Res. No. 020-00-10913RESOLUTION NO.20-00-10913
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING
SETTLEMENT OF PENDING LITIGATION;APPROVING A
SETTLEMENT AGREEMENT BETWEEN THE CITY OF
SOUTH MIAMI AND THIRD GROUP MORTGAGE,INC.;AND
PROVIDING AN EFFECTIVE DATE
WHEREAS,TheCity of SouthMiamiinitiatedaforeclosurecasestyled
City of South Miami v.Third Group Mortgage,et al.,Case no.97-6031 (11th Cir.
1997),allegingamongotherthings,foreclosureduetomunicipalliensonthe
property;and,
WHEREAS,Davis Gardens Homeowner's Association initiated a second
foreclosure complaint styled Davis Gardens Homeowners'Association,Inc.,et al.
v.Third Group Mortgage,et al,Case no.95-6317 (11th Cir.1995),alleging
amongotherthingsaforeclosureactionunderFloridalawfor non-payment of
association fees,naming City of South Miami asa defendant based onits
municipal liens;and,
WHEREAS,JerichoAsset Management Corp.initiatedathird foreclosure
complaintstyled Jericho Asset Management Corp.v.Third Group Mortgage,et
aL,Case no.97-24893 (11th Cir.1997),alleging among other things a foreclosure
actionunderFloridalawfor non-payment of mortgagenotes,andnamingCity of
SouthMiamiasadefendantbasedonthe City's municipalliens.
WHEREAS,the "property owner"ThirdGroup Mortgage hasdeclared
Chapter 11 bankruptcyundertheactionstyled In re Third Group Mortgage,Inc.,
Caseno.899-80421-288(U.S.Bankruptcy E.D.N.Y.),alleginginsolvencytopay
creditors;and,
WHEREAS,ThirdGroupMortgagehasagreedtoastipulation of
settlementbetweentheCity of SouthMiamiandThirdGroupMortgage,inwhich
ThirdGroupshallpaytheCity of SouthMiami$25,000upontheBankruptcy
Court's confirmation of Third Group's plan of reorganization.
WHEREAS,the parties abated litigation,or did not initiate threatened
litigation,while they negotiated a settlement of their claims;and,
Additions shownby underlining anddeletionsshownby overstriking.
WHEREAS,subject toapprovalbythe Mayor andtheCity Commission,
the representatives of thecityandthe claimants have reached a settlement of the
claims;and,
WHEREAS,thecityattorney recommends approval of the settlement
agreement;and,
WHEREAS,pursuant to§164.062,Fla.Stat.,this action is taken ata
properly noticed public hearing;and,
WHEREAS,the Mayor andCity Commission believe thatitisinthebest
interest of thecityto approve the settlement agreement.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA:
Section 1.ThesettlementagreementattachedasApp.1isapproved.
Section 2.Thisresolutionshalltakeeffectimmediatelyuponapproval.
PASSED AND ADOPTED this 18th day of January ,2000.
ATTEST:APPROVED:
t-jJ^Z*^
CITY CLERK MAYOR
READ AND APPROVED AS TO FORM:
COMMISSION VOTE:
Mayor Robaina:
Vice Mayor Russell:
Commissioner Feliu:
Commissioner Bethel:
Commissioner Bass:
CITY ATTORNEY
(%A-
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Res.No.20-00-10913
5-0
Yea
Yea
Yea
Yea
Yea