HomeMy WebLinkAboutDocumentation_Regular_Tab 05_1/9/2020Agenda Item #5.
Regular Council
STAFF MEMO
Meeting: Regular Council - Jan 09 2020 - AMENDED AGENDA
Staff Contact: Merlene Reid, Director, HR & Risk Department: HR
Management
Approve Settlement Agreement with Ex -Employee Carroll Rudolph Smith
SUMMARY:
Utilities Director Carroll "Rudy" Smith was hired on February 6, 2018 and terminated on
June 26, 2018, four months later for failure to make probation. Mr. Smith also submitted a resignation
letter on June 26, 2018 and later that same day requested its withdrawal. His subsequent lawsuit
contends that the Village breached its agreement of an initial one-year contract, terminating him
without cause after he raised issues in March 2018 regarding the Village's consulting engineering
firm, and this angered then Village Manager Michael Couzzo.
In a mediation hearing held on December 16, 2019, both parties agreed that it was in their interest to
avoid incurring further litigation costs. Consequently Mr. Smith and the Village reached a full
settlement for a total of $65,000, which includes Mr. Smith's attorney's costs. Additionally, the
settlement requires the Village to withdraw its termination letter and accept Mr. Smith's resignation
letter of June 26, 22018.
Council is being asked to approve the settlement agreement, a copy of which is attached.
Teguesta - Smith - Settlement Release and Non -Disclosure Agreement.ada (final)
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Agenda Item #5.
Settlement, Release and Non -Disclosure
Agreement
This settlement, release and non -disclosure agreement (hereinafter referred to as the
"Agreement") is made and entered into by and between Carroll Rudolph Smith
(hereinafter "Plaintiff"), and RIG LQR,AD-&�the Village of Tequesta (hereinafter
"Defendant").
Wit-Inesseth:
Whereas, Plaintiff filed a civil action in the Circuit Court of the 15t" Judicial Circuit in and
for Palm Beach County, Florida, styled as Carroll Rudolph Smith v. Village of Tequesta,
Case No. 20-2019-CA-008098XXXXMBAJ (hereinafter referred to as the "civil action");
Whereas, Defendant denies Plaintiff's claims;
Whereas, Plaintiff and Defendant desire to avoid incurring further costs of litigation, and
seek to resolve all matters in controversy, disputes, and causes of action between them
in an amicable fashion;
Whereas, Plaintiff and Defendant have reached a full and final compromise and
settlement of all matters, causes of action, claims and contentions between them; and
Whereas, Plaintiff acknowledges that any payment received pursuant to this Agreement
constitutes consideration which he would not otherwise be entitled to receive from
Defendant.
Now therefore, in consideration of the mutual covenants and promises herein contained
and other good and valuable consideration, the sufficiency of which is hereby
acknowledged, and to avoid unnecessary litigation, it is hereby agreed by and between
the parties as follows:
This Agreement, and compliance with this Agreement, shall not be construed as
an admission by Defendant of any liability whatsoever, or as an admission by
Defendant of any violation of the rights of Plaintiff or any other person, or of any
violation of any order, law, statute, rule, regulation, duty, or contract, and any
alleged violation of any rights of Plaintiff or any other person, or of any order, law,
statute, rule, regulation, duty or contract.
2. In full settlement of all claims including attorney's fees and costs, Defendant
agrees to pay Plaintiff the total sum of Sixty -Five Thousand Dollars ($65,000.00)
as follows:
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Agenda Item #5.
{a)a. a check in the amount of Dollars
($ ,000.00) will be made payable to Plaintiff, Caroll Rudolph Smith. This
sum is allocated as payment made in settlement of Plaintiff's claims in the civil
action for alleged. From the aforementioned sum,
Dollars
($ 1000.00) is allocated for Plaintiff's claims for breach of contract for
which a W-2 will issue, and
check in the amount of Dollars
($—,000.00) will be made payable to the Garcia Law Firm, Tax ID 20-
1519391. This sum is allocated as payment made in settlement of Plaintiffs
claims for attorney's fees and costs in the civil action for which a 1099 will issue.
Defendant makes no representations or warranties, express or implied, concerning
tax implications of any payments made pursuant to this Agreement. Any tax obligation
of Plaintiff arising from the foregoing payments will be Plaintiff's sole responsibility.
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Agenda Item #5.
Plaintiff agrees to indemnify and to hold Defendant harmless for any tax liability,
penalties, fees or costs imposed upon or assessed against him or Defendant by any
taxing authority arising from such payments. It is expressly agreed that if Defendant is
required to provide payments for taxes or interest or penalties to any taxing authority,
Plaintiff shall promptly reimburse Defendant for such payments. Plaintiff agrees that all
the payments referenced above constitute separate consideration to which Plaintiff is
not otherwise entitled and are in full and complete settlement of Plaintiff's claims.
3. Defendant agrees to withdraw its termination of Plaintiff and accept Plaintiff's
resignation effective June 26, 2018. Plaintiff's resignation letter will be
maintained in his personnel file.
4. Plaintiff agrees that he shall take all necessary steps to dismiss his civil action
with prejudice, including by executing, filing and serving a Stipulation of
Dismissal with Prejudice with the Court within five (5) days of execution of this
Agreement. Thereafter, after execution and filing of the aforementioned
stipulation of dismissal with prejudice and after expiration of the seven (7) day
revocation period set forth in Paragraph 7(c), below, Defendant shall forward the
payments in Paragraph 2, above, to counsel for Plaintiff within twenty-one days
after the expiration of the revocation period. The parties agree that it is the
responsibility of Plaintiff's counsel to remit and disburse all sums owed to Plaintiff
under the terms of this Agreement.
5. It is expressly understood by Plaintiff and his attorney that the obligations of
Defendant contained in paragraph 2 of this Agreement shall be in lieu of
anything, including any and all amounts to which Plaintiff, his heirs and assigns,
or his attorney are now, or may become, entitled to, based upon any claim
whatsoever arising out of his employment with Defendant or otherwise (including
special, general or exemplary damages, attorney's fees, interest, expenses, and
costs actually incurred).
6. Plaintiff specifically agrees that if he is asked about the civil action, he may only
respond that the "matter was amicably resolved," or that the "matter has been
settled to the parties' mutual satisfaction," or other words to that effect. The
Plaintiff acknowledges and agrees that under this paragraph he is specifically
prohibited from initiating any communication, verbally or in writing, with any
person, business, organization, corporation, association or governmental agency
regarding the civil action.
7. Plaintiff hereby unconditionally and irrevocably releases and forever discharges
Defendant in his official and individual capacities, and all of Defendant's,
employees, officers, attorneys or agents in their official and individual capacities,
both past and present, of and from, and agrees not to sue and not to assert
against them any causes of action, claims and demands whatsoever, known or
unknown, at law, in equity, or before any court, agency or commission of local,
state and federal governments, arising, alleged to have arisen, or which might
C1
Page 82 of 686
Agenda Item #5.
have been alleged to have arisen, or which may arise under the U.S. Constitution
or the Florida Constitution or any law including, but not limited to federal, state, or
municipal anti -discrimination laws, anti -harassment and anti -retaliation laws,
including, but not limited to, the Florida Whistle -blower's Act, Section 112.3187,
Florida Statutes, the Americans With Disabilities Act, the Family and Medical
Leave Act, the Florida Civil Rights Act, Title VII of the Civil Rights Act of 1964, as
amended in 1972 and 1991, Section 440.205, Florida Statutes, that Plaintiff on
behalf of herself and on behalf of persons similarly situated, ever had, now has,
or which her heirs, executors, administrators, or assigns, or any of them,
hereafter can, shall or may have for, or by reason of, any cause whatsoever, to
the effective date of this Agreement.
8. Plaintiff acknowledges that he:
{a4g,. has been given at least twenty-one (21) full days within which to consider
this Agreement;
{ . is advised that he has the right and may consult with an attorney prior to
executing this Agreement and acknowledges the opportunity to consult an
attorney;
{G)c. has seven (7) days following the execution of this Agreement to revoke
the Agreement, and the Agreement will not become effective or enforceable until
after this seven (7) day period has expired. To revoke this Agreement Plaintiff
must advise the Defendant in writing of the election to revoke it within the seven
(7) day period. Such written notice must be addressed and delivered to: Suhaill
M. Morales, Esquire, Allen, Norton & Blue, P.A., 121 Majorca Avenue, Suite 300,
Coral Gables, Florida 33134;
04- . is specifically releasing, among other claims, any claims under the Age
Discrimination in Employment Act of 1967 and all amendments thereto, and
{e3e. is not waiving rights or claims that may arise after the date this Agreement
is executed.
9. The parties represent and agree that they have thoroughly discussed all aspects
of this Agreement with their respective attorneys and have carefully read and
fully understand all of the provisions of this Agreement, and that they are
voluntarily entering into this Agreement.
10. The parties hereto represent and acknowledge that in executing this Agreement,
they do not rely and have not relied on any representation or statement made by
any of the parties or by any of the parties' agents, representatives, or attorneys
with regard to the subject matter, basis, or effect of this Agreement or otherwise
other than those specifically stated in this written Agreement.
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Agenda Item #5.
11.Any breach of any term, provision, or obligation of this Agreement by any party
shall entitle the other to seek enforcement of such term, provision or obligation in
a court of law of competent jurisdiction, and shall entitle the prevailing party to an
award of the reasonable attorney's fees and costs incurred in such proceeding.
The proper and only venue for any action, based upon any alleged breach of any
term, provision or obligation of this Agreement, shall be in the 15th Judicial
Circuit in and for Palm Beach County, Florida.
12. This Agreement constitutes the final and binding Agreement among the parties
and may not be supplemented or changed without the express written consent of
both parties. All prior representations regarding this Agreement are hereby
expressly disclaimed by both parties.
13. Should any provision of this Agreement be declared or determined by any Court
to be illegal or invalid, the validity of the remaining parts, terms or provisions shall
not be affected thereby and said illegal or invalid part, term or provision shall be
deemed not to be part of this Agreement.
f=° The parties to this Agreement may execute their signatures in counterpart,
each document of which may be considered as an original when executed. A
facsimile signature shall be deemed to be an original.
Remainder of the page was left blank intentionally
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Agenda Item #5.
Signatures:
arroll Rudolph Smith
Date
On behalf of the Village of Teguesta
(Print name)
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