Park Place Condominium Association
To: Park Place Owners
From: Park Place Board of Directors
Date: March 4, 2011
Subject: Mediated Settlement of Park Place v. Fireman's Fund, et al.Lawsuit
Late last week, at the conclusion of a full day's mediation in the matter, the Association and Fireman's Fund, CHI and Tim Verrett settled their differences. A summary by Mark Sandberg, one of the attorneys for the Association, follows.
1. Fireman's Fund, CHI and Verrett have agreed to settle for a total grossamount of $2,175,000. This will be $1,025,000 from Fireman's Fund, $1,000,000 from CHI (the insurance broker) and $150,000 from Tim Verrett (the lawyer).
2. While I cannot accurately tell you at this time the amount of litigation costs for which the lawyers are entitled to be reimbursed, I estimate that it will not exceed $75,000, since we were reimbursed in full as of last August (2010) when the funds from the Directors and Officers insurer were received. As a result, we are only talking about litigation costs incurred since last summer.
3. After repaying those litigation costs, I estimate the net recovery before payment of attorney fees and payment to Adjusters International (the Association's public adjuster) is $2,100,000.
4. The amount of money owed to the lawyers and Adjusters International is 1/3 of the recovery. I estimate this equates to $700,000.
5. That would leave a net to the Association, after all costs and fees (including those to AI), of $1,400,000. This is what I estimate the Association will receive in roughly 30 days. If expenses of litigation are less than the $75,000 I have estimated, then the amount that the Association will receive will be slightly higher. However, for planning purposes, $1,400,000 is a pretty good number.
The Board has reviewed and approved Dokoozian's bid for interior renovations in the South Tower. Work will begin as soon as possible (approximately early to mid May). Dokoozian was also asked for bids on other areas of the South Tower and the courtyard, for the Board's review in April.
The Board will review disposition of settlement moneys once costs are known and funds are received.