HomeMy WebLinkAbout83-112 - Beeco - Eminent Domain Litigation SettlementRESOLUTION NO. 83 -112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE MAYOR & CITY
CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY
AND BEECO, FOR SETTLEMENT OF EMINENT DOMAIN
LITIGATION
WHEREAS, in June, 1981, the City of Newport Beach, pur-
suant to a Joint Powers Agreement with the State Lands
Commission, initiated an eminent domain action in the Orange
County Superior Court entitled City of Newport Beach v. Beeco
Ltd. Case No. 35- 79 -89, against Beeco Limited, Royalty Owners,
Armstrong Petroleum Corporation and Mobile Oil Company; and
WHEREAS,
properties for oil
West Newport was d
tion between City,
Company; and
WHEREAS,
the eminent domain action to condemn certain
production purposes outside City limits in
ismissed in March, 1983, pursuant to a Stipula-
Armstrong Petroleum Corporation and Mobile Oil
the City of Newport Beach and the remaining
Defendants, Beeco Limited and Royalty Owners, now desire to
settle the issues still remaining and provide for the dismissal
of the eminent domain action, pursuant to certain terms and
conditions contained in an agreement: entitled "Agreement Between
the City of Newport Beach and Beeco,, et al in Settlement of
Litigation," a copy of which is attached hereto as Exhibit A; and
WHEREAS, the City Council has reviewed the terms and
conditions of the Agreement between City and Beeco and finds that
it is in the best interests of the citizens of Newport Beach to
enter into such agreement.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Mayor and City Clerk be and
hereby are authorized to execute that Agreement, attached as
Exhibit "A" hereto and entitled "Agreement Between City of
Newport Beach and Beeco, et al in Settlement of Litigation,"
under the terms and conditions provided herein.
a
RSP /Beeco
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ADOPTED this 24th day of_ October , 1983.
ZZ,
Mayor
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AGREEMENT BETWEEN THE CITY
OF NEWPORT BEACH AND BEECO, ET AL
IN SETTLEMENT OF ]LITIGATION
THIS AGREEMENT, made and entered into on
1983 by and between the CITY OF NEWPORT BEACH a chartered
municipal corporation organized and existing under the Con-
stitution and laws of the State of California (hereinafter
referred to as "the City "), and BEECO, LTD_, a California
corporation (hereinafter "Beeco "). Anne M. Brown, ..arian M.
Worthington, Trustee, George Hugh Banning, Estate of Hancock
Banning Jr., deceased, Security Pacific National Bank (as
Trustee of the Anne 0. Banning Testamentary Trust No. 06-2 -
08004 -0), Trust Services of America, Inc. (Trustee of Trust
No. 21- 1985 -00 -7 (Donald MacFarland) and Trust No. 21 -5142-
00-1 (John C. MacFarland)), Elizabeth B. Ames, Robert J.
Banning, Hancock Banning III, Julia McC. Banning, Selwyn J.
Graves, as Trustee, Francis P. Graves. Jr., Jane Graves
Otten, Nancy Banning Call, Katharine Banning Sisk, William P.
Banning, Jr. (individually and as Executor of the Will of
William P. Banning, deceased), Victoria Grier Harding, Karen
Louise Harding, Robert B. Harding, Richard S. Harding, Jr.,
Lloyds Bank California`(Trustee of the Suzanne B. Banning, et
al. Trust No. 6032 - 86760), Gifford Hanson, Ethel Hanson and
George Griffith (hereinafter collectively referred to as
"Royalty Owners "), all of whom agree as follows;
RECITALS
A. On or about June 15, 1981, the City of Newport
Beach, acting as the joint powers agency pursuant to a joint
powers agreement between the City and the State Lands Commis-
sion of the State of California (the "Commission ") initiated
an. eminent domain action entitled City of Newport Beach,
etc., et al vs. Beeco, Ltd.; etc., et al, Orange County
Superior Court Case Number 35 -79 -89 (hereinafter referred to
as the "eminent domain case ") against Beeco, Royalty Owners,
Armstrong Petroleum Corporation and Mobil Oil Company.
B. Pursuant to a stipulation entered into between the
City, Armstrong Petroleum Corporation and Mobil Oil Company,
09/29/83 EXHIBIT A
the City dismissed the eminent domain case as against Arm-
strong Petroleum Corporation and Mobil Oil Company on March
25, 1983- The City. Beeco and the Royalty Owners desire to
settle and provide for the dismissal of the eminent domain
• case pursuant to the terms of this. agreement.
NOW, THEREFORE., in consideration of the facts recited
above and the covenants, conditions and promises contained
herein, Beeco, Royalty Owners and the City hereby mutually
agree as follows:
AGREEMENTS
1. The parties shall stipulate to the dismissal with-
out prejudice of the eminent domain case in the form shown by
Exhibit A attached hereto. The stipulation provides for the
withdrawal by the City, for its own account, of sums on
deposit with the Court.
2. The City shall pay BeeCO and Royalty Owners, within
fifteen (15) days of the execution of this agreement, the sum
of Twelve Thousand ($12,000.00) Dollars, constituting litiga-
tion expenses incurred by Beeco and Royalty Owners as defen-
dants in the eminent domain case. Payment may be made by
delivering a check or draft Lo Beeco's attorney in the
above - set -forth amount payable to Beeco, Ltd.
3. The City shall pay Beeco and Royalty Owners within
fifteen (15) days of the execution of this agreement, the sum
of One Hundred Twenty -seven Thousand One Hundred Eighteen and
06 /100ths ($127,118.06) Dollars, which represents monies held
7 -2-
in trust by the City for the benefit of Beeco and Royalty
Owners, for royalties which have accrued to Beeco's and
Royalty Owners' account through the date of September 30,
1983 as a result of the City's operation of certain tideland
• oil wells during City's possession of the property sought to
be condemned. Payment may be made=_ by delivering a check or
draft in the above - set -forth amount to Beeco's attorney pay-
able to Beeco, Ltd.
4. The City shall pay Beeco and Royalty Owners, within
fifteen (15) days of the execution of this agreement, the sum
of Six Thousand Six Hundred Thirty and 55 /100ths ($6,630.55)
plus $25.65 per day from September 30, 1983 until payment.
This represents interest (at the rate of 7% simple interest)
on the royalties held in trust by the City for the benefit of
Beeco and Royalty Owners. Payment may be made by delivering
a check or draft in the above - set -forth amount to Beeco's
attorney payable to Beeco, Ltd.
5. This agreement is intended to be a compromise and
settlement between the parties of all disputes relating to
the filing, prosecution, dismissal and abandonment of the
eminent domain case and the taking of prejudgment possession
of the property sought to be condemned pursuant to the emi-
nent domain case. No party admits any liability to the other
by reason of this agreement, and all parties acknowledge that
this agreement is entered into for the purpose of compromis-
J -3-
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ing and settling disputed claims and rights in the eminent
domain case.
6. Each individual executing this agreement on behalf
of the parties hereto represents and warrants that he or she
is duly authorized to execute and deliver this agreement on
behalf of such party in accordance with its terms.
APPROVED AS TO FORM:
CITY ATTORNEY OF NEWPORT BEACH
By
Robert Burnham
SPECIAL COUNSEL FOR CITY OF
NEWPORT BEACH
RUTAN & TUCKER
By .
Michael D. Rubin
COUNSEL FOR BEECO AND
ROYALTY OWNERS
LAW OFFICE OF ROBERT F.
WALDRON, INC.
By
Robert F. Waldron
-4-
CITY OF NEWPORT BEACH
X
Mayor
By
City Clerk
BEECO AND ROYALTY OWNERS
By