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Home My WebLink About06- Rasmussen Release and Settlement Agreement ORIGINAL RELEASE AND SETTLEMENT AGREEMENT This Release and Settlement Agreement ("Agreement" or "Release") is entered into this 9th day of May, 2006, between Rick A. Rasmussen ("Releasor" or "Rasmussen") and City of Bozeman ("Releasee" or "City"). I. SUBJECT MATTER 1. Rasmussen has been an employee of City since May 1991, holding various positions in various departments. Since 1998, he has been employed in the City's Water & Sewer Division. 2. In December 2001, Rasmussen suffered a work-related back injury. Throughout most of 2002, Rasmussen was off work for several weeks and thereafter subject to restrictions recommended by his physician relating to the amount of weight he could lift and otherwork~related activities. Rasmussen was placed on light duty by the City. 3. On February 27, 2003, the City sent Rasmussen a "Notice of Hearing," a letter advising him that due to his physical restrictions, the City was considering termination of his employment. Rasmussen contested that decision pursuant to the City's employee grievance procedures. 4. Rasmussen continued his employment with the City, but remained on lighter duty until July 23, 2004, when it was mutually agreed that he resume his regular responsibilities. 5. In December 2003, Rasmussen filed a Complaint with the Montana Department of Labor and Industry Human Rights Bureau claiming violation of state and federal laws prohibiting discrimination against disabled persons. Settlement Agreement and Release - Page 1 H:\20028\033\MEL3377 WPD 6. In June 2004, the Montana Human Rights Bureau concluded its investigation, finding no probable cause to proceed against the City and issued a Notice of Dismissal and Notice of Right to File Civil Action. 7. In August 2004, Rasmussen filed a Complaint for Damages and Equitable Relief against City in the United States District Court for the District of Montana, Butte Division (Cause No. CV-04-60-BU-RWA) (hereinafter the "Civil Cause"), alleging violation of state and federal laws prohibiting discrimination in employment based on disability. Rasmussen claimed he sustained compensable damages both in the form of lost wages and fringe benefits and emotional distress. The City denied any wrong doing. 8. Shortly before the scheduled trial of the Civil Cause, Rasmussen and City have negotiated a mutually acceptable accord and compromise of all issues between them, including but not limited to all those issues that were to be litigated in the Civil Cause. II. CONSIDERATION 9. City will make a lump sum payment of Forty Thousand and 00/100 Dollars ($40,000.00). Payment will be in the form of a check or draft made jointly payable to "Rick Rasmussen and his attorney, Michael J. San Souci." The payment is a compromise of Rasmussen's claims of alleged emotional distress and legal expenses. 1 O. City will allow Rasmussen to extend COBRA continuation health insurance coverage for up to six (6) years, at Rasmussen's election and conditioned upon Rasmussen making the required premium payments. 11. Rasmussen will resign his position with the City Water & Sewer Division, effective not later than May 10, 2006. Settlement Agreement and Release - Page 2 H :\20028\033\MEL3377. WPD 12. Rasmussen is entitled to pursue whatever retirement benefits he is entitled to through the Montana Public Employment Retirement System (PERS), but City makes no warranties or representations about the retirement benefits to which he is entitled. 13. Rasmussen has agreed that he will not apply for any job vacancies with the City in the future or otherwise seek employment with the City. 14. Rasmussen's termination of employment with the City will be considered a retirement in good standing pursuant to City personnel policy. Subject to the requirements of the City personnel policy, responses by City personnel to inquiries from future potential employers of Rasmussen will be consistent with his record of having completed 25 years of employment with the City with favorable job evaluations and will not disparage his work record because ofthe disability discrimination dispute outlined in the Subject Matter section of this Agreement. 15. As an integral consideration of this Agreement, Rasmussen further agrees to release the City as set forth in the following section. III. RELEASE IN FULL 1. Rasmussen personally, and on behalf of his successors and assigns, fully releases and forever discharges the City, together with City's elected officials, managers, employees, agents, attorneys, and insurers of any from any and all claims, demands, damages, actions, causes of action or suit of any kind or nature arising out of the Subject Matter of this Agreement, including but not limited to all claims that were asserted or could have been asserted in the Civil Cause. THIS FULL AND FINAL RELEASE IS INTENDED TO COVER ANY AND ALL FUTURE DAMAGES, INJURIES, EMOTIONAL DISTRESS, Settlement Agreement and Release - Page 3 H :\20028\033\MEL3377. WPD OR ILLNESSES, EVEN IF NOT NOW KNOWN TO THE PARTIES OR NOT FULLY UNDERSTOOD, BUT WHICH MAY LATER DEVELOP OR BE DISCOVERED, EXCEPTING ONLY RASMUSSEN'S CURRENT WORKER'S COMPENSATION CLAIM WITH MMIA. 2. The parties agree that this Settlement Agreement is a compromise of a disputed claim and that neither the payment of the settlement amount nor the negotiations for the settlement shall be considered an admission of liability by City, which expressly denies all liability. 3. Rasmussen represents that no additional claims are contemplated against any other party potentially liable for the losses, damages, or injuries for which this Release is given. In the event any additional claim is made which directly or indirectly results in additional liability exposure to City for the losses, injuries, and damages for which this Release is given, Rasmussen covenants and agrees to indemnify and save City harmless from all such claims and demands, including reasonable attorney's fees and all other expenses reasonably incurred. 4. Rasmussen stipulates and agrees that his attorney of record shall dismiss with prejudice as fully settled on the merits the Civil Cause and each party shall bear their own legal costs and attorney's fees. IV. MISCELLANEOUS PROVISIONS 1. ENTIRE AGREEMENT. This Release and Settlement Agreement constitutes the entire agreement between Rasmussen and City, and the terms of this Release and Settlement Agreement are contractual and not a mere recital. Any matters discussed in Settlement Agreement and Release - Page 4 H:\20028\033\MEL3377 WPD negotiations or set forth in prior writings are of no further effect. The terms of this Release and Settlement Agreement can be modified only in writing signed by both Rasmussen and City. 2. GOVERNING LAW. This Release and Settlement Agreement is to be construed and interpreted pursuant to the laws of the State of Montana. 3. ATTORNEY'S FEES. If either party takes legal action to enforce or interpret this Release and Settlement Agreement, the prevailing party in such legal action will be entitled to recover from the non-prevailing party its reasonable legal expenses, including reasonable attorney's fees. 4. WARRANTY. The parties mutually warrant that they have read this Release and Settlement Agreement, discussed (or had the opportunity to discuss) its legal effect with their attorney, understand all the terms and conditions, and sign the same as their own free will and accord. The parties further warrant that they intend this Release and Settlement Agreement to be binding upon their mutual (where applicable) heirs, successors, personal representatives, and assigns. (;wl DATED this ~ay of May, 2006. CAUTION: READ BEFORE SIGNING! ~ [e R~~ RICKIl. RASMUSSEN, Releasor \\ \\ \\ Settlement Agreement and Release ~ Page 5 H:\20028\033\MEL3377 WPD STATE OF MONTANA ) :ss. COUNTY OF GALLATIN ) On this ctJ day of May, 2006, before me, a notary public of the State of Montana, personally appeared RICK A. RASMUSSEN, known to me to be the person named in the foregoing Release and Settlement Agreement, and acknowledged to me that he executed the same as his free act and deed, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year in this certificate first above written. \\\~~f~~~l" .\' "e:n""' '// "...\,'" Crl " < "". ! V .... t...,.o & ~ .#' ~" ~-t-. . . . . '..) "" ~~ - . IU. , <'..\p...L . .'..'_-:::.. .._:.. .......1 ~. ~'''' . l ._ '.. ,,;J . -<. / -i.. .' .< ~~ __l'lO . .v'-' :::_~::: :~L:<),~ :f~-~ ....., ,.~ 'y III. "" ~,.. ~:". .'^' . v (, ...... ...,),tll< ..t,....... .. T .. to. ;( ,... '" ,> / Srrn-;. 0 \'\" I, '\I~ \ APPRO'VEt:> 'BY: ,- c'>-, \\.A eke Llt k lc"(, t~. .~v 2'-.. Notary Public for State of. ntana Prin~ ~ame: ~\ \L ~uJ \1:.- ~ L ",\It t (Juccl Residing at: 6{ 1,,\ r cu\C . My Commission EXpires: Jil.-li\,.V,t\.. ~j 0~ I ),.{"ll f /' Michael J. San Souci, A orney for Releasor OF BOZEMAN, Releasee ~ j)~' BY: Chris Kukulski Its: City Manager STATE OF MONTANA ) :ss. COUNTY OF GALLATIN ) On this 10'1' f\ day of May, 2006, before me, a notary public of the State of Montana, personally appeared CHRIS KUKULSKI, as City Manager of the CITY OF BOZEMAN, known to me to be the person named in the foregoing Release and Settlement Agreement, and acknowledged to me that he executed the same as his free act and deed, for the uses and purposes therein mentioned. Settlement Agreement and Release - Page 6 H :\20028\033\MEL3377. WPD \\\\\\1\1111 tt 11/1/1 ,,\\\ ,-'; r\ PI", IIII/,.. ~' " , {" -1 ''i. ~'" ',J' L-- 'l;- ~ 't". ,~~ ~ /J, . ~ ~ -....., \ ~- ~ ..... . - ,/ . C:: ~ *', ~ ': m" ~~ l~f01L : *'~ ~ '7'>€AL} . ~ '~ ~~"","~~$ ~4111 Of:' MO"~'\ ~",,,, 1//11/ II J 111\\\\\\\\ IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year in this certificate first above written. ~(jjh1A f)mJ7J1A1JW) otary Public 'r Stat of Mo tapa Print Name: llt Residing at: OU/)1(1f)1 mm1t1/ltL- My Commission Expires: / ,- Z&.2010 APPROVED BY: U;;;~ , Allan H. Baris, Attorney for Releasee Settlement Agreement and Release - Page 7 H :\20028\033\MEL3377. WPD