Item N10BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
POTENTIAL -- ADD ON
Meeting Date: August 19, 2009 Division: County Attorney
Bulk Item: Yes No x Staff Contact Person: Bob Shillinger, x3470
AGENDA ITEM WORDING: Ratification of settlement agreement in Tropex Construction
Services, Inc. v. Monroe County, CA P 06-44.
ITEM BACKGROUND: Tropex was selected in 2004 to build the Tavernier Fire Station for
$535,430.00. In June of 2005, Tropex notified the County that it was terminating the agreement. In
July of 2005, the County discharged Tropex. In January of 2006, Tropex filed suit against the County
for breach of contract. The County counterclaimed against Tropex and named its surety Developers
Surety and Indemnity Co. as an additional Defendant. Trial is scheduled before Judge Garcia in
November of 2009.
The County's claim against Tropex is based on the additional $449,028.00 the County had to pay the
replacement contractor to complete the job over and above the contract price agreed to by Tropex, plus
interest, attorney's fees, and liquidated damages the latter of which is not recoverable from the Surety.
Tropex is also being sued by its Surety in federal court due to Tropex s failure to indemnify the Surety
for this and other claims. Tropex asserts that it is on the verge of bankruptcy.
On Monday, August 17, 2009, the parties met in court ordered mediation which produced a tentative
settlement agreement wherein the Surety agreed to settle the claim by paying the County $300,000.00
in exchange for a full release of any and all claims against Tropex and the Surety. Each side would
bear its own attorney's fees and costs. The Surety would tender the $300,000 within 20 days after
BOCC approval. Ratification of the settlement agreement by the BOCC is the last remaining condition
that would need to be satisfied in order to finalize the agreement.
A clo
sed sed session has been scheduled for August 19, 2009 to discuss the settlement agreement. If all
this item could be added on
members of the BOCC are inclined to approve ussion.t Alternatively, the item could be brought
to the agenda for consideration following the closed se
back at a later date if any commissioner wanted more time to consider the agreement.
In light of the timing of the mediation, the details of the proposed settlement agreement had not been
drafted, must less finalized prior to the deadline for adding items onto the agenda.
PREVIOUS RELEVANT BOCC ACTION: In July 2009, the Board agreed to hold a closed session
on August 19, 2009.
CONTRACT/AGREEMENT CHANGES: n/a
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: none
BUDGETED: n/a
COST TO COUNTY:none SOURCE OF FUNDS: n/a N , I a
REVENUE PRODUCING: Yes, $300,000.00 one time payment.
APPROVED BY: County Atty xx OMB/Purchasing Risk Management
DOCUMENTATION: Included
DISPOSITION:
Revised 2105
AGENDA ITEM #
IN THE CIRCUIT COURT OF THE 16TH
JUDICIAL CIRCUIT IN AND FOR
MONROE COUNTY, FLORIDA
CASE NO.: 06 CA 44 P
TROPEX CONSTRUCTION SERVICES, INC.,
a Florida corporation,
Plaintiff,
V.
MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS,
Defendant.
T pa
rties arties and/or counsel, subject to their full f the above re ere fully
matter upon
set forth
below, voluntarily consent and agree to settlement o
the following terms and conditions: #,
1, Within 20 days from the date of the date of final approval of this
Agreement as more fully set forth hereiCPlaintiff/Counter-
Settlement sh llp
Defendant, Developers Surety And Indemnity�
Defendant/Counter-Plaintiff, Monroe County Board of County Commissioners
oe
("BOCC"), the total amount of $300,000.nd, check made pay
County Board of County Commissioners, and delivered to Ira Libanoff,
Esq., at his offices.
2_ The undersigned representative and shall beounsel for the placedupon the oagendarepresents
for the next
this Settlement Agreement sha P Approvalroval.
available meeting of �Cbfothe HOCCeration shall bena condition pedent
of this Settlement Agreementy
to any of the obligations of the parties herein.
Also, subject to final BOCC approval of this Settlement Agreement, each
3. case/project ect and bond specific, general
party agrees to execute mutual, case/p j
ssal of all claims, with prejudice, each
releases; and, a voluntary dismi
side to bear their own attorney's fees and costs.
4. Each party and/or their counsel shall pay their share of the Mediation
fees and costs. The Court shall retain jurisdiction to enforce the
terms of this settlement, including enforcement of the payment of
mediation fees and costs.
Date: 4.17.09
Monroe County Board o ounty
Cohen s o ers
Authoriz d epre ntative
MONROE COUNT ATTORNEY
APP9OVEP",W PPtM--
ROBERT B.%HILLINGEA, JR.
CHIEF A88L1'Ay COUNTY ATTORNEY
Dates
Counsel for roe Count
Ira L. Libanoff, sq.
Date: 4.17.09
Developers Surety and Indemnity
Company
�7 r
Aut iz d representative
Tropex Construction Services, Inc.,
By and through Developer's Surety and
Indemnity Company, as attorney -in -fact
. --
Gary A. Pe ins Claims Ass't Manager
heel o ve pers
Guy A. Harr s Esq.