HomeMy WebLinkAbout1991-07-22 91-300 ORDERV
Cate 7-22-91
Item No. 91 -300
Item/Subject: Authorizing Asst. City Solicitor to Accept Settlement Offs
City of Banger v. Hefflefingerr, Inc.
(Thrifty Rent -a -Car)
Responsible Departments Legal
Commentary:
See attached.
xr ease
Manager's Comments:
City Mnxaus,
Associated! Information:
Budget Approval
Fixa m Demeter
Legal Approval:
Asst. Our Sir.. sae
Introduced Fos
Passage
First Reading Page _of—
❑Referral '
Aeeipmd to Cooncaor coven 91-300
CITY OF BANGOR
(TITLE) @ibex Authorizing Asst. City Solicitor to Accept ,.
Settlement Offer - City of Bangor vs. Hefflefinger, Inc.
(Thrifty Hent-a-Car)
By he Qty CeamH of Qty ofHaayer'
ORDERED,
THAT the Asst. City Solicitor is hereby authorized to accept
a settlement offer in the amount of $13,B74.91 in the City of
Bangor's pending suit against Hefflefinger, Inc. for back rental
payments owed by. Hefflefinger, Inc. to Bangor International
Airport, and to execute necessary releases in connection therewith.
In City Council July 22.1991
Passed
C ty Clex! w-
91-300
ORDER
Title,
Authorizing Aee0. City Solicitor to
Accept Settlement offer - City of
Bangor VS Hefflefinger Inc.
................. jar .................
IDr1Ety Hent a Cer
Aa ipied to .
......................................
Councilman
Authorising Asst. City Solicitor to Accept Settlement
/tUtn!{tty of Bangor vs. Refflefinger, Inc. (Thrifty Rent -a -Car)
Responsible Department: Legal
Commentary
In ,lune, 1990, the City filed suit in the Penobscot County Superior
Court (Civil Action, 90-5) against Hefflefinger, Inc. for back
rents awed on account of Hefflefinger's lease of parking areas and
terminal counter space at Bangor International Airport. Heffle-
finger occupied the previews under a written Lease with BIA through -
December, 1981. After expiration of its Lease, Hefflefinger
continued to occupy the premises as a hold-
over tenant until May, 1990, when Hefflefinger agreed to quit the
premises due to nonpayment of rent.
The City's total claim for unpaid rents due under the Lease and
during the hold -over period is $60,042.30. On review of -Airport
records subsequent to filing suit, it appears the total amount Of
the City's claim should be adjusted downward to $56,051.35. Of
this amount, $42,210.22 represents unpaid "percentage" rents
calculated in accordance with the parties' written Lease for the
period of Refflefinger's hold -over tenancy, 1988-90. Hefflefinger
contests its liability for this amount, asserting that as a hold-
over tenant, it owed only the "basic rent" specified in the
original Lease, i.e., $10595.00 per month, which it has paid.
Hefflefinger does not contest the balance of the city's claim,
which it calculates to be $13,814.91"(I calculate $13,181.13), and
has offered to settle on this basis. The $13,814.91 represents
unpaid "percentage" rents for 1982
Hefflefinger is currently in financial difficulties, which my make
any judgment in the full amount of the City's claim uncollectible.
In addition, the parties' failure to expressly extend their written
Lease raises the possibility that the City would not recover the
disputed percentage rents in a contested action. Accordingly, I
recommend settlement on the basis of Hefflefinger's $13,814.91
offer.
Item No.
Page of_
Date S-ppngt aiun Item No.
Item/Subject: Com, nut lying i1e PSSistant City Solicitct to tasks isctiort fu
eettba a 1 pl action in City of Barriscr vs. HefflefDagIer Lc.
Responsible Department lel
Commentary:
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godating , Hus item aay be tealy for full 6cmcil actien. it alpaaxs can Hee agars a
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nePorc, �ctman '
Manager's Comments:
cityMm oyer
Associated Information:
Budget Approval
no anirc
Legal Approval:
city s,ii'a"
Introduced For
E3Passage
El First Reading Page _ of
❑Referral