HomeMy WebLinkAboutCity of Tamarac Resolution R-86-193Introduced by:ClvilTemp. Reso. #4155
1
1
2
3
4,
51'
Fl
6
9
10
it
12
1s
14
15`
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-86-193
A RESOLUTION APPROVING AND ACCEPTING A COMPRO-
MISE OF CLAIM FILED BY THE CITY AGAINST GRANT
THORNTON.FORMERLY KNOWN AS ALEXANDER GRANT &
COMPANY; AND PROVIDING AN EFFECTIVE -DATE.
WHEREAS, the City has instituted a civil lawsuit against
Alexander Grant & Co. seeking to recover its losses incurred by
the City's investments with ESM Government Securities, Inc.
("ESM"); and
WHEREAS, the City has filed a claim in bankruptcy
against the estate of the Debtor, ESM Group, Inc. and its affili-
ated and related companies; and
WHEREAS, an agreement (the "Agreement") has been pro-
posed by Grant Thornton, formerly known as Alexander Grant & Co.
("Grant") whereby the City would receive an amount which is pre-
sently estimated to be approximately $3,500,000 of the distribu-
tion of $50,000,000 according to an allocation agreement among
the public body creditors of ESM; and
WHEREAS, the City believes the agreement to be a wise
and judicious settlement of its claim against Grant and wishes to
so settle and fully compromise its claim
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF TAMARAC, FLORIDA:
SECTION 1: That in consideration of the City sharing
in the distribution of $50#000#000 with other public body credi-
tors of ESM; the City approves and accepts the compromise of
claim Agreement proposed by Grant, which Agreement provides that
the City shall:
1. Release Grant and all former and present partners,
principals, employees, and insurers of Grant for
all claims and liability discovered or accrued at
any time arising out of any transaction between the
City and ESM; and
2.
Reduce the City's allowed net equity claim against
the estate of the Debtor in an amount reflective of
its receipt of the City's share of the proceeds
paid under the Agreement and approve the reduction
by the Trustee of his demand for judgment in Civil
Action No. 85-6319--CIV-GONZALEZ in an amount re-
flective of the receipt of the City's share of the
proceeds paid under the Agreements and
3.
Indemnify Grant and each former and present part-
ner, principal and employee of Grant for any loss
which any such Grant indemnitee incurs directly
through payment upon either final judgment or com-
promise which is specifically predicated upon a
claim against such Grant indemnitee for the legal
right of contribution or indemnity for sums previ-
ously paid to the City by a defendant other than
Grant or any other former or present partner, prin-
cipal or employee.
SECTION
-2: This resolution shall become effective
immediately
upon adoption pursuant to the written terms of ,the
Agreement.
PASSED, ADOPTED AND APPROVED this day of,,;_,�,
1986.
A2 ,
—,vnU -..
test:
CITY CLERK/ a
I HEREBY CERTIFY that I have
approved the form and correctness
of this Resolution.
CITY A�TO
RECORD OF CGUNCIL VOTE
MAYOR:
HART
DIST. 1:
C/W MASSARO
DIST. 2:
C/M STELZER
DIST. 3:
C/M GOTTESMAN
DIST. 4:
V/M STEIN
-2-