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HomeMy WebLinkAbout16961 1 RESOLUTION NO. 16,961 2 3 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A 4 SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS IN THE 5 MATTER OF DAVID MATTOX, ET AL. V. CITY OF LITTLE ROCK, ET 6 AL.,PULASKI COUNTY CIRCUIT COURT CASE NO.60CV 21-5316;AND 7 FOR OTHER PURPOSES. 8 9 WHEREAS, David Mattox, John Michael Trent, Rusty Rothwell, and Christopher McCauley 10 (collectively, "Plaintiffs") filed Pulaski County Circuit Court Case No. 60CV-21-5316, asserting 11 employment-related claims against the City of Little Rock and certain individual defendants; and, 12 WHEREAS,the parties participated in court-ordered mediation on October 31, 2025, and December 13 5, 2025,resulting in a mediation memorandum signed December 5, 2025; and, 14 WHEREAS,the parties have negotiated a Settlement Agreement and Release of All Claims to resolve 15 all claims in the litigation,attached hereto as Exhibit A; and, 16 WHEREAS, the Settlement Agreement provides for total consideration of Four Hundred Fifty 17 Thousand Dollars($450,000.00)to be distributed among the Plaintiffs and their counsel as specified in the 18 Agreement;and, 19 WHEREAS,the Settlement Agreement includes a comprehensive release of all claims by the Plaintiffs 20 against the City of Little Rock and the individual defendants; and, 21 WHEREAS,the Settlement Agreement requires Board of Directors approval prior to execution; and, 22 WHEREAS, the City Attorney's Office, in consultation with outside counsel Friday Eldredge and 23 Clark, P.A.,recommends approval of the Settlement Agreement as being in the best interests of the City of 24 Little Rock. 25 NOW,THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 26 OF LITTLE ROCK,ARKANSAS; 27 Section 1. The Board of Directors hereby authorizes and directs the Mayor to execute the Settlement 28 Agreement and Release of All Claims in the matter of David Mattox,John Michael Trent, Rusty Rothwell, 29 and Christopher McCauley v.City of Little Rock,Keith Humphrey,Crystal Young-Haskins,Brittney Gunn, 30 James Sloan, and Frank Scott, Jr., Pulaski County Circuit Court Case No. 60CV 21-5316, attached hereto 31 as Exhibit A and incorporated herein by reference. 32 Section 2.The City Clerk is authorized and directed to attest to the Mayor's signature on the Settlement 33 Agreement. [Page 1 of 111 1 Section 3.The Director of Finance is authorized and directed to issue payment in accordance with the 2 terms of the Settlement Agreement within two(2)business days following the expiration of the revocation 3 period, subject to receipt of executed settlement documents and appropriate tax documentation. The City's 4 payment obligation shall be deemed satisfied upon issuance and delivery of checks as specified herein, 5 notwithstanding any bank hold periods that may delay availability of funds. 6 Section 4. The City Attorney is authorized and directed to take all actions necessary to implement the 7 terms of the Settlement Agreement,including but not limited to filing appropriate dismissal documents with 8 the Pulaski County Circuit Court upon expiration of the revocation period. 9 Section 5. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 10 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 11 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 12 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 13 resolution. 14 Section 6.Repealer.All laws, ordinances, resolutions, or parts of the same,that are inconsistent with 15 the provisions of this resolution,are hereby repealed to the extent of such inconsistency. 16 ADOPTED: February 3,2026 17 ATTEST: APPROVED: 18 20 Allison Segars,Ci k Frank Scott,Jr., r 21 APPROVED AS TO LEGAL FORM: 22 ,A 23 24 Thomas M. Carpenter,City A rney 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // [Page 2 of Ill EXHIBIT A SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS THIS SETI'LEMENT AGREEMENT AND RELEASE OF CLAIMS("Agreement")is made by and between David Mattox, John Michael Trent, Rusty Rothwell, and Christopher McCauley (collectively, "Plaintiffs") and each of their respective heirs, successors,assigns,executors,administrators,agents or representatives of any kind,shall hereinafter be referred to,jointly and individually,separately and collectively,(jointly and individually referred to as "Separate Plaintiffs") and the City of Little Rock, Keith Humphrey, Crystal Young-Haskins, Brittney Gunn, James Sloan, and Frank Scott, .Jr. (collectively,"Defendants"),individually,and each of their respective servants,attorneys, principals,agents,employees, deputies, representatives,elected officials, insurers,self- insurers, risk management funds, predecessors, heirs, successors, assigns, executors, administrators,affiliates,divisions,branches,departments(jointly and individually to as "Separate Defendants"). STATEMENT OF FACTS A. Plaintiffs filed Pulaski County Circuit Court Case No. 6oCV-21-5316, asserting employment-related claims against Defendants. The Parties participated in court-ordered mediation on October 31, 2025 and December 5, 2025,with a mediation memorandum signed December 5,2025. B. The Separate Defendants deny the allegations in the Lawsuits. C. Because the Parties desire to settle fully, finally, and forever any and all issues that may exist between them,including but not limited to,any claims,disputes,or other issues arising out of the Lawsuit, solely to avoid the cost and uncertainty of litigation,the Parties have entered into this Agreement on the terms set forth below. Therefore, in consideration of the statements and mutual promises contained m this Agreement,the Parties agree as follows: 1. Consideration and Payment. Subject to the approval of the Board of Directors of the City of Little Rock,as consideration for the Agreement,the City of Little Rock on behalf of itself and all defendants will pay to the Separate Plaintiffs payment in the total amount of Four Hundred Fifty Thousand Dollars and 00/10o Dollars ($450,000.00),for full and final settlement,to be distributed and made payable to the Separate Plaintiffs and their attorneys as follows: a. A check in the amount of Eighty-One Thousand Two Hundred Fifty Dollars (S81,250.00) payable to John Trent for alleged non-wage damages as settlement in full of all claims arising from any injuries in the instant case for which a corresponding Form io99 will be issued. b. A check in the amount of Eighty-One Thousand Two Hundred Fifty Dollars ($81,250.00) payable to David Mattox for alleged non-wage damages as [Page 3 of III settlement in full of any and all claims arising from any injuries in the instant case for which a corresponding Form to99 will be issued. c. A check in the amount of One Hundred Ten Thousand Dollars (S11o,00o.00) to Rusty Rothwell for alleged non-wage damages as settlement in full of all claims arising from any injuries in the instant case for which a corresponding Form ro99 will be issued. d. A check in the amount of One Hundred Ten Thousand Dollars (Srro,000.00)to Christopher McCauley for alleged non-wage damages as settlement in full of all claims arising from any injuries in the instant case for which a corresponding Form ro99 will be issued e. A check in the amount of Sixty-Seven Thousand Five Hundred Dollars ($67,5o0.00)to Robert A.Newcomb P.A.for attorneys'fees and expenses for which a corresponding Form ro99 will be issued Payment will be issued within 14 days following the expiration of the Revocation Period. Separate Plaintiffs agree that they have received all compensation to which they are entitled,and that they are not entitled to any additional consideration,compensation, or benefits from Separate Defendants,except as expressly set forth in this Agreement. 2. Release. In exchange for the above consideration,the receipt,sufficiency and adequacy of which is hereby expressly acknowledged,Separate Plaintiffs do hereby irrevocably and unconditionally release, acquit, remise, and forever discharge Separate Defendants and/or any entity or person acting by,through,under or in concert with any of them,and/or any person or entity acting directly or indirectly in the interest of and/or acting with or on behalf of any of them personally,officially or in any capacity whatsoever, from any and all rights,promises,obligations,liens,claims,demands,liabilities,actions and causes of actions of whatever kind and character,in law or equity,in contract,tort or other, both known and unknown, disclosed and undisclosed, actual and consequential, specific and general,however denominated,including but not limited to those arising out of or in any way connected with the employment of the Separate Plaintiffs with the Separate Defendants,for any past or present claim, relief or cause of action, no matter how denominated, for front or back pay, income from any source, declaratory or injunctive relief, compensatory, liquidated or punitive damages, wages, money, remuneration,or thing of value whatsoever,and/or arising under,relating to or covered by any federal,state or local ordinance,law,statute,act,custom,usage,rule or regulation and including,without limitation,any claim or cause of action which was,or could have been stated in the Lawsuits. Separate Plaintiffs specifically release any and all claims of any kind whatsoever that they have or may have had against Separate Defendants as of the Effective Date of this Agreement under,but not limited to,the following: [Page 4ofItl a. Title VII of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2o0oe, et seq.); b. the Age Discrimination in Employment Act of 1967,as amended,(29 U.S.C. § 621 et seq.); c. the Civil Rights Acts of 1866, 1871, 1964 and 1991; d. the Americans with Disabilities Act of 1990,as amended(42 U.S.C.§12101 et seq.); e. the Rehabilitation Act of 1973,as amended(29 U.S.C.§701 et seq.); f. the Equal Pay Act of 1963,as amended(29 U.S.C.§2o6(d),et seq.) g. the Genetic Information Nondiscrimination Act of 2008,(42 USC §2000ff et seq.); h. the Arkansas Civil Rights Act,as amended(A.C.A§16-123-101 et seq.); i. the Uniform Contribution Among Tortfeasors Act,as amended(A.C.A. § 16- 61-201 et seq.); j. the Fair Credit Reporting Act,as amended(15 U.S.C.§ 1681 et seq.); k. the Occupational Health and Safety Act of 197o,as amended(29 U.S.C. §651 et seq.) or any applicable state safety and health statutes, regulations, or common law; 1. the Family and Medical Leave Act,as amended(29 U.S.C.§2601,et seq.); m. the Arkansas Minimum Wage Act,as amended(A.C.A.§11-4-201,et seq.); n. the Fair Labor Standards Act,as amended(29 U.S.C.§201 et seq.); o. any and all claims under the laws of any state, county, municipality or other governmental subdivision of the United States or any state,including but not limited to,the State of Arkansas;and p. any and all other relevant Federal, State, local laws, common laws, tort, contract,or statutory claims,and/or any claims for attorneys'fees and costs. The above enumeration of specific rights, claims, and causes of action being released should not be construed to limit the general scope of the Release in this Section. It is the express intent of the Separate Plaintiffs to enter this full and final settlement and compromise of any and all claims against Separate Defendants,whatsoever,arising out [Page 5 of 111 of events occurring up to and including the date of execution of this Release. It is understood, agreed, and stipulated between the parties hereto that the consideration described herein is in complete and full accord,satisfaction and discharge of any and all doubtful or disputed claims,whatsoever.The Separate Plaintiffs stipulate and agree not to initiate,join in,continue and/or institute any legal proceedings or process based on the within described claims or causes of action before any administrative,judicial, or any other forum against the Separate Defendants,whatsoever. Separate Plaintiffs further agree not to file nor permit to be filed on their behalf, any claim,charge or cause of action,will not permit them to be a member of any potential or existing class or representative action seeking relief for any matter raised herein, and/or will not counsel,participate,advance or assist in the prosecution of such claims, charge or cause of action against the Separate Defendants for any claim or cause of action raised herein,unless ordered to do so by a Court of competent jurisdiction. 3. No Addition of Liability. Separate Defendants do not,by virtue of this Agreement, admit liability to anyone or any entity as a result of any incident, act, or omission described in or cognizable by the aforementioned claims or causes of action. This Agreement is entered into for the sole purpose of settlement and compromise. It is stipulated and agreed that this Agreement and the negotiations of the parties resulting in this Agreement shall not constitute admissible evidence of any matter for any purpose whatsoever,other than for the sole purpose of a claim of a breach of this Agreement. This Agreement is not an admission by Separate Defendants of any unlawful acts against Separate Plaintiffs or any other person whatsoever.Separate Defendants specifically deny any violation of any act, statute, or law whatsoever. Separate Defendants deny and disclaim any liability to Separate Plaintiffs or any other person whatsoever. 4. Warranties and Representations. Separate Plaintiffs warrant and represent that: a. Except for the Lawsuits, they have no lawsuits, charges, administrative proceedings, or other claims of any nature pending against Separate Defendants, in any state or federal court or before any local, state, or federal agency or other administrative or adjudicative body,and Separate Plaintiffs have not filed, lodged,created,or caused to be filed,lodged,or created,any complaints with any organizations; b. They are competent and entitled to give this complete release and discharge c. There are no prior assignments or transfers of any portion of or interest in any of Separate Plaintiffs claims or causes of action; d. There are no liens, including Medicare or Medicaid liens,or any other or claims of lien or assignments in law or equity or otherwise of or against the claims or causes of action of the Separate Plaintiffs herein;and A [Page 6of111 e. Separate Plaintiffs acknowledge and agree that in exchange for entering into this Agreement, they are receiving consideration, i.e., the payment described in this Agreement, which is something that they would not otherwise be entitled to receive. 5. Indemnification. The Separate Plaintiffs will indemnify and save harmless the Separate Defendants herein from any loss, claim, expense, attorney fees, costs,demand,or cause of action of any kind or character through the assertion by any person of a claim or claims connected with the subject matter of this Agreement caused, counseled,initiated,aided,assisted or advanced by the Separate Plaintiffs,and from any loss incurred directly or indirectly by reason of a falsity or misrepresentation herein by the Separate Plaintiffs. 6. Severability. Should any part of this Settlement Agreement and Release be declared or be determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term, or provision shall be deemed not to be a part of this Settlement Agreement and Release. �. No Tax Withholding and Indemnification.It is agreed and stipulated between the parties hereto that no applicable federal and state taxes and F.I.C.A. contributions have been withheld or paid from the non-wage payments to be paid to Separate Plaintiffs and their attorneys pursuant to the terms set forth herein. The Separate Plaintiffs and Separate Plaintiffs' attorney shall each file all required federal, state,and local income tax returns and related filings in a manner fully consistent with the provisions contained in this Agreement. Separate Plaintiffs and Separate Plaintiffs' attorney agree to pay any additional taxes that may become due on the amount paid by the Separate Defendants in consideration for the foregoing Release, and to hold the Separate Defendants harmless from all claims for any taxes thereon. 8. Entire Agreement. This Agreement contains the full, entire, final, and exclusive agreement,understanding and stipulation between the Parties hereto,none of whom admit allegations,defenses or other assertions made in any pleading filed in the aforementioned lawsuit. It fully and finally supersedes all prior negotiations,promises, agreements, or understandings between the Parties hereto pertaining to the subject matter hereof.The Parties have had full possession of all facts with regard to the claims or rights of each other,and full aceeGs to respective counsel.Except as stated herein,the terms of this Agreement are executed without reliance upon any representation by the Separate Defendants or any of its representatives. 9. Choice of Law;Forum.The terms of this Agreement are contractual,not a mere recital,and may be enforced in court.This Agreement is executed in the State of Arkansas and in all respects shall be interpreted,enforced,and governed under the laws of Arkansas. The parties hereby submit to the exclusive jurisdiction of the federal and state courts in the State of Arkansas for any suit or proceeding arising out of or relating to this Agreement. [Page 7 of 11] lo. Dismissal of Lawsuit.Upon the expiration of the Revocation Period,the Separate Plaintiffs shall take the necessary steps to obtain an order from the Court to dismiss with prejudice the Lawsuits. 11. Counterparts; Electronic Copy. The parties agree that a signed electronic copy of this Agreement is just as valid as an original signed copy of this Agreement. This Agreement may be executed by the parties in separate counterparts, which taken together constitute one agreement.This Agreement may be executed more than once so that each party may hold a duplicate original. 12. Medicare/Medicaid Beneficiary. Separate Plaintiffs represent and warrant that they are not a Medicare or Medicaid beneficiary. Nevertheless, in reaching this settlement, the parties have considered the interest of Medicaid, Medicare and the federal government and have made a reasonable, good faith effort to comply with the Medicare Secondary Payer Act (42 U.S.C. § 1395Y (b)) as amended and the relevant regulations contained in 42 C.F.R. § 4ii ("MSP"). It has been determined that an allocation for future Medicare and Medicaid-covered expenses are not required as Separate Plaintiffs'claims are completely denied,they have not asserted claims for injury- related medical expenses,and the Separate Defendants have not accepted liability for any such claims.Moreover,the Separate Plaintiffs certify that there are no future Medicare or Medicaid-covered treatments or medications prescribed or reasonably expected related to the alleged injuries that serve as the basis of the Lawsuit. The Separate Plaintiffs understand that the Separate Defendants have relied upon their representations in their decision to enter into this settlement agreement. The Separate Plaintiffs agree to indemnify and hold harmless the Released Parties for any claim or action filed by the federal government pursuant to the MSP and for any loss of Medicare or Social Security benefits experienced by the undersigned because of this settlement. The Separate Plaintiffs also hereby agree to indemnify and hold harmless the Separate Defendants from any and all claims,subrogation claims,demands,actions,causes of action,or liens that may be made by any person,governmental entity, business entity, firm, or corporation (including but not limited to Medicare and/or Medicaid, Social Security, any Medicare Advantage Plan,and any Medicare Part C or D plan)for payments made to or on behalf of the undersigned for injuries or damages arising out of,or claimed to arise out of or by reason of, the incident that formed the basis of the Lawsuit. The Separate Plaintiffs further agree to hold the Separate Defendants harmless and indemnify them from any claim, lien,or cause of action brought by any entity pursuant to the MSP related to the incident that formed the basis of the Lawsuits or this settlement.It is not the intention of any party to this agreement to shift responsibility of future medical benefits to the federal government. It is the parties'intention to comply with the MSP.The Separate Plaintiffs further agree to waive all potential/future claims against the Separate Defendants arising out of the Medicare Secondary Payer Statute in any state,federal or local venue or any venue otherwise. 13. COMPLIANCE WITH THE ADF.A AND OLDER WORKERS BENEFIT PROTECTION ACT. Separate Plaintiffs being forty (40) years of age or older,are advised of,and knowingly and voluntarily acknowledges the following: 4 !Page 8 of 111 a. Twenty-One Day Consideration Period.Separate Plaintiffs shall have up to twenty-one(21)days to consider and accept the terms of this Agreement and sign this Agreement.The terms and provisions of this Agreement are null and void if this Agreement is not signed and returned to Separate Defendants within the twenty-one(21)day period.Separate Plaintiffs may voluntarily sign the Agreement prior to the conclusion of the twenty-one (21)day period. b. Release of Age Discrimination in Employment Act Claims. By signing this Agreement, Separate Plaintiffs waive any claims that they have or might have against Employer under the Age Discrimination in Employment Act ("ADEA")that accrued prior to the date of the execution of this Agreement. Separate Plaintiffs acknowledge and agree that they are knowingly and voluntarily waiving and releasing any rights or claims that they may have under the ADEA or related state law. They also voluntarily acknowledges that (i) the consideration given for the waivers and releases in this Agreement is in addition to anything of value to which they were already entitled;(ii)this waiver and release does not apply to any rights or claims that may arise after the date that they execute this Agreement; (iii) they have been advised that they have the right to consult with an attorney of their choosing;(iv)this Agreement is written in a manner calculated to be understood by Separate Plaintiffs and they have read and fully understand the contents of this Agreement; (v) that no representations other than those contained in this Agreement have been made to induce or influence the execution of the Agreement; (vi) that the Agreement is entered into freely and voluntarily; and (vii) this Agreement has been individually negotiated and is not part of a group exit or incentive program. c. Revocation period. Separate Plaintiffs shall have seven (7)calendar days from the date that they sign this Agreement to revoke the Agreement by notifying Separate Defendants counsel in writing prior to the expiration of the seven (7) day period. This Agreement shall not become effective or enforceable until the revocation period has expired for each of the Separate Plaintiffs ("Effective Date"). Separate Plaintiffs agree that any modification, material or otherwise, made to this Agreement does not restart or affect in any manner the original twenty-one(21)calendar day consideration period. IN WITNESS WHEREOF,each of the Parties hereto has executed this Agreement on the date set forth opposite his name below. 7 'Page 9 of 11l SEPARATE PLAINTIFFS: David Mattox Date John Trent Date Rusty Rothwell Date Christopher McCauley Date Approved: Robert A.Newcomb,Attorney Date Robert A.Newcomb,PA Counsel for the Plaintiffs g ]Page 10 of 11] SEPARATE DEFENDANTS: CITY OF LITTLE ROCK By: Mayor Frank Scott Date By: Allison Segars,City Clerk Date Approved: Thomas M.Carpenter,City Attorney Date Keith Humphrey Date Crystal Young-Haskins Date James Sloan Date Britanny Gunn Date Approved: Khayyam M.Eddings,Attorney Date Friday Eldredge and Clark,P.A. Counsel for the Defendants a [Page 11 of 11]