HomeMy WebLinkAbout03-038 - American International Recovery - Berschauer Phillips Construction Legal• • 4,a3-o3g
Agreement Regarding Legal Representation
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This Agreement dated this (7. day of ,'v:;u , 2002; between American
International Recovery ("AIR") and The City of)TukWila ("Tukwila") is made between the
parties regarding the proportional share of the costs and control of litigation in the matter of
The City of Tukwila v. Berschauer Phillips Construction, Inc. ("Berschauer").
Recitals
Whereas the City of Tukwila is a municipal corporation organized under the laws of the State
of Washington, and the owner of certain real property commonly known as the City of
Tukwila Community Center, which sustained a loss of $75,137.21 on or about December 22,
1998.
Whereas Berschauer is liable for the loss.
Whereas the Washington Cities Risk Pool insures Tukwila and AIR is the recovery agent of
Tukwila's insurer who paid a portion of the above referenced loss in the amount of
$50,137.21.
Whereas the City of Tukwila incurred the remainder of the loss in the amount of $25,000.00.
Whereas Washington State does not have a "direct action" statute, and therefore insurers
must bring suit in their insured's behalf to recover from the responsible party.
Whereas the City of Tukwila is contractually obligated to cooperate with AIR in the recovery
for the above referenced loss.
Whereas Tukwila's share of the loss is 33.27% percent of the total loss.
Whereas AIR's share of the loss is 66.73% percent of the total loss.
Therefore, the parties agree as follows:
Agreement
1. The above recitals are incorporated herein by reference
2. The law firm of Scheer & Sotirhos, LLP has been retained by the parties to
prosecute this claim on behalf of the parties to collect the monies owed.
3. The parties agree to pay their proportional share of attorney's fees and costs as set
forth in the engagement letter dated October 1, 2002 and attached hereto as
exhibit A and incorporated by reference herein.
Agreement Regarding Legal Representation
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4. While AIR shall be responsible to pay all costs of litigation as they are incurred,
to the extent of any recovery, AIR and Tukwila shall share in the costs and
attorney's fees incurred in this litigation on a pro rata basis based on their
proportional share of the loss. Tukwila shall be responsible for 33.27% of the
attorney's fees and costs incurred. AIR shall be responsible for 66.73% of the
attorney fees and costs incurred, which shall be paid from the proceeds of any
settlement, arbitration award, or judgment. Any remaining sums remaining after
all costs and fees have been paid from any settlement, judgment, or arbitration
award shall be distributed among the parties pursuant to the above referenced pro
rata formula (33.27% to Tukwila, 66.73% to AIR).
5. AIR shall have sole authority to direct the course of the litigation, and has the sole
authority to make offers of settlement, consider and accept offers of settlement,
and all other decisions concerning the litigation.
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Dated this 677
' day o'\ n� _ , 200g.
By:
American International Recovery, Inc.
By:
Its:
City of Tukwila
ts: el/37/30/r/s/.57RAT .
Agreement Regarding Legal Representation
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Approved as to Form
Agreement Regarding Legal Representation
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