HomeMy WebLinkAbout69-002P~ESOLUTION 69-2 OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA, CALIFORNIA, ADOPTING, RATIFYING
AND CONFIRMING MEMORANDUM OF UNDERSTANDING FOR
SETTLEMENT OF WEST COAST PIPE CASES BETWEEN ALL
PLAINTIFFS AND AMERICAN PIPE AND CONSTRUCTION
COMPANY AND AUTHORIZING THE CITY ATTORNEY TO
SIGN THE RELEASE OF CLAIMS
W~EREAS, the CITY OF SANTA ANA, CALIFORNIA, hereafter called
entity, has previously authorized the Attorney General of the State
of California to institute on its behalf one or more law suits
under the Federal Antitrust Laws which law suits were in fact filed
against defendants United States Steel Corporation, Smith-Scott
Company, Inc., Kaiser Steel Corporation, United States Industries,
Martin-Marietta Corporation, United Concrete Pipe Corporation, and
American Pipe and Construction Co; and
WI4_EREAS, pursuant to court orders, similar actions brought
by the Federal Government and other plaintiffs in the States of
California, Oregon, Washington and Hawaii were all coordinated
before a single Federal District Court Judge; and
WHEREAS, in 1967 the actions against all defendants, with the
exception of American Pipe and Construction Co., were settled and
compromised on a lump sum basis, the proceeds being distributed
amongst the various plaintiffs pursuant to an agreement, all of which
was duly approved and ratified by entity and approved by the Court;
and
WHEREAS, a condition of the acceptance of said partial settle-
ment by certain plaintiffs not represented by the Attorney General
of the State of California was an agreement by and between the
plaintiffs concerning the conduct of the litigation still remaining
against, and the allocation among plaintiffs of the expected recovery
from defendant American. This agreement known to plaintiffs as the
Western Associated Pipe Plaintiffs Organization Compact provides,
among other things, for (a) common sharing of expenses; (b) the
retention of a lead counsel to prosecute and try all cases against
the remaining defendant American Pipe and Construction Co. under the
supervision of an Executive Committee of the plaintiffs party to the
compact; and (c) the distribution of any recovery against American
to all plaintiffs proportionately to their verified transactions
with American over the fourteen year period 1950 through 1963; and
WHEREAS, on July 14, 1967, the Attorney General of the State
of California entered into such Compact, hereinafter called WAPPO,
on behalf of entity. Since then, the agreements embodied in the
WAPPO Compact have been and are being carried out with the Attorney
General of California as chairman of its Executive Committee; and
WHEREAS, Plaintiffs' counsel, acting through their Executive
Coramittee and lead counsel, have now negotiated and reached agreement
on the terms of a settlement and compromise of the litigation with
defendant American Pipe and Construction Co., the terms of which are
more fully set out in the attached document entitled "MEMORANDUM OF
UNDERSTANDING FOR SETTleMENT OF WEST COAST PIPE CASES BETWEEN ALL
PLAINTIFFS AND AMERICAN PIPE AND CONSTRUCTION COMPANY"; and
WHEREAS, Such Memorandum of Understanding provides for payment
by American to all plaintiffs of the lump sum amount of eight million
five hundred thousand dollars ($8,500,000) over a period of seven
years with interest;
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NOW, THEREFORE, BE IT RESOLVED: That the MEMORANDUM OF UNDER-
STANDING FOR SETTLEMENT OF WEST OCAST PIPE CASES BETWEEN ALL PLAIN-
TIFFS AND AMERICAN PIPE AND CONSTRUCTION COMPANY and the Western
Associated Pipe Plaintiffs Organization Compact, copies of which are
attached hereto as Exhibits "I" and "III", respectively, are hereby
adopted, ratified and confirmed.
BE IT FURTHER RESOLVED: That the CITY ATTORNEY of entity is
hereby authorized to sign the release of claims against the defendant
and attached hereto as Exhibit "II" as the official act of entity.
BE IT FURTHER RESOLVED: That the Attorney General of the
State of California is hereby authorized by entity to enter into a
stipulation dismissing this litigation with prejudice and without
costs and to take any and all other action which may be required
of this entity in order to effectuate and consummate the compromise
and settlement provided for in said Memorandum of Understanding
and distribute any monies received from defendant American Pipe and
Construction Co. in accordance with said WAPPO Compact.
PASSED AND ADOPTED by the City Council of the City of Santa
Ana at its regular meeting held on the 6th day of January, 1969.
ATTEST:
CLERK OF THE COUNCIL
STATE OF CALIFORNIA)
COUNTY OF ORANGE )
CITY OF SANTA ANA )
SS
I, DORIS M. BROWN, do hereby certify that I am the Clerk of
the Council of the city of Santa Ana; that the foregoing Resolution
was introduced to said Council at its regular meeting held on the
6th day of January, 1969, and was at said meeting passed and adopted
by the following vote, to wit:
AYES,
NOES,
COUNCILMEN: Herrin~ B~ooks, Carlson, Griset, Markel,
Thurman, McMichael
COUNCILMEN: None
ABSENT,
COUNCILMEN: None
CLERK OF THE COUNCIL
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