10/24/1989 - Laserfiche WebLink

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ASSOCIATES MANAGEMENT GROUP, INC. - SETTLEMENT OFFER Asst. County Attorney Collins reviewed the following: TO: The Board of County Commissioners FROM:‘"/ William G. Collins II - Assistant County Attorney DATE: October 18, 1989 SUBJECT: Associates Management Group, Inc. v. Indian River County: Settlement Offer A lawsuit was filed last fall by Associates Management Group, Inc. challenging the constitutionality of Code water access requirements as applied to the Sanderling Subdivision. On August 1, 1989, on the advice of the County Attorney's Office, the Board suspended the operation of Section 10(r) of the Subdivision and Platting Ordinance and Section 23.3(1) of the site plan review standards to delete the water access requirement. This action was based on a determinationthat controlling case law was directly on point in favor of Associates Management Group, Inc. I had recommended on August 1, 1989 that the County proceed with the lawsuit and defend on the basis that the developer had made a knowing voluntary waiver of his rights by virtue of a letter of no objection filed prior to final plat approval, and prior to purchasing the property. In the past few weeks the attorney -for -Associates Management Group, Inc. has presented me with contracts which strengthen Associates Managements Group, Inc.'s argument that- the withdrawal of objection was made under duress and not voluntary. A contract for the purchase of the Sanderling property was presented which had no contingency based on plat approval. In other words, the developer was obligated to purchase the property whether plat approval was granted or not. This weakens our argument for a knowing voluntary waiver of rights based on not taking title until after plat approval. The burden of proof on knowing voluntary waiver lies with the County. On October 11, 1989 I received a settlement offer from Richard Candler, representing Associates Management Group, Inc. Mr. Candler estimated the value of the case at $60,000 should they prevail at trial. This figure represents a recovery of the $27,000 paid to. the County over four years ago, plus statutory interest over four years and eight months at $15,000, plus attorney's fees and costs at $11,500. A court might very well increase attorney's fees to $18,000 because the case was taken on contingency. Associates Management Group, Inc. has offered to settle the case for the principal and interest of $36,000 plus $11,000 for attorney's fees and costs or a total of $47,000. RECOMMENDATION $59,500 is a reasonable valuation of this case. The County has already recognized that our code requirement would not pass constitutional scrutiny. I would estimate our chances to prevail on the issue of waiver at less than 50%. OCT 2 4 i989 47 BOOK S f'i:GE 4:0U