Explanation
Background: This ordinance authorizes the Director of Public Utilities to execute a compromise agreement with Inland Products, Inc., as a settlement of a lawsuit filed by Inland Products, Inc. for damages relating to flooding that occurred during the early days of January of 2005. Inland Products, Inc. has claimed damages in the total amount of Eleven Million Six Hundred Thousand Dollars ($11,600,000.00) as a result of flooding and sewer backup. This matter went to trial before a jury and the jury, after having heard all of the evidence, returned a verdict on February 3, 2012, in favor of Inland Products, Inc. in the total amount of Eleven Million Six Hundred Thousand Dollars ($11,600,000.00). The Department of Public Utilities and Inland Products, Inc. have determined that it is in the best interests of both parties to settle this lawsuit and to resolve any claims relating to this 2005 flood event. Through negotiations with the City Attorney's Office, the City has agreed to pay, and Inland Products, Inc. has agreed to accept, Ten Million Dollars ($10,000,000.00) in complete settlement of any and all of Inland Products, Inc.'s claims related to this lawsuit and, further, to resolve all issues in dispute now existing between Inland Products, Inc. and the City of Columbus relating to the operation of the City's sewer system, including any claims relating to a certain flood of Inland Products, Inc.'s property that occurred in January of 2005. This settlement agreement provides that, in consideration of the settlement amount, Inland Products, Inc. will file a Receipt and Satisfaction of Judgment and release the City of any liability for any claims that Inland Products, Inc. ever had or now has from the beginning of time to the present against the City related to the sewer system and/or failure of the sewer system, including any claims asserted in the lawsuit and claims that Inland Products, Inc., may have against the City as a result of the 2004 and...
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