RESOLUTION NO. RS2005-732


A resolution approving the settlement of the lawsuit brought by the Metropolitan Government against Defendant American Manufacturers Mutual Insurance Company, said settlement being the payment of thirty-nine thousand dollars ($39,000) to the Metropolitan Government.

Whereas, the Defendant American Manufacturers Mutual Insurance Company executed a performance agreement as the surety on the bond for a development known as Brittany Park, Phase 2, Subdivision No. 98S-89-86-P to ensure completion of improvements, including roadways, and sidewalk construction; and

Whereas, the principal on the bond, Carlton Enterprises, Inc. was found to be in default for failure to complete all improvements pursuant to the performance agreement; and

Whereas, as a result of the default, the Metropolitan Government brought suit against Carlton Enterprises and American Manufacturers Mutual Insurance Company; and

Whereas, Defendant American Manufacturers Mutual Insurance Company has now agreed to pay to the Metropolitan Government the full amount of the bond, thirty-nine thousand dollars ($39,000); and

Whereas, after a thorough investigation of this situation, the Department of Law believes that the settlement set forth herein is fair and reasonable, and recommends that this lawsuit against the surety, American Manufacturers Mutual Insurance Company, be settled and that these funds be deposited into the appropriate fund and account as determined by the Department of Finance.

Now, therefore, be it resolved by the Council of the Metropolitan Government of Nashville and Davidson County:

Section 1. That the Metropolitan Department of Law is authorized to settle the lawsuit brought by the Metropolitan Government against the surety American Manufacturers Mutual Insurance Company by means of the payment by the defendant surety to the Metropolitan Government the amount of thirty-nine thousand dollars ($39,000) and to deposit said funds into the appropriate fund and account as determined by the Department of Finance.

Section 2. That this resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Amanda McClendon  

LEGISLATIVE HISTORY

Referred: Budget & Finance Committee 
Introduced: March 15, 2005
Adopted: March 15, 2005
Approved: March 18, 2005 
By: