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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