HomeMy WebLinkAboutResolution - 2010-R0554 - Release Agreement Cause No. 08-01067-B Filed By ICON/AAG - 10/28/2010Resolution No. 2010—RO554
October 28, 2010
Item No. 6.12
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, a Compromise Settlement Agreement
,,6th ICON Benefit Administrators Il, L.P. and American Administrative Group, Inc, and
related documents. Said Compromise Settlement Agreement is attached hereto and
Sncorporated in this resolution as if fully set forth herein and shall be included in the
minutes of the City Council.
Passed by the City Council on October 28, 2010
ATTEST:
�ebe a Garza. City Secretary
APPROVED AS TO FORM AND CONTENT:
vw:ccdocs,'RES.Settlement Agreement -ICON AAG
.October 20, 2010
11
Cause No. CC -08-01067-B
ICON BENEFIT ADMINISTRATORS
II, L.P. and AMERICAN
ADMINISTRATIVE GROUP, INC.,
Plaintiffs,
V.
LEE ANN DUMBAULD, SCOTT
SNIDER, LEISA HUTCHESON,
AND DAVID MILLER,
Defendants.
IN THE COUNTY COURT
AT LAW NO.2
DALLAS COUNTY, TEXAS
MUTUAL RELEASE AND SETTLEMENT AGREEMENT
1. SETTLING PARTIES:
This Mutual Release and Settlement Agreement (hereinafter "Settlement Agreement") is
entered into on this day of October, 2010, by the following parties, their agents
and/or employees (hereinafter referred to as the "Settling Parties"):
1.1 ICON BENEFIT ADMINISTRATORS II, L.P., and AMERICAN
ADMINISTRATIVE GROUP, INC., their past, present and future predecessors
parents, affiliates, assigns, agents, servants, and representatives, including without
limitation HealthSmart Holding, Inc., HealthSmart Preferred Care II, LLC., and
HealthSmart Preferred Care II, LLP (hereinafter referred to collectively as the
'Plaintiffs");
1.2 TED PARKER, his heirs, agents, servants, and representatives as well as his
companies, their heirs, past, present, and future predecessors, parents, affiliates,
assigns, agents, servants, and representatives (hereinafter referred to as "TED
PARKER);
1.3 LEE ANN DUMBAULD, LEISA HUTCHESON, SCOTT SNIDER, and DAVID
MILLER, their heirs, agents, servants, and representatives (hereinafter referred to
as the "Defendants").
2. RECITALS:
2.1 Plaintiffs filed suit against Defendants in the County Court at Law No. 2, Dallas
County, Texas, Cause Number CC -08-01067-B (hereinafter the "Dallas County
litigation"), claiming damages arising out of certain alleged acts or omissions of
the Defendants including, but not limited to, civil conspiracy, tortious interference
with prospective contractual relations, business disparagement, and defamation.
At the time of this Settlement, the Second Amended Petition on file in the above
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court (which is incorporated herein for any and all purposes by reference and
hereinafter referred to as the "Petition"), sought on behalf of the Plaintiffs to
recover actual damages, special damages, pecuniary losses, exemplary damages,
attorney fees, and costs of court.
2.2 Defendants thereafter filed certain Counter -Claims against Plaintiffs claiming
damages arising out of certain alleged acts or omissions of the Defendants
including, but not limited to, intentional infliction of emotional distress, abuse of
process, malicious prosecution, and sanctions. At the time of this Settlement, the
Counter -Claims on file in the above court (each of which are incorporated herein
for any and all purposes by reference and hereinafter referred to as the "Counter -
Claims"), sought on behalf of the Defendants to recover actual damages,
exemplary damages, attorney fees, and costs of court.
2.3 On or about May 24, 2010, Plaintiffs filed a Motion for Non -Suit without
Prejudice. Plaintiffs' Motion was granted by Order of the Court on or about May
25, 2010 and Plaintiffs' claims against Defendants were dismissed without
prejudice.
2.4 The parties to this Settlement Agreement, seeking to avoid the uncertainties of a
trial, desire to enter into this Settlement Agreement in order to provide for certain
payments in full and final settlement and discharge of all claims or causes of
action which are, or could have been, the subject of the Petition or Counter -
Claims, under the terms and conditions as set forth herein.
3. AGREEMENT:
The parties set forth in Paragraph I herein agree as follows:
3.1 Release and Discharge:
A. In consideration of the payments called for herein and the
execution of this Settlement Agreement, the Plaintiffs, ICON BENEFIT
ADMINISTRATORS II, L.P., and AMERICAN ADMINISTRATIVE GROUP,
INC., TED PARKER, and each of their respective agents, servants and
representatives, hereby completely release and forever discharge the Defendants,
LEE ANN DUMBAULD, LEISA HUTCHESON, SCOTT SNIDER, and DAVID
MILLER, their respective heirs, agents, servants, representatives, of and from any
and all past, present and future claims, demands, obligations, actions, causes of
action, rights, damages, costs, losses, expenses and compensation of any nature
whatsoever, whether based in tort, contract or other theory of recovery, and for all
damages of whatsoever nature, which the Plaintiffs now have, or which may
hereafter accrue or otherwise be acquired, on account, or in any way arising out
of, or which are connected in any way to the subject of the Petition including,
without limitation, any and all known or unknown claims for damages to
Plaintiffs which have resulted or may result from the alleged acts or omissions set
forth in the Petition or which could have been set forth in the Petition.
UTrrTTAT. RF.T.FASF AND SErn FMENT AGREEMENT Page 2
B. In consideration of the payment called for herein and the execution
of this Settlement Agreement, the Defendants, LEE ANN DUMBAULD, LEISA
HUTCHESON, SCOTT SNIDER, and DAVID MILLER and each of their
respective heirs, agents, servants and representatives, hereby completely release
and forever discharge the Plaintiffs, ICON BENEFIT ADMINISTRATORS II,
L.P., and AMERICAN ADMINISTRATIVE GROUP, INC., their respective
agents, servants, and representatives, and TED PARKER, and, of and from any
and all past, present and future claims, demands, obligations, actions, causes of
action, rights, damages, costs, losses, expenses and compensation of any nature
whatsoever, whether based in tort, contract or other theory of recovery, and for all
damages of whatsoever nature, which the Defendants now have, or which may
hereafter accrue or otherwise be acquired, on account, or in any way arising out
of, or which are connected in any way to the subject of the Counter -Claims
including, without limitation, any and all known or unknown claims for damages
to Defendants which have resulted or may result from the alleged acts or
omissions set forth in the Counter -Claims or which could have been set forth in
the Counter -Claims.
C. The Settling Parties hereby acknowledge and agree that this release
is a general release, and they further expressly waive and assume the risk of any
and all claims for damages which exist as of this date, but of which they do not
know or suspect to exist, whether through ignorance, oversight, error, negligence
or otherwise, and which, if known, would materially affect their respective
decisions to enter into this Settlement Agreement. The Settling Parties further
agree that they have accepted payment of the amount specified herein as a
complete compromise of matters involving disputed issues of law and fact, and
they assume the risk that the facts or law may be otherwise than they believe. The
Settling Parties further acknowledge that, by accepting the terms of this
Settlement Agreement, they waive their right to a trial by jury of all matters which
they have or could have alleged, arising from the matters in question.
D. It is the intention of the Settling Parties that this Release be as
general as possible, and that the same shall cover every conceivable contingency
that might arise in the future or which may have arisen in the past, whether known
or unknown. It is further understood and agreed that this is a full and final release
and discharge of each Settling Party, and that Settling Party's agents, servants,
and representatives that are not expressly named herein, from any matter or thing
dealt with herein and that the same may be pleaded as an absolute bar to any and
all suit or suits pending, or which may hereinafter be pending or prosecuted, by
any such Settling Party or by anyone claiming by, through or under such Settling
Party.
3.2 Cash Payments:
A. Plaintiffs hereby agree to pay the sum of $850,000.00 to the City
of Lubbock, Texas.
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B. It is expressly understood and agreed that the sum referenced
above is being paid in satisfaction of the City of Lubbock's subrogation claim for
the attorneys' fees and costs incurred by the City of Lubbock in defending the
claims asserted by the Plaintiffs against the Defendants.
C. It is further expressly understood and agreed that the payment of
$850,000.00 to the City of Lubbock, Texas is the only payment Plaintiffs will
make in settlement of this matter and that the Defendants or each of their
respective heirs, agents, servants and representatives will not receive or be
entitled to receive, either actually or constructively, any portion of those
settlement funds.
D. It is further agreed that the Settling Parties shall file a fully
executed Settlement Agreement with the Court, obtain and file an Order of
Dismissal with Prejudice, and that the Plaintiffs shall make payment of the sum
due herein of $850,000 on or before November 30, 2010.
E. All parties acknowledge the covenants herein represent the sole
valuable and sufficient consideration for this Agreement.
3.3 Good Faith Settlement:
The parties to this Settlement Agreement mutually agree by and through their
attorneys and represent that the Settlement Agreement set forth herein was
entered into in good faith and to the satisfaction of the Settling Parties.
3.4 Entire Agreement and Successors in Interest:
This Settlement Agreement contains the entire agreement between the Settling
Parties with regard to the matters set forth in it and may not be modified or
amended except in a writing signed by the Settling Parties or their successors in
interest. This Settlement Agreement supersedes all prior agreements, promises or
representations, written or oral, express or implied. This Settlement Agreement
shall be binding upon and inure to the benefit of the executors, administrators,
personal representatives, heirs, successors and assigns of each.
3.5 Representation of Comprehension of Document:
In entering into this Settlement Agreement, the parties hereto represent that they
are not acting under duress, but instead have relied upon the legal advice of their
attorneys, who are the attorneys of their own choice and that the terms of the
Settlement Agreement have been explained to them by their attorneys, and that
those terms are fully understood and voluntarily accepted by them.
3.6 Governing Law:
This Settlement Agreement shall be construed and interpreted in accordance with
the laws of the State of Texas and sole venue and jurisdiction over the
enforcement of the agreement shall be in Lubbock County, Texas.
3.7 Disposition of Litigation/Additional Documents:
The parties agree that the above referenced litigation shall be disposed of through
entry of an agreed Order of Dismissal with Prejudice. All parties hereto agree to
cooperate fully and promptly execute any and all supplementary documents,
including but not limited to the Order of Dismissal with Prejudice, and to take all
additional action which may be necessary or appropriate to give full force and
effect to the basic terms and intent of this Settlement Agreement.
3.8 Non -Disparagement:
Each Settling Party agrees not to make any statement or comment about the other
Settling Parties that is defamatory or false with respect to the Dallas County
litigation, the allegations therein, and/or the issues involved in this Settlement
Agreement. This provision does not prohibit statements by the Settling Parties to
the effect that they, individually or collectively, did nothing wrong with respect to
the Dallas County litigation, the allegations therein, and/or the issues involved in
this Settlement Agreement.
Notwithstanding the foregoing provisions of this paragraph, it shall not be a
violation of this paragraph for any Settling Party to make statements when
required by order of a court or in response to a validly -issued subpoena, providing
sworn testimony, or in response to an official investigation.
3.9 Other Provisions:
A. The Plaintiffs have prepared the press release attached hereto as
Exhibit A and agree to distribute such press release to the Lubbock Avalanche
Journal, KJTV, KAMC, KCBD, and KLBK within twenty-four (24) hours of final
execution of this Settlement Agreement. With regard to that press release or other
public statement, the parties expressly agree that a material term of this agreement
shall be full compliance with the terms of Paragraph 3.8 of this agreement.
B. The Settling Parties acknowledge that this Settlement Agreement is
not an admission of any liability on the part of any other Settling Party. This
Settlement Agreement shall not be admissible in any forum except in an action to
enforce it, and shall not be admissible in any forum in any circumstances as an
admission.
C. The
Settling
Parties
understand that there are other, pending
disputes involving,
among
others,
the Plaintiffs and the City of Lubbock
including, but not
limited
to; a)
AAA No. 71-193-00084-08, Icon Benefit
.VT•i-w-W •ATT0WT WXXTCATV At-nVV7I4VMM PAOPK
Administrators II, L.P., American Administrative Group, Inc., HealthSmart
Preferred Care II, L.P., and The Parker Group, Inc. v. City of Lubbock, Texas
(hereinafter the "Arbitration"); and, b) Civil Action No. 5:08 -CV -016-J pending
in the United States District Court for the Northern Division of Texas, Lubbock
Division, City of Lubbock, Texas v. Covenant Health System v. HealthSmart
Preferred Care II, L.P. (hereinafter the "Covenant suit").
D. The Settling Parties expressly understand and agree that this
Settlement Agreement does NOT release, discharge, alter, or modify any of the
claims or disputes, of either law or fact, in either the Arbitration or the Covenant
suit regardless of whether such claims or disputes are currently pending or
hereafter accrue or are asserted. It is the intention of the Settling Parties that this
Settlement Agreement not release, discharge, alter, or modify any claims,
defenses, causes of action, or disputes that may now or hereafter exist by and
between, without limitation, the Plaintiffs and the City of Lubbock.
This Settlement Agreement is in no way intended to, nor does it, in any
way, waive or otherwise alter the City of Lubbock's position regarding the audit
to be performed in the Arbitration, the methodology to be used in performing any
such audit, or the City's position that the audit conducted by Sally Reaves and
Sagebrush Solutions, as part of the Dallas County litigation, should be utilized in
the Arbitration. Similarly, this Settlement Agreement does not waive or
otherwise alter the Plaintiffs position regarding the audit to be performed in the
Arbitration, the methodology to be used in performing any such audit, or the
Plaintiffs' position that the audit conducted by Sally Reaves and Sagebrush
Solutions, as part of the Dallas County litigation, should not be utilized in the
Arbitration.
E. The Settling Parties further warrant and represent that, in entering
into this Settlement Agreement, they have fully read this agreement and have not
relied upon any statement, representation or promise made by any of the parties
released hereby but rather have relied solely upon their own judgment and the
advice of their attorney.
F. The provisions of this Settlement Agreement are severable. If one
or more provisions are determined to be invalid, illegal, or otherwise
unenforceable, in whole or in part, the remaining provisions, and any partially
enforceable provisions, shall be binding and enforceable.
G. The Plaintiffs hereby promise, covenant and agree that they will
not bring suit against the Defendants with respect to any alleged act or omission
set forth in the Petition or which could have been set forth in the Petition
including, but not limited to, any claim of misconduct, misfeasance, or other such
claim arising out of the provision of third party administrator or preferred provider
services to the City of Lubbock.
H. This Settlement Agreement may be executed in multiple
counterparts; each, when taken together, shall constitute but one agreement.
10/27/2010 21:17 972-724-4019 FEDEX OFFICE 0981 PAGE 02
t. Each Settling Part, represents and warrants that it has full power
and authority to =cute this Agreemetrt Each of the undersigned represents that
he of she is dully withorized to eater into and execute this Settlement Agreement
:For and on beballf of the entity that he or she represents and that sach entity has
duly authorized him or her to sign on its behalf, as reflected oa the attached
signature pages.
J. Each Settling Party represents and warrar& that it has not
transftred or othomiise assigned, by operation of law or otherwise, any claim that
is to be released by such Boating FUrty pursuant to this Settlement Agreement
E�MCUTHD on the 2P day of Octobei, 2010.
ICt N BENEFIT ADM MSTRATORS II, L.P.
By:
es
Its: , General
AIVIHRICAN ADMINISTRATIVE GROUP, INC.
TED PAR Si
LEE ANN DUMBAUGD, Defendant
ECELSA IIUTCHESON, Defendant
FC17M SN7DBR, Defendant
I. Each Settling Party represents and warrants that it has full power
and authority to execute this Agreement. Each of the undersigned represents that
he or she is fully authorized to enter into and execute this Settlement Agreement
for and on behalf of the entity that he or she represents and that such entity has
duly authorized him or her to sign on its behalf, as reflected on the attached
signature pages.
J. Each Settling Party represents and warrants that it has not
transferred or otherwise assigned, by operation of law or otherwise, any claim that
is to be released by such Settling Party pursuant to this Settlement Agreement.
EXECUTED on the day of , 2010.
ICON BENEFIT ADMINISTRATORS II, L.P.
By:
�uf�revwleyr'�avne s e 1 y
Its:
AMERICAN ADMINIS2A E GROUP, INC.
By' 41Z- Ca"sd
Its:
TED PARKER
LEE ANN DUMBAUT D, Defendant
LEISA HUTCHESON, Defendant
SCOTT SNIDER, Defendant
MUTUAL RELEASE AND SETTLEMENT AGREEMENT Page 7
I. Each Settling Party represents and warrants that it has full power
and authority to execute this Agreement. Each of the undersigned represents that
he or she is fully authorized to enter into and execute this Settlement Agreement
for and on behalf of the entity that he or she represents and that such entity has
duly authorized him or her to sign on its behalf, as reflected on the attached
signature pages.
J. Each Settling Party represents and warrants that it has not
transferred or otherwise assigned, by operation of law or otherwise, any claim that
is to be released by such Settling Party pursuant to this Settlement Agreement.
EXECUTED on the day of , 2010.
ICON BENEFIT ADMINISTRATORS II, L.P.
James D. Kelly
Its: General Counsel
AMERICAN ADMINISTRATIVE GROUP, INC.
By:
James D. Kelly
Its: General Counsel
TED PARKER
"XW
LEE NN DUMBAULD, Defendant
LEISA HUTCHESON,
MUTUAL RELEASE AND SETTLEMENT AGREEMENT Page 7
DAVID MILLER, Defendant
THE CITY OF LUBBOCK
Tom Martin, Mayor
APPROVED AS TO FORM:
Mr. Gabriel Aizenberg
Mr. Scott Mendeloff
321 North Clark Street, Suite 3400
Chicago, IL 60610-2402
Attorneys for Pl t s
Michael L. Byrd — �I
Byrd & Associates
7816 Orlando Ave
P. O. Box 65163
Lubbock, TX 79464
Attorney for Defendants, Leisa Hutcheson, Scott Snider,
and David Miller
rp 2 �\ -
U, ; kf"
Chris D. Parker L'
Thomas D. Farris
Peterson, Farris, Pruitt & Parker
P. O. Box 9620
Amarillo, TX 79105
Attorney for Defendant, Lee Ann Dumbauld
Sam Medina, City Attordey for the
City of Lubbock
DAVID MILLER, Defendant
THE CITY OF LUBBOCK
0
APPROVED AS TO FORM:
NVScott Mendeloff
321 North Clark Street, Suite 3400
Chicago, IL 60610-2402
Attorney for Plaintiffs
Tom Martin, Mayor
Michael L. Byrd
Byrd & Associates
7816 Orlando Ave
P. 0. Box 65163
Lubbock, TX 79464
Attorney for Defendants, Leisa Hutcheson, Scott Snider,
and David Miller
Chris D. Parker
Thomas D. Farris
Peterson, Farris, Pruitt & Parker
P. 0. Box 9620
Amarillo, TX 79105
Attorney for Defendant, Lee Ann Dumbauld
Sam Medina, City Attorney for the
City of Lubbock
MUTUAL RELEASE AND SETTLEMENT AGREEMENT Page 8
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared ,lames D. Kelly, General Counsel of ICON BENEFIT
ADMINISTRATORS 11, L.P, and AMERICAN ADMINISTRATIVE GROUP, INC., known to
me to be the person whose name is subscribed above, and after being by me duly sworn did,
under oath, depose and say that he has read the entire Mutual Release and Settlement Agreement
above and fully understands the same, and that the statements contained therein are true and
correct, and that he has signed the same freely and voluntarily, relying only on the settlements
contained therein and none other.
�� �1'VEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
2010.
z'' �nrcaTa �a�r�s
r« Y
THE STATE OF TEXAS §
COUNTY OF
No ryIPublic, Sta f Texas
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared TED PARKER, known to me to be the person whose
name is subscribed above, and after being by me duly sworn did, under oath, depose and say that
he has read the entire Mutual Release and Settlement Agreement above and fully understands the
same, and that the statements contained therein are true and correct, and that lie has signed the
same freely and voluntarily, relying only on the settlements contained therein and none other.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day. of
2010.
Notary Public, State of Texas
ai trITAL RELKAM Arco Sin-Tt.P M ENT AGRRKM EW Mage 9
THE STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned authority, a Notar Public in and for said County and
State, on this day personally appeared . V.&AY, of
ICON BENEFIT ADMINISTRATORS IT, L.P, and AMERICAN .ADMINISTR.A= GROUP,
INC., known to me to be the person whose name is subscribed above, and after being by me duly
sworn did, under oath, depose and say that he has read the entire Mutual Release and Settlement
Agreement above and fully understands the same, and that the statements contained therein are
true and correct, and that he has signed the same freely and voluntarily, relying only on the
settlements contained therein and none other.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
.2010.
Notary Public, State of Texas
THE STATE OF TEXAS
COUNTY OF D2 j,jaA
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared TED PARKER, known to me to be the person whose
name is subscribed above, and after being by me duly sworn did, under oath, depose and say that
he has read the entire Mutual Release and Settlement Agreement above and fully understands the
same, and that the statements contained therein are true and correct, and that he has signed the
same freely and voluntarily, relying only on the settlements contained therein and none other.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
OCA:0(:ffX" , 2010. r n
ERIN ELIZABETH BRONG
Notary Public, State of Texas
T`r= My commlasion Expires
Bali�� Aprli 15, 2014
a
MUTUAL RELEASE AND SETTLEMENT AGREEMENT Page 9
THE STATE OF TEXAS §
COUNTY OF LU bOOCL
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared LEE ANN DUMBAULD, known to me to be the person
whose name is subscribed above, and after being by me duly sworn did, under oath, depose and
say that she has read the entire Mutual Release and Settlement Agreement above and fully
understands the same, and that the statements contained therein are true and correct, and that she
has signed the same freely and voluntarily, relying only on the settlements contained therein and
none other.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the a?/Ih day of
r , 2010.
CYNTHIA ANN BENEDICT
Notary Public, State of Texas
(@My Commission Expires March 3, 20 Q
THE STATE OF TEXAS
COUNTY OF 1 4 b0i)
61A K(( NO 31awxa-
Notary Public, State of Texas
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared LEISA HUTCHESON, known to me to be the person
whose name is subscribed above, and after being by me duly sworn did, under oath, depose and
say that she has read the entire Mutual Release and Settlement Agreement above and fully
understands the same, and that the statements contained therein are true and correct, and that she
has signed the same freely and voluntarily, relying only on the settlements contained therein and
none other.
f�IVEN UNDER MY HAND AND SEAL OF OFFICE, this the h day of
V%lamr , 2010.
_ CYNTHIA ANN BENEDICT
®4 Notary Public, State of Texas
My Commission Expires March 3, 20 I_Z
�Jwo ilici Qnn &'Viftar
N— otat*r'y Public, State of Texas
THE STATE OF TEXAS
COUNTY OF WOL §
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared SCOTT SNIDER, known to me to be the person whose
name is subscribed above, and after being by me duly sworn did, under oath, depose and say that
he has read the entire Mutual Release and Settlement Agreement above and fully understands the
same, and that the statements contained therein are true and correct, and that he has signed the
same freely and voluntarily, relying only on the settlements contained therein and none other.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the � day of
C+ob-eT , 2010.
CYNTHIA ANN BENEDICT
Notary Public, State of Texas
" 1 My Commission Expires March 3, 20LI
THE STATE OF TEXAS §
COUNTY OF §
,gym 1&-6 0)An t ea
Notary Public, State of Texas
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared DAVID MILLER, known to me to be the person whose
name is subscribed above, and after being by me duly sworn did, under oath, depose and say that
he has read the entire Mutual Release and Settlement Agreement above and fully understands the
same, and that the statements contained therein are true and correct, and that he has signed the
same freely and voluntarily, relying only on the settlements contained therein and none other.
AN UNDER MY HAND AND SEAL OF OFFICE, this the day of
b -e r , 2010.
CYNTHIA ANN BENEDICT
OT Notary Public, State of Texas
.' My Commission Expires March 3, 20 j -
f wlkilc Onn
Notary Public, State of Texas
AXT79rT1AT AFT T?ACTi ANTI CV7-n.V..MF.N'T AGURR.MRNT Pate 11
THE STATE OF TEXAS
COUNTY OF LUBBOCK §
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared Tom Martin, Mayor of the City of Lubbock, known to me
to be the person and officer whose name is subscribed to the foregoing instrument, and
acknowledged to me that the same was the act of said City of Lubbock and that he executed the
same as the act of the City of Lubbock for the purposes and consideration therein expressed and
in the capacity therein stated.
Mt�
UNDER MY HAND AND SEAL OF OFFICE, this the �g day of
j , 2010.
Notary Public, State of Texas
Lc-'C'
SL _ _cIV„ L. MORENONotary ublic, State of Texas^4, My Commission Expires
April 201 t
........r•r •1171 T•- ♦ITT C•T7T WhXWXVr wnT3T?WR41VXT Pon. 17
RELEASE OF SUBROGATION CLAIM
For and in consideration of payment to the City of Lubbock of the sum of Eight
Hundred Fifty Thousand and no/100 ($ 850,000.00) dollars, for its subrogation claim
arising out of its defense of Lee Ann Dumbauld, Scott Snider, Leisa Hutcheson, and
David Miller in cause No. CC -08001067-13, styled Icon Benefit Administrators II, L.P.
and American Administrative Group, Inc., Plaintiffs vs. Lee Ann Dumbauld, Scott
Snider, Leisa Hutcheson, and David Miller, in the County Court at Law, No. 2, Dallas
County, Texas and for the execution of a Mutual Release and Settlement Agreement
dated the �hday of —D& 2010, the City of Lubbock does hereby release Icon Benefit
Administrators II, L.P., and American Administrative Croup, Inc, their past, present and
future predecessors, parents, affiliates, assigns, agents, servants, and representatives,
including without limitation HealthSmart Holdings, Inc., HealthSmart Preferred Care II,
LLC., HealthSmart Preferred Care II, LLP, from all liability for attorneys' fees and
expenses incurred by the City of Lubbock in defense of Lee Ann Dumbauld, Scott
Snider, Leisa Hutcheson, and David Miller in the above referenced matter.
This release is not intended to release and does NOT release, discharge, alter, or
modify any of the claims, defenses, or disputes by and between the City of Lubbock and
those released hereby.
The sole purpose and intent of this release is to release the subrogation claim
referenced above.
City of Lubbock
By:
Its Mayor
ATTEST:
-P AA'r-"�
Rebecca Garza, City Secretary
APPROVED AS TO FORM AND CONTENT:
Sam Medina, City AGry&y
EXHIBIT A - PRESS RELEASE
Regarding the settlement of the suit against City employees Lee Ann Dumbauld, Leisa
Hutcheson, Scott Snider, and former Mayor David Miller, HealthSmart said, "We regret
that former management filed this suit. We believe that all disputes between our
companies and the City of Lubbock should have been and should be resolved in the
context of the arbitration in Lubbock. We steadfastly maintain that we did nothing
wrong in relation to the Lubbock arbitration issues." Ted Parker is no longer involved in
the day-to-day management of the company.
As for comment on the settlement, Dumbauld, Hutcheson, Snider and Miller each said,
"We are thankful the City continued to defend us as we have maintained throughout this
ordeal we did nothing wrong." The City will receive the benefit of the recovery to defray
the costs of the lawsuit. The City employees, former Mayor, and HealthSmart all
expressed that they are pleased an audit can now be completed.
i
bock
}Lub
TEXAS
Agenda Item 6.12
Resolution - Health Benefits & Risk Management: Consider and take action
on a proposed Settlement, Compromise, and Release Agreement arising out of
Cause No. 08-01067-B filed by ICON/AAG in the County Court at Law No. 2
sitting in Dallas, Dallas County, Texas, and in which Lee Ann Dumbauld, Scott
Snider, Leisa Hutcheson, and David Miller filed Counterclaims.
Item Summary
This is a Settlement, Compromise, and Release Agreement (the Agreement)
made between the City of Lubbock (the City), Lee Ann Dumbauld, Scott Snider,
Leisa Hutcheson, and David Miller and ICON/AAG arising out of Cause No.
08-01067-B filed on February 8, 2008, in the County Court at Law No. 2 sitting
in Dallas, Dallas County, Texas. The City provided a defense for these four
individuals. On May 25, 2010, all claims asserted by ICON/AAG against Lee
Ann Dumbauld, Scott Snider, Leisa Hutcheson, and David Miller were dismissed
by ICON/AAG, leaving only the Counterclaims filed by Lee Ann Dumbauld,
Scott Snider, Leisa Hutcheson, and David Miller against ICON/AAG still
pending.
This resolves the dispute in Cause No. 08-01067-13.
Fiscal Impact
The City will receive $850,000.
StaffBoard Recommending
Sam Medina, City Attorney
City Council Meeting
Thursday, October 28, 2010
Linda Hart - Emailing: City SA&R �._.
From: Gabbi Olguin <GOlguin@byrdfirm.com>
To: LHart@mail.ci.lubbock.tx.us
Date: 5/13/2011 9:22 AM
Subject: Emailing: City SA&R
Linda,
Here is the document we discussed. It has not been filed with the Court, which doesn't make a difference
one way or the other as it serves no additional purpose to have it filed. Everyone has signed off on the
document. Let me know if you need anything else.
Thanks and have a good weekend,
Gabrielle Olguin
-Assistant to Michael L. Byrd
Byrd & Associates
P.O. Box 65163
Lubbock, Texas 79464
(806) 788-0181
(806) 788-0187 - Fax
CONFIDENTIALITY NOTICE: This e-mail and attachments may contain privileged or confidential
information. If this e-mail is not addressed to you, promptly notify the sender and delete the message.
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The message is ready to be sent with the following file or link attachments:
City SA&R
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Linda Hart - Re: Icon
From: Sylvia Juarez
To: Linda Hart
Date: 1/19/2011 9:59 AM
Subject: Re: Icon
You are welcomed to call them. Their number is 788-0181 and Gabbi is the legal assistant to Mike Byrd. I have called and
emailed Gabbi, but do not have an answer or documents. I had just emailed her prior to receiving your email and asked her
again.
Sylvia Juarez
Executive Assistant to City Attorney
1625 13th Street, Suite 205
P.O. 2000
Lubbock, Texas 79457
(806)775-2217
(806) 775-3307
sivarez@mylubbock.us
>>> Linda Hart 1/19/20119:18 AM >>>
Sylvia:
Checking on the status of obtaining the original signature settlement agreement from the 'but -sourced" law office.
We really need to finalize this document since it passed Council October 28, 2010.
If you would like, I could call the law office.
thanks
>>> Sylvia Juarez 12/30/2010 4:09 PM >>>
Gabby -
Just following up on the Settlement Agreement with 'original signatures" - any word yet?
Sylvia Juarez
Executive Assistant to City Attorney
1625 13th Street, Suite 205
P.O. 2000
Lubbock, Texas 79457
(806)775-2217
(806) 775-3307
sivarez@mylubbock.us
file://C:\Documents and Settings\17273\Local Settings\Temp\GW)00001.HTM 1/19/2011
( (1/19/2011) Sylvia Juarez - Emailing: city sar Page 1
From: Gabbi Olguin <GOlguin@byrdfirm.com>
To: "Sylvia Juarez (sjuarez@mylubbock.us)" <sjuarez@mylubbock.us>
Date: 1/19/2011 1:50 PM
Subject: Emailing: city sar
Attachments: city sar.pdf
Sylvia,
Here is a copy of what we have. 1 will keep trying to get a complete copy.
Thanks!
Gabbi
The message is ready to be sent with the following file or link attachments:
city sar
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