R-12-05VILLAGE OF DEERFIELD
LAKE AND COOK COUNTIES, ILLINOIS
RESOLUTION NO. R -12 -05
A RESOLUTION AUTHORIZING A SETTLEMENT AGREEMENT
AND MUTUAL RELEASE WITH RESPECT TO THE
HAZEL AVENUE RESERVOIR MODIFICATIONS PROJECT
WHEREAS, the Village of Deerfield commenced a lawsuit in the Circuit Court for the
Nineteenth Judicial Circuit, Lake County, Illinois, Docket No. 08 L 0803 (the "Lawsuit "), making
certain claims against Kovilic Construction Company and North American Specialty Insurance
Company in connection with the construction of certain improvements known as the Hazel Avenue
Reservoir Modifications Project (the "Project "); and
WHEREAS, the parties to said lawsuit desire to compromise and settle the disputes between
and among them as provided in the Settlement Agreement and Mutual Release attached hereto as
Exhibit A (the "Settlement Agreement "); and
WHEREAS, the Village Attorney of the Village of Deerfield has recommended that the
Village compromise and settle the Lawsuit as provided in the Settlement Agreement; and
WHEREAS, the corporate authorities of the Village of Deerfield have determined that it is
in the best interests of the Village of Deerfield to compromise and settle the Lawsuit as provided in
the Settlement Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, in
the exercise of its home rule powers, as follows:
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SECTION 1: That the corporate authorities of the Village of Deerfield hereby authorize and
approve the compromise and settlement of the Lawsuit as provided in the Settlement Agreement
attached hereto as Exhibit A.
SECTION 2: That the Village Manager of the Village of Deerfield is authorized and
directed to execute the Settlement Agreement for and on behalf of the Village of Deerfield;
SECTION 3: That this Resolution shall be in full force and effect from and after its passage
and approval as provided by law.
PASSED this 5th day of March , 2012.
AYES: Benton, Farkas, Jester, Oppenheim, Seiden, Struthers (6)
NAYS: None (0)
ABSENT: None (0)
ABSTAIN: None (0)
APPROVED this 5th day of March , 2012.
Village PresWent
ATTEST:
Vill ge Clerk
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SETTLEMENT AGREEMENT AND MUTUAL RELEASE
THIS AGREEMENT is entered into among the VILLAGE OF DEERFIELD, ILLINOIS
(the "Village," or "Deerfield "), KOVILIC CONSTRUCTION COMPANY, INC. ( "Kovilic "),
NORTH AMERICAN SPECIALTY INSURANCE COMPANY ( "NAS "), BARRIER CORP.,
FIRST IMPRESSION, INC. ( "First Impression "), and QBE INSURANCE CORPORATION
( "QBE "), all of which may hereinafter be referred to as the "Parties" hereto, and each of which
may hereinafter be referred to as a "Party."
WHEREAS, disputes have arisen between and among the Parties regarding the
construction of improvements at and to the Hazel Avenue North and South Reservoirs in James
C. Mitchell Park, Deerfield, Illinois, known as the Hazel Avenue Reservoir Modifications
Project ( "the Project "); and
WHEREAS, Deerfield commenced an action, making certain claims against Kovilic and
NAS, in the Circuit Court for the Nineteenth Judicial Circuit, Lake County, Illinois, Case No. 08
L 0803 ( "the Deerfield suit "); and
WHEREAS, Kovilic commenced a third -party action, making certain claims against
Barrier Corp. and First Impression, in the Deerfield suit; and
WHEREAS, QBE issued its policy of insurance numbered FCGC706948 -00 to Paul J.
Krez Company as the named insured, and pursuant to an endorsement Barrier is also a named
insured, and the policy provided for Commercial General Liability Insurance on a primary basis
with an effective policy period from May 31, 2002 to and including May 31, 2003, and the
policy was renewed for the period of May 31, 2003 to May 31, 2004 under policy number
FCGC706948 -01 and renewed thereafter for the periods of May 31, 2004 to May 31, 2005, and
May 31, 2005 to May 31, 2006, under policy numbers FCGC706948 -02 and FCGC706948 -03,
respectively ( "the QBE policies "), and Barrier Corp. and Kovilic have tendered to QBE their
respective defenses as to the claims against them in the Deerfield suit; and
WHEREAS, QBE commenced a declaratory judgment action in the Circuit Court of
Cook County, Illinois, Case No. 09 CH 24930 ( "the QBE suit ") seeking a declaration that the
QBE owes no duty to defend Barrier Corp. or Kovilic against the Deerfield suit; and
WHEREAS, the Parties desire to compromise and settle the disputes between and among
them with respect to the Project, the Deerfield suit, and the QBE suit;
NOW THEREFORE, in consideration of their mutual promises herein contained, the
Parties agree as follows:
1. Monetary Consideration. On or before March 15, 2012,
(a) Kovilic shall pay or cause to be paid to Deerfield the sum of $30,000;
(b) NAS shall pay or cause to be paid to Deerfield the sum of $30,000;
(c) Barrier Corp. shall pay or cause to be paid to Deerfield the sum of $30,000;
(d) QBE shall pay or cause to be paid to Deerfield the sum of $30,000; and
(e) First Impression shall pay or cause to be paid to Deerfield the sum of $5,000;
for a total monetary consideration of $125,000 to be paid to Deerfield.
2. Stipulation to Dismiss the Deerfield Suit and the OBE Suit. The Parties agree and
hereby stipulate to the dismissal of the Deerfield suit in its entirety, including the dismissal of
Deerfield's Complaint, and the dismissal of Kovilic's Third -Party Complaint, and to the
dismissal of the QBE suit in its entirety, including the dismissal of QBE's complaint and Barrier
Corp.'s counterclaim, with prejudice and with each Party to bear its own costs of suit, promptly
after the payments and receipt of the monetary consideration described above. The Parties
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understand and agree that a copy of this Agreement will be filed with the Clerk of the Circuit
Court of the Nineteenth Judicial Circuit and submitted to the Court in support of an Agreed
Order of Dismissal of the Deerfield suit.
3. Mutual Release of Claims. In further consideration of this Agreement, each Party,
for itself and for its affiliated companies, corporate parents, subsidiaries, successors and assigns,
releases and forever discharges each of the other Parties and their respective affiliated companies,
corporate parents, subsidiaries, successors and assigns of and from all manner of actions, causes
of action, suits, defenses, debts, covenants, controversies, damages, agreements, promises,
claims and demands whatsoever, in law or equity, which any or all of them have, had, or may in
the future have, whether now known or unknown, which arise out of or relate to the Project or
the QBE policies with respect to the Project, or any claim asserted, or which could have been
asserted, in the Deerfield suit and the QBE suit.
4. Nature of Compromise. The Parties intend this Agreement to be a good -faith
compromise and settlement of disputed claims, and this Agreement is not to be construed as an
admission of liability by any Party.
5. Complete Agreement. This Agreement constitutes the entire agreement and
understanding between and among the Parties, and supersedes all prior agreements and
understandings between and among them relating to the subject matter hereof. This Agreement
shall not be amended, modified or changed except by a writing signed by all of the Parties.
6. Counterparts. This Agreement may be executed in counterparts, each of which
shall be considered an original, and all of which together shall constitute one Agreement.
7. Governing Law. All issues of interpretation or enforcement of this Agreement
shall be governed by Illinois law.
IN WITNESS WHEREOF, the Parties cause this Agreement to be executed and effective
as of this 5th day of March, 2012.
VILLAGE OF DEERFIELD, ILLINOIS
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By:
Kent S. treet, Village/Manager
KOVILIC CONSTRUCTION COMPANY, INC.
By:
Nikola Kovilic, President
NORTH AMERICAN SPECIALTY INSURANCE COMPANY
By:
Brian J. Golbach, Assistant Vice President
BARRIER CORP.
By:
Paul K. Helmer, President
QBE INSURANCE CORPORATION
By:
FIRST IMPRESSION, INC.
By:
Frederick G. Lobb, President
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