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Tadros & Elaine Tadros / Settlement Agreement 16SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release (hereinafter the "Agreement") is entered by and between the CITY OF LA QUINTA, a California municipal corporation ("City") and TADROS TADROS and ELAINE TADROS (collectively, "Property Owners"), and is binding and effective as of the Effective Date (defined below). The City and Property Owners are referred to jointly hereinafter individually as a "Party" and collectively as the "Parties." The Parties enter into this Agreement with reference to the following: RECITALS A. The Property Owners own residential real property located at 78-170 Calle Cadiz, La Quinta, CA 92253 (the "Property"). B. On or about September 17, 2014, the Property Owners filed a claim with the City for flooding on their Property, CW File No. 1893996 (the "Claim"). The Property Owners claim that the City was responsible for the flooding of the Property. The City denied the Claim. C. By this Agreement, the City and Property Owners intend and desire to avoid the expense and uncertainty of any litigation relating to the drainage of water on the Property's driveway and to settle the Claim and any other claims arising from the past or potential future flooding of the Property, as more specifically set forth herein. AGREEMENT NOW THEREFORE, in consideration of the Recitals above, which are a substantive part of this Agreement and incorporated by this reference, and the mutual covenants set forth herein, the Parties agree as follows: 1. Obligation of the City. Settlement Payment. Within seven (7) business days after execution of agreement, City shall pay a total of $49,100.00 ("Settlement Amount") to Property Owners by a check made payable to " Tadros and Elaine Tadros " and available for pick up at City by Tadros Tadros or Elaine Tadros. This sum constitutes payment in full for any and all claims by the Property Owners arising out of the flooding of the Property, the condition of the drainage in the vicinity of the Property which they alleged caused or contributed to the flooding, and the condition and operation of any and all of the City's storm drain system in the vicinity of the Property. 2. Obligation of Property Owners. Withdrawal of Claim. In exchange for the Settlement Amount and recording of the Real Property Covenant, the Property Owners withdraw their Claim. In addition, the Property Owners agree that, except as necessary for handling their personal finances or as may be required by law, the Property Owners will not disclose the terms of this Agreement to any third parties without the City's written consent to such disclosure. -1- 3. No Admission of Fault. This Agreement is intended to be and is a compromise between the Parties. Nothing in this Agreement shall be interpreted, used, or construed as an admission of fault or wrongful conduct of any kind by any of the Parties. 4. Release. a. Full and General Release. In consideration for the agreements as set forth herein, the Property Owners, on behalf of themselves and their heirs, successors, assigns, insurers, lenders, lien holders, attorneys, agents, and other representatives do hereby release the City and the City's boards, commissions, departments, mayor, council members, managers, employees, attorneys, insurance companies, agents, and other representatives, from the Claim and any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney's fees, of any nature whatsoever, known or unknown, fixed or contingent, including but not limited to inverse condemnation, arising out of, based upon or relating to any flooding of the Property by water or other liquid flowing on, over, under, or across the Property's driveway and adjacent areas thereto, including but not limited to any water run-off onto the driveway from Calle Cadiz, that has occurred before, or occurs during or after, the execution of this Agreement (the "Release"). b. Waiver of Civil Code Section 1542: By releasing and forever discharging claims both known and unknown as above provided, the Property Owners expressly waive any rights under California Civil Code section 1542, which provides: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." The Property Owners waive and relinquish any rights and benefits that they have or may have under section 1542 of the Civil Code of the State of California. The Property Owners have performed a full and complete investigation of the facts pertaining to this Agreement, and the Property Owners acknowledge and agree that they are aware that they may hereafter discover facts in addition to or different from those which they now know or believe to be true with respect to the subject matter of this Release, but it is their intention hereby to fully and finally forever settle and release any and all matters, disputes and differences, known or unknown, suspected and unsuspected, which now exist, may exist or heretofore have existed, as against each other, arising out of the flooding or potential flooding of the Property by any water or other liquid flowing on, over, under, or across the Property's driveway and adjacent areas thereto, including but not limited to any water run-off onto the driveway from Calle Cadiz. In furtherance of this intention, the Release herein given shall be and remain in effect as a full and -2- complete general release notwithstanding discovery or existence of any such additional or different facts. 5. Effective Date of Agreement. This Agreement shall be binding and effective as of the latest date on the signature page of this Agreement, which date shall be the "Effective Date" of this Agreement. 6. Entire Agreement. This Agreement and exhibits and attachments hereto set forth the entire agreement of the Parties and supersedes any and all prior agreements or understandings, if any, between them pertaining to the subject matter hereof, and shall not be modified or altered except by a subsequent written agreement signed pursuant to Section 12 below. This Agreement shall be binding upon and shall inure to the benefit of the Parties, their respective representatives, shareholders, officers, directors, employees, affiliates, successors, heirs and assigns. 7. Representations and Warranties. The Property Owners hereby expressly represent and warrant that they have not transferred or assigned or attempted to transfer or assign the Claim or any of the other released claims that are subject to this Agreement. No claim of subrogation may be brought against the City under the Claim or any of the other released claims, and the Property Owners expressly agree to waive any subrogation rights against the City related to the Claim and any of the other released claims. The persons signing this Agreement hereby represent and warrant that they have the power and authority to bind any Party on whose behalf this Agreement is signed. The Property Owners acknowledge and agree that the City is materially relying upon the representations and warranties of the Property Owners set forth in this Agreement. If any of the Property Owners' representations and warranties as set forth herein are found to be untrue or inaccurate either at the signing of this Agreement or with the passage of time, or both, then such untrue or inaccurate representation and warranty shall be a material default and the basis for a breach of this Agreement. 8. Controlling Law. This Agreement shall be interpreted and construed in accordance with the laws of the State of California without regard to conflict of law principles. 9. Attorney's Fees and Costs. The Parties shall bear all of their own respective costs and attorney's fees incurred relating to this Agreement. In the event that a Party is required to initiate or defend any litigation relating to or arising out of this Agreement, the prevailing Party shall be entitled to recover from the other Party(ies) its actual attorney's fees, expert witness fees, costs of investigation and preparation, and other costs and expenses related thereto. -3- 10. Severability If any provision or part of this Agreement is held, determined, or adjudicated to be invalid, unenforceable or void for any reason, each such provision shall be severed from the remaining provisions of the Agreement and shall not affect the validity and enforceability of such remaining provisions. 11. Review of Agreement. The Parties each acknowledge and represent that they have read this Agreement, that they have had the opportunity to consult with their respective attorneys concerning its contents and consequences, that the Agreement is being executed solely in reliance on their respective judgment, belief, and knowledge of the matters set forth herein and on the advice of their respective attorneys, and that they enter this Agreement freely and voluntarily. 12. Neutral Interpretation. The Parties agree that all parts of this Agreement shall in all cases be construed as a whole according to their fair meaning and shall not be construed strictly for or against any Party hereto. 13. Modification. This Agreement shall not be modified, amended or supplemented unless such modifications, amendments or supplements are in writing and signed by the Party to be charged. 14. Counterparts. This Agreement may be executed in counterparts and by facsimile or other electronic delivery, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [signatures on next page] -4- IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: 12 _Z ( , 20 /4, TADROS TADROS Date: l izl , 20 I ELAINE TADROS Date: , 20 CITY OF LA QUINTA ATTEST: SIGNED IN COUNTERPART City Clerk APPROVED AS TO FORM By: sIrNrsumcaumniRPART City Attorney -5- By: SIGNED IN COUNTERPART Its: IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth below. Date: , 20 TADROS TADROS Date: , 20 Date: bee � , 20 ATTEST: By:_ SIGNED IN COUNTERPART ELAINE TADROS By: SIGNED 1N COUNTERPART CITY 0 LA QUINTA Its: ski r City Clerk - Susan May. is APPROVED AS TO FORM By: City Attorney - William H. Ihrke -5- Frank J. Spevacek, City Manager