July 22, 2014
Status:
Open Agenda
Approve the Settlement Agreement between The School Board of Broward County, Florida and Greenspoon Marder, P.A.
This Agreement is the result of efforts to resolve differences and disputes between Greenspoon Marder, P.A. ("Greenspoon") and The School Board of Broward County, Florida (the "SBBC") (the "Parties") arising out of a "Development and Escrow Agreement" dated February 21, 2006 between MPG Parkland, Ltd. as "Developer" ("MPG"), SBBC as "Principal", and Ruden McClosky, P.A. as "Escrow Agent" ("Ruden"). Greenspoon came into possession of the funds held in escrow (the "Escrowed Funds") through Ruden bankruptcy proceedings.
The Development and Escrow Agreement (the "Agreement") concerned property for the proposed new Elementary School "Z" (AKA Elementary School "A-1"), and defined construction requirements for Primary Drive Aisles and the Plat Improvements defined by Broward County.
Pursuant to the Agreement, the SBBC placed $747,691.43 into Ruden's interest-bearing trust account. On or about July 8, 2008, Ruden disbursed $408,443.40 of the Escrowed Funds to MPG, including accrued interest. After the disbursement, MPG failed and refused to perform its further development obligations pursuant to the Agreement, ceased operations and was ultimately administratively dissolved.
As a result of MPG's failure and refusal to perform pursuant to the Agreement, Ruden filed an action in Broward County Case Number 10 24454 (02), asking the Court to determine each Defendant's entitlement to the remaining Escrowed Funds.
SBBC filed an Answer and Affirmative Defenses to Ruden's allegations including but not limited to alleging that Ruden's disbursement to MPG was improper. SBBC also filed a Crossclaim against MPG for Breach of the Agreement. The Clerk of Court entered Defaults against MPG in favor of both Ruden and SBBC on July 27, 2010 and August 31, 2010, respectively.
On November 1, 2011, Ruden filed for bankruptcy, and on or about April 23, 2013, Greenspoon was substituted for Ruden into the Lawsuit for all purposes.
On May 30, 2013 Greenspoon obtained Default Final Judgment against MPG. On April 8, 2014, the SBBC obtained Default Final Judgment against MPG which awarded SBBC $313,764.43 in damages (inclusive of prejudgment interest, attorney's fees and court costs), which has been recorded in the Public Records of Broward County, Florida. A Judgment Lien shall be filed against MPG in the full amount of the award, with accruing interest.
On May 19, 2014, the Court entered a Final Judgment requiring Greenspoon to disburse the Escrowed Funds as set forth in this Settlement Agreement. The Escrowed Funds, including interest, totals $415549.40. The Settlement Agreement requires Greenspoon to disburse $400,000 to the SBBC (the "Settlement Sum"), minus a portion of its accrued fees and costs as provided for in the Escrow Agreement in the amount of $15,549.40.
This Settlement Agreement resolves all issues remaining in the Lawsuit and all underlying claims and disputes of Greenspoon and SBBC. District staff and the Office of the General Counsel recommend approval of the Settlement Agreement as a fair, reasonable and cost-effective resolution of the dispute between the parties.
There is a positive financial impact to the District in the amount of $400,000.
Requested Action
Approve the Settlement Agreement between The School Board of Broward County, Florida and Greenspoon Marder, P.A.
Summary
This Agreement is the result of efforts to resolve differences and disputes between Greenspoon Marder, P.A. ("Greenspoon") and The School Board of Broward County, Florida (the "SBBC") (the "Parties") arising out of a "Development and Escrow Agreement" dated February 21, 2006 between MPG Parkland, Ltd. as "Developer" ("MPG"), SBBC as "Principal", and Ruden McClosky, P.A. as "Escrow Agent" ("Ruden"). Greenspoon came into possession of the funds held in escrow (the "Escrowed Funds") through Ruden bankruptcy proceedings.
The Development and Escrow Agreement (the "Agreement") concerned property for the proposed new Elementary School "Z" (AKA Elementary School "A-1"), and defined construction requirements for Primary Drive Aisles and the Plat Improvements defined by Broward County.
Pursuant to the Agreement, the SBBC placed $747,691.43 into Ruden's interest-bearing trust account. On or about July 8, 2008, Ruden disbursed $408,443.40 of the Escrowed Funds to MPG, including accrued interest. After the disbursement, MPG failed and refused to perform its further development obligations pursuant to the Agreement, ceased operations and was ultimately administratively dissolved.
As a result of MPG's failure and refusal to perform pursuant to the Agreement, Ruden filed an action in Broward County Case Number 10 24454 (02), asking the Court to determine each Defendant's entitlement to the remaining Escrowed Funds.
SBBC filed an Answer and Affirmative Defenses to Ruden's allegations including but not limited to alleging that Ruden's disbursement to MPG was improper. SBBC also filed a Crossclaim against MPG for Breach of the Agreement. The Clerk of Court entered Defaults against MPG in favor of both Ruden and SBBC on July 27, 2010 and August 31, 2010, respectively.
On November 1, 2011, Ruden filed for bankruptcy, and on or about April 23, 2013, Greenspoon was substituted for Ruden into the Lawsuit for all purposes.
On May 30, 2013 Greenspoon obtained Default Final Judgment against MPG. On April 8, 2014, the SBBC obtained Default Final Judgment against MPG which awarded SBBC $313,764.43 in damages (inclusive of prejudgment interest, attorney's fees and court costs), which has been recorded in the Public Records of Broward County, Florida. A Judgment Lien shall be filed against MPG in the full amount of the award, with accruing interest.
On May 19, 2014, the Court entered a Final Judgment requiring Greenspoon to disburse the Escrowed Funds as set forth in this Settlement Agreement. The Escrowed Funds, including interest, totals $415549.40. The Settlement Agreement requires Greenspoon to disburse $400,000 to the SBBC (the "Settlement Sum"), minus a portion of its accrued fees and costs as provided for in the Escrow Agreement in the amount of $15,549.40.
This Settlement Agreement resolves all issues remaining in the Lawsuit and all underlying claims and disputes of Greenspoon and SBBC. District staff and the Office of the General Counsel recommend approval of the Settlement Agreement as a fair, reasonable and cost-effective resolution of the dispute between the parties.
School Board Goals
| Goal 2: Continuous Improvement |
Financial Impact
There is a positive financial impact to the District in the amount of $400,000.
Source of Additional Information
Thomas C. Cooney, Esq. 754-321-2050 J. Paul Carland, II, Esq. 754-321-2050
Associated File Attachments
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Settlement Agreement (Files) | |
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HH-1 Executed Agreement (Files) |