CCR1999102COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #102-99
SETTLEMENT OF BOXHORN/RYAN/GROVEWAY
SEWER PROJECT LITIGATION
WHEREAS, The City of Muskego is a defendant, counterclaiming plaintiff and third-party
plaintiff in a lawsuit pending in Waukesha County Circuit Court. The lawsuit is entitled
Gustafson Construction Corporation v. City of Muskego, et al., Case No. 98-CV-139. The case
is scheduled for a jury trial on July 13, 1999; and
WHEREAS, The lawsuit involves Gustafson’s claims against the City relating to its contract for
the installation of the BoxhomRyadGroveway sewer and the City’s claims against Gustafson
and its bonding company for problems relating to the performance and completion of that
contract: and
WHEREAS, The City, Gustafson and the bonding company participated in mediation pursuant to
the Court’s scheduling order; and
WHEREAS, As a result of the mediation process, the mediator has recommended a settlement as
being fair under which Muskego would pay Gustafson $272,000.00 in full and final settlement of
the BoxhodRyadGroveway contract. This settlement includes allowances for the City to repair
the sewers which are leaking and complete the restoratiodlandscaping work which remains to
finalize the contract. The settlement also includes a consideration of the non-conforming backfill
installed at the job site.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of Muskego,
upon the recommendation of the mediator, does hereby approve the proposed settlement with
Gustafson and its bonding company under which the City of Muskego will pay to Gustafson the
sum of $272,000 in return for a full release of all claims and a dismissal of the lawsuit.
BE IT FURTHER RESOLVED That the City will release all of its claims against Gustafson and
the bonding company, dismissing its counterclaims and third-party complaint.
DATED THIS 8th DAY OF JUNE, 1999.
SPONSORED BY:
David L. De Angelis, Mayor
This is to certify that this is a true and accurate copy of Resolution #I 02-99 which was adopted
by the Common Council of the City of Muskego.
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