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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. • 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 • ADOPTED this 24th day of_ October , 1983. ZZ, Mayor 2 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- • 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