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WHEREAS, the City is aware that Defendants have evicted and/or removed all of the <br /> former tenants of the Property, largely because of allegations set forth in the Action; and <br /> WHEREAS, Plaintiff and Defendants (collectively, the "Parties"), desire to settle fully <br /> and finally all differences between them, including, but in no way limited to, those differences <br /> described above. <br /> NOW, THEREFORE, in consideration of the mutual covenants and promises herein <br /> contained and other good and valuable consideration, receipt of which is hereby acknowledged, <br /> and to avoid unnecessary litigation, it is hereby agreed by and between the Parties as follows: <br /> 1. The above-stated Recitals are expressly made a part of this Agreement and each <br /> Party represents and acknowledges that the Recitals are true and correct. <br /> 2. This Agreement and compliance with this Agreement shall not be construed as an <br /> admission by Defendants of any liability whatsoever, or as an admission by Defendants of any <br /> violation of the rights of Plaintiffs or any person,violation of any order,law,statute,duty,or contract <br /> whatsoever against Plaintiffs or any person. Defendants specifically disclaim any liability to <br /> Plaintiffs or any other person for any alleged violation of the rights of Plaintiffs or any person, or <br /> for any alleged violation of any order, law, statute, duty, or contract on the part of any employees <br /> or agents of Defendants. Likewise,this Agreement and compliance with this Agreement shall not <br /> be construed as an admission by Plaintiffs of any liability,misconduct,or wrongdoing whatsoever. <br /> 3. Each party will exchange a fully signed executed copy or original of this <br /> Agreement. <br /> 4. Upon receipt of the fully signed document set forth in paragraph (3), above, <br /> Defendants will pay One Thousand Five IIundred Dollars($1,500.00)to"THE CITY OF SANTA <br /> ANA" by check. This amount represents a full and complete settlement of Plaintiffs' claims far all <br /> damages alleged in the Action. The City shall waive any other fines,penalties,costs and attorneys'fees <br /> related to all violations issued by the City in connection with the Property prior to the date of this <br /> Agreement,whether to Defendants or to any tenant on the Property. <br /> 5. Within ten(10)business days of receipt of the payment set forth in paragraph(4),above, <br /> the City shall (a) file a Request for Dismissal of the Action without prejudice with the Court, and (b) <br /> withdraw its Las Pendens recorded with the Orange County Clerk-Recorder related to the Action. <br /> Nothing in that Request for Dismissal shall I imit the terms of this Agreement. Copies ofthe filed Request <br /> for Dismissal and the documents withdrawing the Lis Pendens shall be forthwith delivered by the City <br /> to the Defendants. <br /> 6. 3-Sided Structure. The City retains the right to issue a violation related to <br /> continuing concerns with the 3-Sided Structure. Attached hereto as Exhibit `B" are a proposed <br /> Notice of Violation and a related Notice of Substandard Building which the City may issue to <br /> Defendants and record in connection with the 3-Sided Structure after the City has taken the steps <br /> set forth in paragraph (5) above. <br /> Page 2 of 5 <br />