Attorney for the Plaintiffs CITY HUNTINGT N BEACH North Amer pecialty Mayor Ins �,e-Gompany APPROVED AS T FORM: /oc Cify Attorney 7.2 3.0 Z APPROVED AS TO FORM: Tt{Q` l Moore_ S ecial Counsel - W-Y4.20U2 11:11AM Hollins Schechter 114-55H U91 NU.1952 Y. lj ADDENDUM NO, 1 Description of Periodic Payments Payee: Logan Wooller GUARANTEED LUMP SUM PAYMENTS $ 15,000 TO BE PAID ON SEPTEMBER 3, 2004 $ 30,000 TO. BE PAID ON SEPTEMBER 3, 2011 $ 40,000 TO BE PAID ON SEPTEMBER 3, 2016 $135,452 TO BE PAID ON SEPTEMBER 3, 2036 BENEFICIARY: The Estate of Logan Wooller 11 CI i � Cic HB CITY OF HUNTINGTON BEACH Iu?�F-�` C� INTER -DEPARTMENT COMM UNICATIO4001 PLAY I I A G• 2 3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GAIL HUTTON, City Attorney .DATE: May 16, 2002 SUBJECT: Notice Provided .Pursuant to Government Code Section 54957.1, Reporting Action Taken to Settle Logan W. v...City of Huntington Beach and National Junior Basketball -League; OCSC Case No. 01 CC05234 Pursuant to settlement authority granted in closed session on Monday, May 6, 2002, the City has settled the matter of Logan W., a minor, by and through his Guardian ad Litem, v. City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; Juan Guzman aka Juan Guzman-Adame; Orange County Superior Court Case No. 01 CC05234. The Council voted to extend settlement authority, as follows: 7 Ayes; 0 Noes; 0 Abstentions. The suit.,was settled, for a total amount of $105,000 with the City's contribution being $25,000. The settlement is subject to court approval because it involved a minor. The case concerned allegations that the defendants negligently hired and retained an individual who molested Plaintiff, a minor. GAIL HUTTON City Attorney GH/ab cc: Ray Silver, City Administrator Connie Brockway, City Clerk Bill Workman, Assist. City Administrator Karen Foster, Risk Manager U_7 Closed/02 Report//Logan AV -minor Vonce File Notes Office of the City Clerk Huntington Beach, California O1- 29.02 ; MAj ot4 � Co Qom) } SIbN QM ►�Lvk� ft-vv W o� ���c�►•fi a-tvbl" P4-' �0 A SA L r"- A`Fz�1PEv PN (4) May 20, 2002 - Council/Agency—Vi linutes - Page 4 Reconvened City Council/Redevelopment Agency Meeting - 7:00 P.M. - Council Chambers City Council/Redevelopment Agency Roll Call Present: Green, Dettloff, Boardman, Cook, Houchen, Winchell, Bauer Absent: None City Attorney Announced Action Taken by City Council In Closed Session on May 6, 2002 Pursuant To Government Code Section 54957.1 To Settle Logan W. v. City of Huntington Beach and National Junior Basketball League; OCSC Case No. 01 CCO5234 - (120.80) City Attorney Gail Hutton announced that pursuant to settlement authority granted in Closed Session on Monday, May 6, 2002, the City has settled the matter of Logan W., a minor, by and through his Guardian ad Litem, v. City of Huntington Beach; National Junior Basketball League, A California Non- Profit Corporation; Juan Guzman aka Juan Guzman-Adame; Orange County Superior Court Case No. 01CC05234. The Council voted to extend settlement authority, as follows: 7 Ayes; 0 Noes; 0 Abstentions. The suit was settled for a total amount of $105,000 with the City's contribution being $25,000. The settlement is subject to court approval because it involved a minor. The case concerned allegations that the defendants negligently hired and retained an individual who molested Plaintiff, a minor. Pledge of Allegiance — by former Huntington Beach Mayor, Norma Brandel Gibbs. The Acting Assistant City Clerk Announced Late Communications Pursuant to the Brown Act (Open Meetings Act) Acting Assistant City Clerk Liz Ehring announced Late Communications regarding agenda items that had been received by the Office of the City Clerk following distribution of the agenda packet: Communication dated May 20, 2002 from Bob Polkow transmitting his opinion relative to the proposal submitted by the Public Works Department for the use of Proposition 40 funds for acquisition of the Bolsa Chica. Communication dated May 20, 2002 from the City Attorney's Office transmitting a the above - mentioned communication from Bob Polkow. Communication titled May 20, 2002, Agenda Item C-1a — Public Works Item 4.. Communication dated May 20, 2002 from Jim Martin in opposition to the proposed use of Proposition 40 funds for the Police gun Range clean-up and the Bolsa Chica acquisition. Communication titled Agenda Item C-a, Council Committee Report Recommendations for Prop 40 Funding & Request for Direction on request for funds. Communication dated May 17, 2002 from Tim Geddes transmitting his support of the Redevelopment Plan for Southeast Huntington Beach. Communication titled Southeast Coast Redevelopment Plan Public Hearing on 5-20-02. IJ it:!. i i.`l Ji emu, CA CITY OF HUNTINGTON BEACH f L, Inter -Department Communication TO: Connie Brockway, City Clerk FROM: Scott Field, Assistant City Attorney DATE: July 10, 2002 SUBJECT: Logan W. v. City of Huntington Beach and National Junior Basketball League, OCSC Case No. 01 CC05234 Pursuant to the attached memo dated May 16, 2002, the City Attorney reported out the . settlement of the above -referenced case on May 20, 2002. Enclosed is the Settlement Agreement in this case. We would appreciate if you would arrange for the May.:�r to the Agreement and you to attest to it. Please return the Agreement to me as it needs to be submitted to the Court in order to receive Court approval to the settlement; Court approval is required because the settlement involves a minor. Scott Field Assistant City Attorney Enclosures SF/a: 02memo/Brockkcay-Logan W. HB CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION . TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GAIL HUTTON, City Attorney DATE: May 16, 2002 SUBJECT: Notice Provided Pursuant to Government Code Section 54957.1, Reporting Action Taken to Settle Logan W. v. City of Huntington Beach and National Junior Basketball League; OCSC Case No. 01 CC05234 Pursuant to settlement authority granted in closed session on Monday, May 6, 2002, the City has settled the matter of Logan W., a minor, by and through his Guardian .ad Litem, v. City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; Juan Guzman aka Juan Guzman-Adame; Orange County Superior Court Case No. 01 CC05234. The Council voted to extend settlement authority, as follows: 7 Ayes; 0 Noes; 0 Abstentions The suit was settled for a total amount of $105,000 with the City's contribution being $25,000. The settlement is subject to court approval because it involved a minor. The case concerned allegations that the defendants negligently hired and retained an individual who molested Plaintiff, a minor. GAIL HUTTON City Attorney GH/ab cc: Ray Silver, City Administrator Connie Brockway, City Clerk Bill Workman, Assist. City Administrator Karen Foster, Risk Manager Closed/02 Report//Logan W-minor Notice SETWMENT AGREEMENT AND RELERE THIS SETTLEMENT AGREEMENT AND RELEASE ("Settlement Agreement") is made and entered into this day of 2002 by and between Logan Wooller.,_a minor, by and through his Guardian ad Litem, Geoffrey Wooller, ("Plaintiffs"); City of Huntington Beach; National Junior Basketball League, A California Non -Profit Corporation; ("Defendants") and North American Specialty Insurance Company ("Insurer") for the purpose of settling the claims, controversies and disputes among the aforesaid parties arising out of incidents in 1999 and 2000. RECITALS A. Said Plaintiffs have presented claims against Defendants in an action in the Superior Court of the State of California, for the County of Orange — Central Justice Center, Case NO: 01 CC05234, arising out of incidents in 1999 and 2000 B. Pursuant to Defendants' motions for summary judgment, judgments in favor of Defendants and against the other two plaintiffs in said action, Geoffrey Wooller and Jerilynne Wooller, individually, have been entered by the court. In consideration for this settlement agreement and release, Defendants have waived their costs against. said Plaintiffs and said Plaintiffs in turn have waived any right to appeal said judgments. C. Defendant City of Huntington Beach is self insured and has agreed to contribute cash.in the amount of $25,000 towards said settlement. The remaining $80,000. of said settlement, which totals $105,000, .will be paid on 1 behalf of defen*t National Junior Basketball Lea 9 u�bY it's Insurer North American Specialty Insurance Company. D. North American Specialty Insurance Company is the Insurer of National Junior Basketball League and as such would be obligated to pay any judgment against it covered by its policy. E. The parties desire to enter into this Settlement Agreement to discharge all claims which are the subject of the First Amended Complaint (hereinafter "Complaint"), upon the payment of the settlement amounts, which terms and conditions are set forth herein. F. This settlement agreement and release, and the obligations thereunder, are conditioned on the court's approval of Logan Wooller's petition for minor's compromise in said matter. . AGREEMENT • The parties hereby agree as follows: 1. Release and Discharge In consideration of the payments called for herein, the Plaintiffs hereby completely release and forever discharge the Defendants and the Insurer, and their past, present and future officers, directors, stockholders, attorneys, agents, servants, representatives, employees, subsidiaries, affiliates, partners, predecessors, and successors in interest, and assigns and all other persons, firms or corporations with whom any of the former have been, are now or may hereafter be affiliated, of and from any and 'all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, costs, expenses and compensation of any nature whatsoever, whether based on a tort, contract or other theory of recovery, and whether for compensatory or punitive damages, which the Plaintiffs now have, or which may hereafter accrue or otherwise be acquired, on account of, or in any way growing out of, or which are the subject of, the Complaint (and all related pleadings) including, without limitation, any and all known or unknown claims for bodily and personal injuries to Plaintiffs, and the consequences thereof, which have resulted or may result from the alleged negligent acts or omissions of, or breaches by the Defendants. This release shall be a fully binding and complete settlement between the Plaintiffs, the Defendants, and the Insurer and all parties represented by or claiming through the Plaintiffs save only the executory provisions of this Settlement Agreement. 3 • • 2.- Payments In consideration of the release set forth above, the Defendants and the Insurer hereby agree to pay to the Plaintiffs the following sums in the following manner: a. The sum of $36,054.00 for cash consisting of $25,000.00 paid by Defendant City of Huntington Beach and $11,054.00 paid on behalf of National Junior Basketball League, to the Plaintiffs and for attorney fees. b. The Periodic Payments. described more specifically in Addendum No. 1 attached hereto (the "Periodic Payments"). All sums set forth herein constitute damages on account of personal injuries or sickness, within the meaning of Section 104(a)(2) of the Internal Revenue Code of 1986, as amended. 3.' Right to Purchase an Annuity For its own. convenience, the Insurer or its Assignee may fund its obligation as described more specifically in Addendum No. 1 attached hereto (the "Periodic. Payments") through the purchase of an annuity from The Travelers Insurance Company. The life insurance company at the direction of the Insurer or its Assignee shall mail all deferred payments directly to the. Plaintiffs described in Addendum No. 1.- The Plaintiffs shall be responsible for -communicating a current mailing address to the Insurer or its Assignee, and for communicating any changes of his/her mailing address to the Insurer or its Assignee in a reasonable and prompt manner. Any delay in payment due to Plaintiffs' failure to so inform the Assignee will result in no penalty to the Defendants or the Insurer for any reason: Ll L_J 4. Attorney Fees Each party hereto shall bear all attorney fees and costs arising from the actions of its own counsel in connection with the Complaint, Settlement Agreement and all matters and documents referred to herein except as specifically provided in Paragraph 2a. The attorney fee provided for in Paragraph 2a is being made by the Insurer as part of the settlement on behalf of the Plaintiffs. 5. Payee's Beneficiary Any payments to be made after the death of any Payee pursuant to the terms of the Settlement Agreement shall be made to such person or entity as shall be designated in writing by Plaintiffs to the Insurer or the Insurer's Assignee. If no person or entity is so designated by Plaintiffs, or if the person designated is not living at the time of the Payee's death, such payments shall be made to the Estate of the Payee. No such designation, nor any revocation thereof,.shall be effective unless it is in writing and delivered to the Insurer or the Insurers Assignee. The designation must be in a form acceptable to the .Insurer or the Insurer's Assignee before such payments are made. 6. General Release Subject to The Recitals, the Plaintiffs hereby acknowledge and agree that the release set forth in Section 1 hereof is a general release and expressly waive and assume the risk of any and all claims for damages which exist as of this date, but which the Plaintiffs do not know of or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect his/her decision to enter into this Settlement Agreement. The Plaintiffs therefore waive all 5 rights or benefits which th1pnow have or in the future may have under the terms of Section 1542 of the. Civil Code of the State of California, which Section reads as follows: ; Section 1542. General Release —Claims Extinquished. A general release does riot extend to claims which the creditor does not know or suspect to exist in his favor at the time, of executing the releasewhich if known by him must have materially affected his settlement with the debtor. The Plaintiffs further agree that he/she has accepted _payment of the sums specified herein as a complete compromise of matters involving disputed issues of law and fact.and fully assume the.risk that the facts or the law may be otherwise than believed or understood. 7. Delivery of Dismissal Order Upon satisfaction and compliance with the Recitals, counsel for the Plaintiffs will deliver to counsel for the Defendants and Insurer an order of dismissal with prejudice of the civil action described in Recital A above. 8. Warranty of Capacity to Execute Agreement The Plaintiffs represent and warrant that no other person or entity has or has had any interest in the claims, demands, obligations, or causes of action referred to in this Settlement Agreement, that he/she has the sole and exclusive right to receive sums specified in it, and that he/she has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action referred to in this Settlement Agreement. 9. Disclaimer of Liability The Plaintiffs agree and acknowledge that payment of the sums specified in this Settlement Agreement are a full and complete compromise of matters involving t disputed issues; that neitio payment of the sums by the Defendants and Insurer nor the negotiations for this settlement (including all statements, admissions, or communications) by the Insurer, the Defendants, or their attorneys or representatives shall be considered admissions by any of said parties and same is hereby expressly denied by all parties; and that no past or present wrongdoing on the part of the Defendants shall be implied by such payment or negotiations. 10. Indemnity . Plaintiffs agree to indemnify and save harmless the Defendants and the Insurer from any and all claims or liens presently existing against the settlement herein by any person, entity, or corporation. 11. Entire Agreement and Successors in Interest This Settlement Agreement contains the entire agreement between the Plaintiffs, the Defendants, and the Insurer with regard to the matters set forth in it and shall be binding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, successors and assigns of each. 12. Construction by State Law This Settlement Agreement is entered into in the State of California and shall be construed and interpreted in accordance with its laws. 13. Representation of Comprehension of Document In entering into this Settlement Agreement, Geoffrey Wooller, Guardian ad Litem for Logan Wooller, a Minor, represents that he is more than eighteen (18) years of age and has relied upon the advice of personally selected counsel and that the terms of the 7 Settlement Agreement h been completely read and ex lai and that those terms 9 p Y p are fully understood and voluntarily agreed to. 14. Additional Documents All parties agree to cooperate fully and execute any and all documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. 15. Payee's Rights To Payments Plaintiffs acknowledge that the Periodic Payments cannot be accelerated, deferred, increased or decreased by the Plaintiffs or any Payee, nor shall the Plaintiffs j or any payee have the power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof, by assignment or otherwise. 16. Nonassignment by Plaintiffs The periodic payments to be received by Plaintiffs as described more specifically in.Addendum.No. 1 attached hereto (the "Periodic Payments") are not subject in any manner to, anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Plaintiffs. 17. Consent to Qualified Assignment 1 I Plaintiffs acknowledge and agree that the Defendants and/or the Insurer may make a "qualified assignment" within the meaning of Section 130(c) of the Internal Revenue Code of 1986, as amended, of the Defendants' and/or the Insurer's liability to make the Periodic Payments set forth in Addendum No. 1 attached hereto (the "Periodic Payments") to The Travelers Life and Annuity Company ("the Assignee"). The Assignee's obligation for payment of the Periodic Payments shall be no greater than that of Defendants and/04 Insurer (whether by judgment orpreement) immediately preceding the assignment of the Periodic Payments obligation. Any such -assignment, if made, shall be accepted by the Plaintiffs without right of rejection and shall completely release and discharge the Defendants and the Insurer from the Periodic Payments obligation assigned to the Assignee. The Plaintiffs recognize that, in the event of such an assignment, the Assignee shall be the sole obligor with respect to the Periodic Payments obligation, and that all other releases with respect to the Periodic Payments obligation that pertain to the liability of the Defendants and the Insurer shall thereupon become final, irrevocable and absolute. 18. It is further understood and agreed by the undersigned that, with the exception of the $36,054.00 cash payable upon. approval of this Agreement as provided above, all future payments hereunder may, at the option of the Insurer, or its assignee, The Travelers Life and Annuity Company be funded by the purchase of an annuity from The Travelers Insurance Company. The Assignee will provide for payments as described more specifically in Addendum No. 1. 19. It is fully understood and agreed that this Release covers all claims asserted, it being the intent of the undersigned Releasing Party to fully extinguish every and all claims against anyone allegedly responsible for injuries or damages sustained as a direct or indirect result of the occurrences in 1999 and 2000. 20. Tax Consequences It is further understood among the parties that those parties receiving monies hereunder have not relied upon any representations, expressed or implied, made by the Defendants, the Insurer or their attorneys or representatives, as to the possible tax 9 AD • DENDUM NO. 1 Description, of Periodic Payments Payee: Logan Wooller GUARANTEED'LUMP SUM PAYMENTS $ 18,500 TO BE PAID ON SEPTEMBER 3, 2004 $ 30,000 TO BE PAID ON SEPTEMBER 3, 2011 $ 45,000 TO BE PAID ON SEPTEMBER 3, 2016 $160,000 TO BE PAID ON SEPTEMBER 3, 2036 BENEFICIARY: The Estate of Logan Wooller