HomeMy WebLinkAboutAgenda Statement 1984/01/24 Item 6 COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 1/24/84
FEM TITLE: Resolution //S3 Approving Proposed Settlement in the
Case of County of San Diego v. El Capitan Oil Company
JBMITTED BY: City Attorney/`-L Vote: Yes No x )
The City of Chula Vista was required to pay $667.86 more for the
procurement of oil due to a default by El Capitan Oil. The City
Attorney recommends settlement of the case for $297. 68.
RECOMMENDATION: Adopt the Resolution approving the proposed
settlement of $297. 68 due to the insolvency
of El Capitan Oil Company, Inc.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
We have been requested by the County of San Diego through the
office of County Counsel to approve a proposed settlement of the
above-entitled litigaton in which the County of San Diego
represented the City of Chula Vista and other public entities to
recover excess costs incurred to procure diesel fuel between
February 14 and July 14 of 1979 from El Capitan Oil Company, Inc.
The proposed settlement would result in a recovery of $297.68.
The original claim was $667.86.
County Counsel indicates that the settlement of the claim of
$45, 494. 34 in the amount of $25, 000 is reasonable due to the
insolvency of El Capitan Oil Company, Inc. In addition, County
Counsel has estimated that the cost of a trial would be approxi-
mately $15, 000. The attorney ' s fees to date are $4, 750.
County Counsel has indicated that the settlement offer must be
with all the public entitites involved in the suit, therefore, we
recommend that the City of Chula Vista accept the proposed
settlement of $297.68.
FISCAL IMPACT: N/A
7 $
orm A-113 (Rev. 11/79)