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HomeMy WebLinkAboutReso - CC - 002-1969I RESOLUTION NO. 2_69 2 3 PREAMBLE: 4 1. CITY OF BURLINGAME hereafter 5 called entity, has previously authorized the Attorney 6 General of the State of California to institute on its 7. behalf one or, more law suits under the Federal Antitrust 8 Laws which law suits were in fact filed against defendants 9 United States Steel Corporation, Smith -Scott Company, Inc., 10 Kaiser Steel Corporation, United States Industries, Martin- 11 Marietta Corporation, United Concrete Pipe Corporation, 12 and American Pipe and Construction Co. 13 2. Pursuant to court orders, similar actions 14 brought by the Federal Government and other plaintiffs in 15 the States of California, Oregon, Washington and Hawaii 16 were all coordinated before a single Federal District 17 Court Judge. 18 3. In 1967 the actions against all defendants, 19 with the exception of American Pipe and Construction Co., 20 were settled and compromised on a lump sum basis, the pro- 21 ceeds being distributed amongst the various plaintiffs 22 pursuant to an agreement, all of which was duly approved 23 and ratified by entity and approved by the Court. 24 4. A condition of the acceptance of said partial 25 settlement by certain plaintiffs not represented by the 26 Attorney General of the State of California was an agree- 27 ment by and between the plaintiffs concerning the conduct 28 of the litigation still remaining against, and the 29 allocation among plaintiffs of the expected recovery from 30 defendant American. This agreement known to plaintiffs, 31 as the Western Associated Pipe Plaintiffs Organization I Compact provides, among other things, for (a) common 2 sharing of expenses; (b) the retention of a lead 3 counsel to prosecute and try all cases against the 4 remaining defendant American Pipe and Construction 5 Co. under the supervision of an Executive Committee 6 of the plaintiffs party to the compact; and (c) the 7 distribution of any recovery against American to 8 all plaintiffs proportionately to their verified 9 transactions with American over the fourteen year 10 period 1950 through 1963. 11 5. On July 14, 1967, the Attorney General 12 of the State of California entered into such Compact, 13 hereinafter called WAPPO, on behalf of entity. Since 14 then, the agreements embodied in the WAPPO Compact have 15 been and are being carried out with the Attorney General 16 of California as chairman of its Executive Committee. 17 6. Plaintiffs' counsel, acting through their 18 Executive Committee and lead counsel, have now negotiated 19 and reached agreement on the terms of a settlement and 20 compromise of the litigation with defendant American 21 Pipe and Construction Co., the terms of which are more 22 fully set out in the attached document entitled "MEMORANDUM 23 OF UNDERSTANDING FOR SETTLEMENT OF WEST COAST PIPE CASES 24 BETWEEN ALL PLAINTIFFS AND AMERICAN PIPE AND CONSTRUCTION 25 COMPANY". 26 7. Such Memorandum of Understanding provides 27 for payment by American to all plaintiffs of the lump 28 sum amount of eight million five hundred thousand 29 dollars ($8,500,000) over a period of seven years 30 with interest. 31 2. I NOW BE IT RESOLVED THAT: 2 A. 3 The MEMORANDUM OF UNDERSTANDING FOR SETTLEMENT 4 OF WEST COAST PIPE CASES BETWEEN ALL PLAINTIFFS AND 5 AMERICAN PIPE AND CONSTRUCTION COMPANY and the Western 6 Associated Pipe Plaintiffs Organization Compact, copies 7 of which are attached hereto as Exhibits "I" and "III", 8 respectively, are hereby adopted, ratified and confirmed. 9 B. 10 The City Manager of entity is 11 hereby authorized to sign the release of claims against 12 the defendant and attached hereto as Exhibit "II" as the 13 official act of entity. 14 C. 15 The Attorney General of the State of California 16 is hereby authorized by entity to enter into a stipulation 17 dismissing this litigation with prejudice and without 18 costs and to take any and all other action which may be 19 required of this entity in order to effectuate and con- 20 summate the compromise and settlement provided for in said 21 Memorandum of Understanding and distribute any monies 22 received from defendant American Pipe and Construction Co. 23 in accordance with said WAPPO Compact. 24 Adopted this 6th day of January , 19 69. 25 26 27 f 28 Mayo' 29 Attest: 30 31 3. I. HERBERT K. WHITE, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 6th day of January , 1969 , and adopted thereafter by the following vote: AYES: Councilmen: Crosby-Diederichsen-George-Johnson-Martin. NOES: Councilmen: None Absent Councilmen: None City Clerk -4-