HomeMy WebLinkAboutC-2420 - Agreement for Settlement of Eminent Domain LitigationTO: CITY COUNCIL
FROM: Utilities Director
4
BY THE CITY COUNCIL October 24, 1983
CITY Of NEWPORT BEACH
CITY COUNCIL AG NDA
OCT 24 1983 ITEM NO. —2(At
SUBJECT: FINAL SETTLEMENT AND DISMISSAL OF EMINENT DOMAIN ACTION WITH BEECO,LTD.
AND ROYALTY OWNERS, FOR OIL PRODUCTION PROPERTIES OUTSIDE THE CITY LIMITS
OF NEWPORT BEACH
RECOMMENDATION:
Adopt a resolution approving an agreement between the City of Newport Beach
and Beeco, Ltd. et al in settlement of eminent domain litigation.
DISCUSSION:
On May 26, 1981 the City of Newport Beach, acting under a Joint Powers
Agreement with the State Lands Commission authorized the condemnation of certain
properties for oil production purposes outside the City Limits in West Newport. The
proposed agreement will provide for a final settlement and dismissal of the condem-
nation action between the City of Newport Beach and Beeco Ltd et al.
Under the terms of the proposed agreement the City, Beeco and Royalty Owners
agree to the following:
1. All parites agree to a dismissal without prejudice.
2. The City can withdraw for its own account sums on deposit with the court
in the amount of $511,320 plus interest, as applicable.
3. The City will pay litigation expenses of $12,000.00.
4. The City will release to Beeco and royalty owners the amount of
$127,118 for royalties accrued from the time the City began operation
of the oil wells through September 30, 1983, plus 7% simple interest
for the period since September 30, 1983. Funds for this have been
budgeted and are encumbered in the Oil and Gas budget account
23- 5440 -000.
Dseph,T Devlin
tiIitt Director
be
• � r
AGREEMENT BETWEEN THE CITY
OF NEWPORT BEACH AND BEECO, ET AL
IN SETTLEMENT OF LITIGATION
THIS AGREEMENT, made and entered into on (`/(.L. «
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, i.arian M.
Worthington, Trustee, George Hugh Banning, Estate of Hancock
Banning. Jr., deceased, Security Pacific National Bank (as
Trustee of the Anne O. 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:
RPf'TTLT.0
A. On or about June 15, 1981, the C,ity 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
r
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,
1 09/29/83
the City dismissed the eminent domain Base 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 to 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
-2-
in trust by the City for the benefit of Beeco and Royalty
f
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 78 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
F
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-
-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 A1+ORNEY OF NEWPORT BEACH
05
Rob Irt BUrnKam
SPECIAL COUNSEL FOR CITY OF
NEWPORT BEACH
RUTAN & TUCKER
By
Michael D. Rubin
COUNSEL FOR BEECO AND
ROYALTY OWNERS
LAW qF OF E OF ROBER F.
WA INC.
BY
o .rt F. Waldron
-4-
CITY OS NEWPORT BEACH
ayor
ty
BEECO AND ROYALTY OWNERS
By k
. • Agenda Item No. F -2(a)
RESOLUTION 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, the eminent domain action to condemn certain
properties for oil production purposes outside City limits in
West Newport was dismissed in March, 1983, pursuant to a Stipula-
tion between City, Armstrong Petroleum Corporation and Mobile Oil
Company; and
WHEREAS, 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.
ADOPTED this a_ day of C_;CiC" , 1983.
ATTEST:
City Clerk
RSP /Beeco
2
11
3i
4
5
6
7
8
9
10
11
12
13
14
15
16
171
18
19
20
21
22
23
0
RUTAN & TUCKER
HOMER L. McCORMICK, JR.
MICHAEL D. RUBIN
JOEL D. KUPERBERG
611 Anton Boulevard Suite 1400
P.O. Box 1950
Costa Mesa, California 92626
(714) 641 -5100
ROBERT BURNHAM, City Attorney
City of Newport Beach
3300 Newport Boulevard
Newport Reach, California 92663
Attorneys for Plaintiff
C-)��<
CITY of g\ CCT 1 1933
NE'I'rORT BEACH,
LEE
NOV 3 1983w a.:
CITY fL; 1( 1
i
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF ORANGE
CITY OF NEWPORT BEACH, acting as
the Joint Powers Agency pursuant
to a Joint Powers Agreement
entered into between the CITY OF
NEWPORT BEACH and the STATE LANDS
COMMISSION OF THE STATE OF
CALIFORNIA,
Plaintiffs,
-vs-
a corpora ion; DOES 1 through
100, inclusive, and ALL PERSONS
UNKNOWN CLAIMING AN INTEREST
IN THE PROPERTY (IES),
Defendants.
CASE NO. 35 -79 -89
STIPULATION AND ORDER
RE DISMISSAL OF ACTION
AS AGAINST REECO AND ROYALTY
OWNER DEFENDANTS, WAIVER OF
ALL EMINENT DOMAIN DAMAGES,
AND WITHDRAWAL OF SUMS
DEPOSITED WITH THE COURT
24 Plaintiff, CITY OF NEWPORT BEACH ( "the City "), acting as the
25 Joint Powers Agency pursuant to a Joint Powers Agreement between
26 the City and the STATE LANDS COMMISSION OF THE STATE OF CALIFORNIA
27 ( "the Commission "), and Defendants BEECO, LTD., a California
28 corporation, (hereinafter "Beeco "), Anne M. Brown, Marian M.
-1-
i 11
1 2'
3
4.
5,
61,
71
8
91
10
11
12
13
14
15
16
17',
18
19
20
211
221
23
24
25
26'1
27
28
0
0
Worthington, Trustee, George Hugh Banning, Eatate of Hancock
Banning, Jr., deceased, Security Pacific National Bank (as Trustee -
o£ 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, 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 of 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 ") , acting by and through their respective
attorneys of record, hereby stipulate and agree as follows:
1. Plaintiff shall dismiss, without prejudice, the
aboveentitled action.
2. Beeco and Royalty Owners hereby waive any and all claims
against the City and the Commission (individually and as parties
to the Joint Powers Agreement) with respect to the filing,
prosecution, dismissal and /or abandonment of the above - entitled
eminent domain action, including, but not limited to, all court
costs, claims relating to the taking of prejudment possession of
the property sought to be condemned, abandonment costs, litigation
costs, interim damages and attorney's fees, or any claims pursuant
to California Code of Civil Procedure Sections 1036, 1245.010 et
seq., 1250.410 et seq., 1255.410 et seq., 1263.205 et seq.,
-2-
1
2
3
4
5
6
7
8
9''
10
11
121
131
14
15
16
17
18
191
20i
21
22.
23i
24
25
26
27'
28
1263.310 et seq., 1263.410 et seq., 1263.510 et seq., 1263.610 et
seq., 1268.310 et seq., 1268.410 et seq., 1268..510 et seq.,
1268.610 et seq., 1268.620, and 1268.710 et seq., which Aeeco
might otherwise assert against the Plaintiff herein in connection
with the above - entitled action.
3. The City shall be entitled to withdraw for its own
account the sum of Five Hundred Eleven Thousand Three Hundred and
Twenty Dollars ($511,320.00), plus interest thereon, if
applicable, previously deposited with the Treasury of the County
of Orange on June 15, 1981, by the City as probable compensation
in the above - entitled action.
DATED: dG,0 /14 z 1983
DATED:
RUTAN & TUCKER
By
1983
J461 D. Kuperberg
torneys for Plaintiff
LAW OFFICES OF ROBERT F. WALDRON, INC
f
By
Robert Waldron
Attorney for BEECO and
ROYALTY OWNERS
-3-
I
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17,
181
19;
20
21'
22
23
24
25
26
27
28
O R D E R
GOOD CAUSE APPEARING, IT IS HEREBY ORDERED AS FOLLOWS:
1. The above entitled action shall be, and it hereby is,
dismissed pursuant to the foregoing stipulation between the
parties.
2. The deposit of probable compensation in the amount of
Five Hundred Eleven Thousand Three Hundred and Twenty Dollars
($511,320.00), now held by the County Treasury, shall be paid by
such Treasurer to the City of Newport Beach, together with the
interest such sum may have accrued while held by such Treasurer,
at the following address:
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Attention: Robert J. Dixon
DATED: kT- 3 " 1w
-d-
Judge of the Superior Court