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Agreement - Stoneman, Richard - 2013-08-29 SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release ("SETTLEMENT AGREEMENT AND RELEASE") is made and entered into by and between the Costa Mesa Sanitary District, a California sanitary district, (hereinafter "CMSD") and Richard A. Stoneman, an individual, Cynthia A. Stoneman, an individual, and the Richard A. Stoneman and Cynthia A. Stoneman Family Trust, (hereinafter "OWNERS") with reference to the following facts: WHEREAS, OWNERS own certain property described as 2457 Santa Ana Avenue, Costa Mesa, since December 17, 2001; and WHEREAS, CMSD provides sewer service to the area that serves said property; and WHEREAS, the parties believe that CMSD or its agents may have caused the sewer lateral on said property to be damaged so that sewage was not properly transported for treatment via CMSD's sewerlines; and WHEREAS, OWNERS were charged for sewer service although they did not receive sewer service; and WHEREAS, OWNERS were also required to pay contractors and others for sewer problems that may have been caused by CMSD or its agents; and WHEREAS, the parties did not discover the facts about the lateral until recently; and WHEREAS, the parties desire to enter into a settlement agreement with respect to the above to buy their peace; NOW, THEREFORE, the parties hereto do hereby AGREE as follows: 1. Settlement Amount. Within fifteen (15) days of the execution of this SETTLEMENT AGREEMENT AND RELEASE, CMSD will cause a check in the amount of Twenty-Three Thousand Six Hundred Twenty-Five Dollars and Thirty= Seven Cents ($23,625.37) to be delivered to OWNERS. Said sum shall be the total amount to be paid in settlement of this dispute and shall encompass all damages of OWNERS, including, but not limited to, past sewer charges paid, sums paid to contractors, plumbers, and others required to work on the property or sewer system to correct the problems recounted above, and attorneys fees and any other costs involved. 2. Sewer Reconstruction. OWNERS acknowledge that CMSD has made substantial repair work to the lateral and its connection to CMSD's sewerline and has removed contaminated soil. These services provide part of the consideration for this SETTLEMENT AGREEMENT AND RELEASE. 1 3. No Admission of Liability. Neither side admits liability in this matter, but the parties desire to settle to buy their peace. 4. General Release. In consideration of the above payment, OWNERS and their heirs, executors, and assignees do hereby RELEASE the CMSD and its officers, agents, and employees from any and all liability arising out of these facts. 5. All Claims Released. OWNERS hereby expressly agree that this SETTLEMENT AGREEMENT AND RELEASE extends to all claims of every nature and kind whatsoever, known or unknown suspected or unsuspected, against CMSD, and its officers, agents, and employees, and waive(s) all rights under Civil Code Section 1542, which provides as follows: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 6. Successors and Assigns. This SETTLEMENT AGREEMENT AND RELEASE shall inure to the benefit successors in interest to each party, including, but not limited to, assignees, heirs, and other successors. 7. No Assignment. OWNERS warrant that they have not assigned or transferred their claim regarding the above facts to any other person or entity. 8. Entire Agreement. The parties represent that this SETTLEMENT AGREEMENT AND RELEASE represents the complete and entire agreement between the parties hereto, and the terms of this SETTLEMENT AGREEMENT AND RELEASE are contractual and not a mere recital. 9. Independent Review. Each of the parties has independently reviewed this SETTLEMENT AGREEMENT AND RELEASE and knows the contents thereof and understands that they can seek and obtain legal advice before signing. 10. Cooperation. The parties agree to cooperate with each other in implementing this SETTLEMENT AGREEMENT AND RELEASE. [SIGNATURES ON NEXT PAGE] 2 COSTA MESA SANITARY DISTRICT RICHARD A. T o NEMAN Approved by: Signature General Manager Approved as to Form: CYNTHIA A. STONEMAN / F 66)44,, Harper & Burns LLP Si:nature District Counsel RICHARD A. STONEMAN AND CYNTHIA A. STONEMAN FAMILY TRUST 0/*/ Trustee r/ustee 3