HomeMy WebLinkAbout2008-10-15 08-334 ORDERMan No. 92 3 Q
Date: October 15, 2008
Item/Subject: ORDER, Authorizing the Execution of a Settlement Agreement with Citizens
Communications Company and Third Parties
Responsible Department Legal
In November 2002, the Oty of Bangor filed suit against Cltizern Communications Company (Citizens) In
the United States District Court for the District W Maine alleging that Citizens conbibuted to pollution of
Me Penobscot River. In febmary 2007, the City Council approved a settlement agreement with Citizens.
The settlement agreement provided that the City assign any rights it has against third party defendants In
the lawsuit to Citizens and that Citizens could continue M pursue its claims against them. The settlement
agreement also prodded that any recovery from third parry defendants will be divided one-third to she
City and twathirds to Citizens atter reimbursement ro Citizens of as expenses to reach such settlement.
This Order will autinrize the execution of a settlement agreement with Cltizenb Communications
Company and four third pant defendants, Barrett Paving, Inc., Honeywell International, Inc., Sedate
Colas, Inc. and Beazer East, Inc. for a total of $3.150 million.
DepaNnent Head
Managers Comments: �� .�nn
Recommend approval. F -&Y:0 ".(k&nWetlArc{Y �L
City Manager
Assooatetl Jp-formation:
Legal
/ �y 5odi�r
Introduce0 for
i Passage
_ Releg
Referral
l
V� AwipedtoCoUncilw Stave 8ctobex 15, 208
CITY OF BANGOR
(TIRE.) ORDER, Authorizing the Execution of a Settlement Agreement with Chizens
Communications Company and Third Parties
WHEREAS, in November 2002, the City of Bangor fled suit against Citizens
Communications Company in the United States District Court for the District
of Maine (styled City of Bangor, Maine v. Citizens Communications
Company, et al., Civil Action 02 -183 -B -S) alleging that Citizens contributed
to pollution of the Penobscot River; and
WHEREAS, in February 2007, the City Council of the City of Bangor approved a
settlement agreement with Citizens Communications Company; and
WHEREAS, the settlement agreemem provided that the City of Bangor assign any rights
It has against Third Party Defendants in the lawsuit to Citizens and that
Citizens could continue to pursue its claims against them; and
WHEREAS, the settlement agreement provided that any recovery from third party
defendants shall, after reimbursement of Citizens' expenses to reach a
settlement, be divided two-thirds to Citizens and one-third to the City of
Bangor; and -
WHEREAS, Citizens Communications Company has reached a negotiated settlement
with four of the third party defendants, namely Barrett Paving Materials,
Inc., Honeywell International, Inc., Societe Colas, S.A., and Beazer East,
Inc. for a total of $3.150 million.
NOW, THEREFORE, BE IT ORDERED BY THE CIT' COUNCIL OF THE Cr1Y OF BANGOR
THAT
the City Manager is hereby authorized to execute a settlement agreement with Citizens
Communications Company and third parry defendants Barrett Paving, Inc, Honeywell
International, Inc., Societe Colas, Inc. and Beazer East, Inc, in the matter of City of
Bangor v. Citizens Communications Company, et al., Civil Action 02 -183 -B -S (D.C. Me),
said settlement agreement to be in a final form as approved by the City Solicitor or
Assistant City Solicitor.
M CTTI WMIL
October 15, 2008
Notion Node and Seconded
for P sage
Puen
CITY ¢egc
(IIfLPJ••erof a
SettlenentUreueotrich Cicir.
r ,y , mnv��.utlne
N,igmd to Couneilnr.._l.
VV • ��