TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 7, 2016
COMMITTEE ON JUDICIARY
Mr. David St. Pierre, Executive Director
Title
Authority to execute Settlement Agreement of K&K Ironworks, LLC v. Metropolitan Water Reclamation District of Greater Chicago and Sekisui SPR Americas, LLC., Case No. 14 L 11241, settling this matter at no cost to the District
Body
Dear Sir:
K&K Ironworks, LLC (K&K) filed a Complaint in the Circuit Court of Cook County, Illinois against the Metropolitan Water Reclamation District of Greater Chicago, (District) and Sekisui SPR Americas, LLC. (Sekisui) for damages allegedly sustained when K&K’s property flooded on several occasions in 2013 and 2014 (the “Lawsuit”). At the time of the flooding, Sekisui was performing work for the District near K&K’s property under District Contract No. 06-154-3S, Summit Conduit Rehabilitation.
Immediately upon receipt of K&K’s Complaint seeking monetary damages, the District tendered its defense to and sought indemnity from Sekisui and its commercial general liability insurance carrier, Tokio Marine America Insurance Co. (“Tokio Marine”). Tokio Marine accepted the District’s tender and appointed counsel to represent the District in the Lawsuit. The appointed counsel negotiated a settlement of the Lawsuit.
The settlement is reasonable and is in the District’s best interest. There is no cost to the District as a result of this settlement. All settlement amounts will be paid by Tokio Marine. The settlement is memorialized in a Settlement Agreement to be signed by all parties to the Lawsuit and Tokio Marine.
Therefore, the General Counsel requests that the Board of Commissioners grant him authority to execute a Settlement Agreement to effectuate the settlement of K&K Ironworks LLC v. Metropolitan Water Reclamation District of Greater Chicago, Case No. 14 L 11241, settling this matter at no cost to the District.
Requested, Ronald M. Hill, General Counsel, RMH:LLD:JJZ:EMA:crb
Recommended by David St. Pierre, Executive Director
Respectfully Submitted, Mariyana Spyropoulos, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 7, 2016