Res No 002-18-15034RESOLUTION NO. 002-18-15034
A Resolution authorizing and instructing the City Attorney to settle the case
of Orlando Martinez de Castro versus the City of South Miami, Case Number
13-9342 CA 15 and Appellate Case Number 3D16-2421 and instructing the
City Manager to take the necessary steps to comply with the settlement terms
and to pay the settlement amount.
WHEREAS, the City Manager offered to payout the remainder of Mr. Martinez de
Castro's employment agreement and allow him to retire honorably and without the spector of
being terminated; and
WHEREAS, Mr. Martinez de Castro declined the City Manager's offer, refused to settle
his employment disagreement, sued the City and was later terminated by act of the majority of
the City Commission, and
WHEREAS, a fmal judgment was rendered wherein the Court determined: (1) The City
did in fact have the right to terminate Mr. Martinez de Castro, but (2) that Mr. Martinez de
Castro was entitled to the remainder of the compensation and benefits under his previous
employment agreement; and
WHEREAS, the fmal judgment was affirmed by the Third District Court of Appeals
without opinion: and
WHEREAS, the City has filed a motion for rehearing before the Third District Court of
Appeals which is currently pending; and
WHEREAS, the only remaining issue, other than the motion for rehearing, is whether
the trial court erred in finding that Mr. Martinez de Castro was entitled to attorney fees at the
trial court and appellate court level and, if so, the amount ofthose fees; and
WHEREAS, a settlement was negotiated by the City in order to limit the fmancial
impact to the City's budget, by limiting further court proceedings and attorney expenses, and the
terms of the settlement include releasing claims and any supporting evidence that Mr. Martinez
de Castro committed numerous unethical acts while employed by the City,
WHEREAS, the Mayor and City Commission desires to settle the entire case including
trial and appellate attorney fees and costs.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSIONERS OF THE CITY OF SOUTH MIAMI, FLORIDA:
Section 1. The City Attorney is hereby authorized and instructed to settle the case for
$1,025,000.00, in exchange for a Joint General Release, releasing all of Mr. Martinez de Castro's
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Res. No. 002-18-15034
claims (other than for his other currently filed cases), including but not limited to the amount of
his judgment, all pre-and post-judgment interest and all trial and appellate fees and costs.
Section 2. The City Manager is instructed to sign a Joint General Release of all claims
related to Mr. Martinez de Castro's employment with the City of South Miami, including the City's
claims that Mr. Martinez de Castro committed numerous unethical acts while employed by the
City, and to take all appropriate steps to be able to pay and to pay the settlement amount within 30
days.
Section 3. Severability. If any section clause, sentence, or phrase of this resolution is for
any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall
not affect the validity of the remaining portions of this resolution.
Section 4. Effective Date. This resolution shall become effective immediately upon
adoption.
PASSED AND ADOPTED this ~day of January ,2018.
APPROVED: rRl-lf~ MAY R
COMMISSION \TOTE:
Mayor Stoddard:
Vice Mayor Welsh:
Commissioner Harris:
Commissioner Edmond:
Commissioner Liebman:
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4-1
Yea
Yea
Yea
Yea
Nay
,.-
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
TIllS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (interchangeably
refeJ;rW herein as "Agreement" and/or "General Release") is made and entered into as of the __
J~day of January, 2018 by and between ORLANDO MARTINEZ de CASTRO,
(hereinafter "Plaintiff'), and the CITY OF SOUTH ~ (hereinafter "Defendant"),
interchangeably referred herein individually as a "Party" and collectively as the "Parties".
WHEREAS, this Settlement Agreement and Mutual Release is entered into for the
purpose of settling any and all claims, controversies and disputes, made or not made, between the
aforesaid Parties arising out of, or in any way related to the lawsuit filed on March 13,2013, in
the Miami-Dade County Circuit Court, styled ORLANDO MARTINEZ DE CASTRO v. THE
CITY OF SOUTH MIAMI. Case No.: 13-09342-CA-15 ("The Lawsuit"), and the corresponding
appeal of The Lawsuit to the Third District Court of Appeals for the State of Florida in Case No.:
3D16-2421 (The "Appeal"), and stemming from Plaintiff's employment with the Defendant as
well as all other claims, other than those that are pending in other lawsuits filed by Plaintiff as of
January 5, 2018.
WHEREAS, the Defendant desires to minimize cost to the Ci1y from continued litigation
by amicably resolving all existing issues and disputes between the Parties.
NOW, THEREFORE, in order to amicably resolve all eXlstmg issues and
potential future" issues between the Parties, they have agreed to the terms and conditions
contained in this document.
1. Consideration. a. In consideration for Plaintiff taking no further action in The
Lawsuit or The Appeal, with the exception of dismissal of same, or any future action in any
lawsuit arising from the same facts and occurrences, and releasing any and all other claims that
Plaintiff may have against the Defendant as of January 5,2018, other than for those set forth on or
before January 5, 2018 in other pending lawsuits, and in consideration for Defendant withdrawing
its appellate motions for rehearing and agreeing to pay Plaintiff, by check, the sum of
$1,025,000.00 (ONE MILLION TWENTY-FIVE THOUSAND UNITED STATES DOLLARS
WITH NO CENTS) (the "settlement check") to be tendered no later than February 3, 2018, and in
accordance with subparagraph "b." below, the Defendant and Plaintiff agree to settle their
differences and release each other from this and certain other claims as described herein below
"and to execute this Settlement Agreement and Mutual Release;
b. Payment of the foregoing consideration shall be made by check issued by
Defendant and payable to the order of "FRANQUI TOTTEN, LLP Trust Account" It shall be
held for the use and benefit of the Plaintiff as well as the use and benefit of Plaintiff's trial and
appellate attorneys and to resolve their claims to reimbursement for legal services rendered-and
costs incurred in The Lawsuit and The Appeal.
2. No Further Action. The parties represent that no action has been taken by either of
them against the other since January 5, 2018 and that no further action shall be taken by either
party against the other for any claims that may have existed on or before January 5, "2018.
3. General Release of Claims. a. The Parties knowingly and voluntarily release and
forever discharge each other, as well as each other's current and fonner insurers, attorneys,
accountants, and agents, both individually and in their business capacities, and their employee
benefit plans and programs and their administrators and fiduciaries, and their current and
fonner employees, officers, directors, and agents thereof (hereafter collectively referred to as
"Releasees") of and from any and all claims that Parties have or may have, known or unknown,
at law or in equity, from the beginning of the world until the date of execution of this
Settlement Agreement and General Release by Releasors, including those that could have been
alleged and/or stem from the facts that arose in the case of Orlando Martinez de Castro v. City
of South Miami. Case No.: 13-09342-CA-15 which include, but which are not limited to, any
alleged violation of: unpaid wages under F.S. 448.08, breach of contract for the "Employment
Agreement", Plaintiff's attorneys' fees and costs, and any and all claims and/or allegations of
the unethical conduct of Plaintiff while Plaintiff was employed with Defendant, including but
not limited to any and all ethical violations described in COE Complaint Number C12-31
and/or Philip K. Stoddard's February 14, 2013 and February 25, 2013 sworn complaints of
alleged violations of the City of South Miami's Code of Ethics Ordinance, which Plaintiff
vehemently denies. The afore-mentioned notwithstanding the Parties acknowledge, understand
and agree that the claims released herein do NOT include those previously made in the pending
cases of: Orlando Martinez de Castro and Deana Martinez de Castro v Phillip K. Stoddard, filed
in the 11th Judicial Circuit in and for Miami-Dade County, Case NO.: 13-18246-CA-08; and/or
Orlando Martinez de Castro and Deana Martinez de Castro v the City of South Miami and Robert
Welsh, filed in the 11th Judicial Circuit in and for Miami-Dade County, Case NO.: 14-65956-
CA-13.
b. The Parties agree that upon delivery of the settlement check to the offices of
FRANQUI TOTTEN, LLP, located at Brickell City Tower, 80 S.W. 8th Street, Suite 2000,
Miami, FL 33130, or upon the settlement check being picked up from the City of South
Miami, which ever should occur first, it shall be deposited into the FRANQUI TOTTEN, LLP
trust account within two business day of receipt and upon the settlement check clearing
Plaintiff's coUnsel's Trust Account, all pending motions filed in The Lawsuit and The Appeal
are null and void and of no further effect, including, without limitation, Plaintiff's Verified
Motion to Tax Fees and Costs filed in the Circuit Court, the motion for appellate fees and any
motion for appellate costs, and Defendant's Motion for Rehearing, Motion for Rehearing on
Attorneys' Fees and Amended Motions for Rehearing filed in the Appellate Court. In the
event that the settlement check is not deposited within two business day of its delivery, then
within 15 days of delivery of the settlement check, all pending motions filed in The Lawsuit
and The Appeal shall be null and void and of no further effect, including, without limitation,
Plaintiff's Verified Motion to Tax Fees and Costs filed in the Circuit Court, the motion for
appellate fees and any motion for appellate costs, and Defendant's Motion for Rehearing,
Motion for Rehearing on Attorneys' Fees and Amended Motions for Rehearing filed in the
Appellate Court
c. Within 5 business days of the settlement check clearing Plaintiff's Trust
Account, the Plaintiff shall file with the Circuit Court a Stipulation for Dismissal with
Prejudice and a proposed Order on same and Defendant shall file a dismissal in the Appellate
Court action, withdrawing any pending motions and/or claims to attorney fees and costs. The
5 business days shall commence when a written notice is delivered to the City Attorney by
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email addressed to tpepe@southmiamifl.gov advising him that the check has cleared the trust
account of Plaintiff's attorney ..
4. Governing Law and Interpretation; Litigation Forum. This General Release shall
be governed, interpreted, and conformed in accordance with the laws of the State of Florida
without regard to its conflict of laws provision. Should any provision of this General Release be
declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified
in order to be enforceable, excluding the general release language, such provision shall
immediately become null and void, leaving the remainder of this Settlement Agreement and
Mutual Release in full force and effect. Any litigation arising from or in any way related to or to
enforce or declare rights or obligations under this General Release shall be brought exclusively
and mandatorily only in the courts of Miami-Dade County, Florida.
5. Amendment. This Settlement Agreement and General Release may not be modified,
altered, or changed except upon express written consent of the Parties wherein specific reference
is made to this Agreement.
6. Entire Agreement. This Settlement Agreement and Mutual Release sets forth all of
the terms and conditions agreed to by the Parties , and fully supersedes any prior agreements or
understandings between them, written or oral. The Parties to this Agreement acknowledge that
they have not relied on any oral or written representations, promises, or agreements of any kind
made to them by anyone in connection with their decision to accept and execute this Settlement
Agreement and General Release, except for those set forth in this Settlement Agreement and
Mutual Release.
7. Counterparts. This Settlement Agreement and General Release may be signed in
counterparts that together shall be deemed to comprise a single and complete Settlement
Agreement and General Release, and the Parties agree that a facsimile, photocopy, or scanned
image of this Settlement Agreement and General Release, including, without limitation, any
signature(s) or other marks thereon, shall be admissible in any judicial, administrative, or other
proceeding related to this Settlement Agreement and General Release with the same weight and
binding effect as an original.
8. Effective Date. This Agreement shall be effective as of January 5, 2018.
[SIGNATURE PAGES FOLLOW}
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The Plaintiff/Appellee, knowingly and voluntarily signs this Settlement Agreement
and Mutual Release, intending to be bound thereby, as of the date(s) set forth below:
Date: --=-+-J'--=~r-=~....:.&.O-' 2018,
The Defendant! Appellant, knowingly and voluntarily sign this General Release,
intending to be bound thereby, as of the date( s) set forth below:
ATTESTED: CITY OF SOUTH MIAMI
AGER
STEVEN ALEXANDER,
Date: ) . 2(,. Iv ,2018
nunc pro tunc January 5, 2018
and execution thereof:
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... , ~ ..