HomeMy WebLinkAbout113-00 RESOLUTION•
RESOLUTION NO. 113-00
MICROFILMED
A RESOLUTION AGREEING TO A PROPOSED STIPULATION
OF SETTLEMENT SUBJECT TO COURT APPROVAL IN RE.
HICKS, ET AL V CITY OF FAYETTEVILLE, ET AL; CIV 97-500
IN THE AMOUNT OF $213,469.50.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS*
Section 1. That the City Council hereby agrees to the proposed Stipulation of Settlement
Subject to Court Approval In Re: Hicks, et al v. City of Fayetteville, et al., CIV 97-500 in the
amount of $213,469.50. A copy of the proposed stipulation is attached hereto marked Exhibit "A"
and made a part hereof.
PASiED AND APPROVED this15S day of August , 2000.
ATTEST: / /
By: � rte(, re
Heather Woodruff, City Cl
APPROVED
By: /�
F ed Hanna, Mayor
NAME OF FILE:
CROSS REFERENCE:
Date
Contents of File Initials
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FAYETTEVILLE
LEGAL DEPARTMENT
CITY ATTORNEY DIVISION
EPARTMENTAL CORRESPONDENCE
To: Fred Hanna, Mayor
Fayetteville City Council
JEnnv E. ROSE. CTry ATTORNEY ,_s�
LAGAYIE D.MCCARTY. Asst Cm AnmRNEV � //
From: Jerry E. Rose, City Attorney. 1`1
Date: July 25, 2000
Re: Proposed settlement of litigation regarding the rollback of ad
valorem taxes for the years 1994 through 1999.
Attached please find a copy of a draft of an agreement between the City of Fayetteville and
a class of plaintiffs settling the litigation regarding the rollback of millage required by Amendment
59 of the Arkansas Constitution. The basic conditions of settlement are as follows:
1. The City agrees to pay an agreed total amount of $213,469.50 to all
class members who file a claim on a pro rata basis (less court
approved attorney fees).
2. The
attomeys for acourt of 33 /o of the $213,469.50 ande class members will the attorney
City will
1/not object
to that request.
3. The refund process will follow the county's procedure and the City
will pay for their share of the refund costs (not out of the $213,469.50
but as an additional expense).
4. The refund process will require the presentation of a claim form
except for out of county and those physically unable to present the
form.
5. Millage will be rolled back from 1.0 mills to 0.8 mills.
6. ad valorem property tax for the years encompassing994 through 1999. regarding
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THE EVANS LAW FIRM
A Professional Association
POST OFFICE BOX 1986
2333 NORTH GREEN ACRES
FAYETTEVILLE, ARKANSAS 72702-1986
TELEPHONE (501) 521-9998
TELEFAX (501) 521-9995
MARSHALL DALE EVANS, J.D., P.A. CHARLES N. WILLIAMS}
STEPHANIE BRODACZ, J.D., LLM., P.A. OF COUNSEL
ROBERT D. BRANDON, J.D., P.A. t Formerly Circuit/ Chancery Judge
ROB W. WRIGHT, MHSA., P.D., J.D.
MONICA K. ROBERTS, J.D.•
*Licensed in Oklahoma
July 24, 2000
Jerry Rose
Fayetteville City Attorney
113 W. Mountain
Fayetteville, AR 72701
VIA FACSIMILE
Re: Hicks, et al. v. City of Fayetteville, et al.;
Washington County Circuit Consolidated No. CIV 97-500
Dear Jerry:
Following is a Stipulation of Settlement.
With kindest regards,
Sincerely yours,
Mars 1 . r ale Evans, P.A.
Enclosure
Attachment
c:\M<odR_nc5Tnfcr/lLwc\eo Lester.\00-07-21 attorney lcr.mc
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521-9995
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IN THE CIRCUIT COURT WASHINGTON COUNTY, ARKANSAS
JEANNE M. HICKS, et al,
vs. Consolidated No. CIV 97-500
CITY OF FAYETTEVILLE, et al,
PLAINTIFFS
DEFENDANTS
P.2
STIPULATION OF SETTLEMENT
SUBJECT TO COURT APPROVAL
OF CITY OF FAYETTEVILLE. ARKANSAS
WHEREAS, Jeanne M. Hicks and Tammy Lewis, for themselves and all others similarly
situated, are the Class Plaintiff for the City of Fayetteville ad valorem property taxpayers in the
captioned civil action; and,
WHEREAS, this litigation was certified as a Class Action pursuant to Rule 23 of the
A.RC.P. by order of this court; and,
WHEREAS, Plaintiff (as hereinafter defined) and the Defendant City of Fayetteville,
Arkansas, desire to terminate all complex and protracted litigation regarding the issues of millage
rollbacks damages and attorneys' fees between themselves as parties to this litigation, and
WHEREAS, Plaintiff (as hereinafter defined) and the City of Fayetteville desire to ter-
minate all complex and protracted litigation regarding the rollback of millage, amount and
method of refund to taxpayers (as hereinafter defined) of the amounts found to have been ille-
gally exacted in violation of ARK. CONST. art. XIV §14 (Amendment 59), and attorneys' fees,
and,
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WHEREAS, the Plaintiff (as hereinafter defined) and the Defendant City of Fayetteville
have agreed to settle, resolve and compromise their several claims and disputes on the terms and
conditions set forth herein.
NOW, THEREFORE, it is hereby stipulated and agreed as follows:
1. DEFINITIONS.
As used herein, the following terms shall have the following meanings unless the context
otherwise requires:
1.1 "Class" shall mean all ad valorem taxpayers for which Jeanne M. Hicks and
Tammy Lewis were certified to represent as Class Action Representatives pursu-
ant to Rule 23 of the A.R.C.P. by order of this court, i.e., the ad valorem taxpayers
of the City of Fayetteville, Arkansas.
1.2 "City of Fayetteville" (hereinafter refereed to as the "City") shall mean the City of
Fayetteville as a municipal corporation existing under the laws of the State of
Arkansas and its past, present, or future directors, aldermen, council members,
officers, controlling persons, employees, agents, representatives, attorneys of
record in this litigation, assigns, beneficiaries, predecessors and/or successors in
interest.
1.3 "Plaintiff' shall mean Jeanne M. Hicks and Tammy Lewis, individually and on
behalf of the Class and Class Members they represent
1.4 "Person" shall mean an individual, corporation, partnership, association or other
entity.
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1.5 `Taxpayers" shall mean any person who paid real or personal property taxes for
property within the City of Fayetteville for any of the tax years 1994 through
1999.
1.6 "Illegally Exacted Ad Valorem Property Taxes" shall mean all real and personal
property taxes from the taxpayers in excess of the amount allowed by ARK.
CONST. art. XIV, §14 (Amendment 59).
2. ORDER AND JUDGMENT.
The Plaintiff and the City stipulate and agree to be bound by and will jointly request that
the court enter an order and judgment that will contain the following substance and matter:
2.1 Illenally Exacted Ad Valorem Property Tax Refunds.
a. Taxpayers who file a claim shall have the opportunity to receive a pro -
rata refund of all illegally exacted ad valorem taxes paid less the award of attor-
neys' fees set forth below.
b. The court shall appoint Special Master fnamel or other person mutu-
ally agreed upon by the Plaintiff and the City to serve as special master to super-
vise, as approved by the court, the method and procedure of the refund process.
c. The expenses of administering the refund, including notice, and the
Special Master shall be borne by the City.
d. The refund process shall be administered by the County with a claims
process whereby Class Members may personally present a claim form. Out -of -
county taxpayers and those taxpayers that are physically unable to present the
form may have another person present the claim form. The Court shall appoint
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George B. Morton, P.O. Box 399, Fayetteville, Arkansas, 72702, to so act if
necessary.
2.2 Attorneys' Fees of Plaintiff's Attomeys.
a. Attorneys for the Plaintiff shall request an award of attorneys' fees and
costs for representing the Class an amount of 33-1/3% of the illegally exacted ad
valorem property taxes, subject to court approval, which shall be payable directly
to The Evans Law Firm, P.A., and Hirsch Law Firm, P.A., within 14 days of entry
of Order Approving Settlement. Defendant shall not object to the requested attor-
neys' fee of 33-1/3% of the fund. Attomeys for Plaintiff waive any claim for
attorney's fees from the refunds to be paid to Intervenors, William Jackson Butt,
II, Butt -n -Butt Hardwood Plantation, L.L.C., and John R. Hudson.
2.3 Undistributed or Unclaimed Funds Paid Into General Fund of City.
a. All illegally exacted ad valorem property taxes which remain after rea-
sonable effort, approved by the court, have been made to refund such monies to
the taxpayers shall be paid into the general fund of the City and may be used by
the City in any manner as its council may approve, including but not limited to,
any payments made by the City pursuant to this Stipulation or any order of this
court.
2.4 Stipulated and Agreed Amounts.
a. The Plaintiff and the City stipulate and agree that $213,469.50 is the
agreed total amount to be paid by the City; which amount is to be to the Class of
taxpayers (less court -approved legal fees) to all Class Members who file a claim
for refund. Refunds are to be paid'' 'A in June 2001 and'A in June 2002.
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2.5 Rollback of Millage.
a. The millage rate of the City has been 1.0rfor both real and personal
property taxes. upon court approval of this settlement, the City's millage shall
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roll back to 0.8for both real and personal property subject to lawful adjustment.
2.6 Full and Complete Discharge of all Class Claims Against the City.
a. Any claims, demands, and causes of action of the Class, and each and
every member thereof, and/or their attorneys of any kind or nature in connection
with, directly or indirectly, any subject matter decided in this litigation concerning
ad valorem property tax for the years 1994 through 1999. A separate claim filed
in the Circuit Court of Washington County by the same Plaintiff against the City
for refund of property taxes for the tax year 1998 and thereafter shall be dismissed
as to the City with prejudice immediately after entry of the order approving the
settlement.
b. Washington County claims certain monies from the City for reim-
bursement from road tax millage. Plaintiff assigns whatever rights they have
thereto to Washington County and are not settling that claim which the County
may now have against the City. '
3. PROCEDURES AND CONDITIONS TO EFFECT STIPULATION OF SETTLEMENT.
3.1 The Plaintiff, Plaintiffs counsel and the City will jointly request that the court
take the following actions and order the following events:
a. Conduct a telephone conference on July 25, 2000 for the purposes of:
i. Preliminary approval of this Stipulation and Settlement.
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ii. Appointment of a special master with instructions to present to
p.7
the court a proposal for the method and procedure of the refund process.
iii. Approving a Notice of Stipulation of Settlement and Hearing.
iv. Find that notice by publication is the best notice practicable
under the circumstances and that Notice of Settlement should be published
twice in the Legal Notices Section of the Northwest Arkansas Times.
v. Set the date of August 31, 2000 as the cutoff date by which
any and all objections to this Stipulation of Settlement must be filed with
the Circuit Clerk, Washington County; and
vi. Set and conduct a hearing on September 5, 2000, at 9:30 a.m.,
in the Washington County Courthouse to consider final approval of the
Stipulation of Settlement.
b. At the final approval hearing, consider and approve the amount of the
refund, the method and procedure of the refund process, approve the attorneys'
fees and expense award; and enter the court's Order Approving Settlement.
4. MISCELLANEOUS.
4.1 The undersigned attorneys of record for Jeanne M. Hicks and Tammy Lewis, for
themselves and all others similarly situated, warrant to the City that they have the
authority to settle the issue of attorneys' fees for all attorneys who represent or
represented said Plaintiff during the course of said litigation and that any and all
claims or liens of any nature regarding the payment of attorneys' fres, costs
and/or expenses are the sole responsibility of the undersigned attorneys of record
for Jeanne M. Hicks and Tammy Lewis, for themselves and all others similarly
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situated, and said attorneys agree to indemnify and hold harmless the City from
any such claims, including but not limited to, the attorneys' fees, if any required
in the City's defense of any action seeking additional attorneys' fees other than as
stipulated and agreed herein.
4.2 This Stipulation of Settlement shall be governed by and interpreted in accordance
with the laws of the State of Arkansas.
43 This Stipulation of Settlement constitutes the whole agreement between the
Plaintiff, Plaintiffs counsel and the City and supersedes all earlier agreements,
oral or written, if any. The parties hereto state and acknowledge that they have
not given or relied upon any representations, warranties, or promises that are not
set forth herein.
4.4 This Stipulation of Settlement may be modified, but such modification must be in
writing and approved by the parties hereto, or may be modified by court order.
IN WITNESS WHEREOF, this Stipulation of Settlement has been executed and entered
into as of this day of July, 2000 by the undersigned parties and counsel of record for the
parties hereto.
Parties:
Jeanne M. Hicks, for herself and all others
similarly situated taxpayers within the
City of Fayetteville, Arkansas
Tammy Lewis, for herself and all others
Similarly situated taxpayers within the
City of Fayetteville, Arkansas
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Attorneys at Law of Record;
Marshall Dale Evans, Attorney for
Jeanne M. Hicks and Tammy Lewis,
for themselves and all others similarly situated
E. Kent Hirsch, Attorney for
Jeanne M. Hicks and Tammy Lewis,
for themselves and all others similarly situated
Fred Hamia}f, Mayor,
City of Fayetteville, Arkansas
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CERTIFICATE OF SERVICE
I, E. Kent Hirsch, hereby certify that a true and correct copy of the foregoing pleading
was deposited in the U.S. Mail, postage prepaid, addressed to:
Mr. Rudy Moore, Jr.
Mr. Thomas Olmstead
P.O. Box 290
Fayetteville, Alt 72702-0290
Mr. Charles Harwell
Mr. Marcus Van Pelt
Cypert, Crouch, Clark & Harwell
P.O. Box 1400
Springdale, AR 72764
Mr. Boyce R Davis
Prairie Grove City Attorney
P.O. Box 999
Lincoln, AR 72744
Mr. David G. Nixon
The Nixon Law Firm
2340 Green Acres Road, Suite 12
Fayetteville, AR 72701
Mr. William Jackson Butt, II
Davis, Cox & Wright, PLC
P.O. Drawer 1688
Fayetteville, Arkansas 72702-1688
Brian Brooks, Deputy Attorney General
200 Catlett-Prien Tower Bldg.
323 Center Street
Little Rock, AR 72201-2610
this day of July, 2000.
c.+nnWJ1ith97%V vuf:-oyuv - farticvaledoc
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JUL-24-2000 15:39 521 9995
Mr. Jeff Harper
City Attorney of Springdale
P.O. Box 1208
Springdale, AR 72765-1208
Mr. George Butler
Attorney at Law
280 N. College Ave., Suite 145
Fayetteville, AR 72701
Mr. Jerry Rose
City of Fayetteville Admin. Building
113 W. Mountain
Fayetteville, AR 72701
Mr. Danny Wright
Elkins City Attorney
130-C North College
Fayetteville, AR 72701
Mr. John R. Hudson
Attomey at Law
16 E. Spring
Fayetteville, AR 72701
Honorable Paul Danielson
Circuit Judge
P.O. Box 188
Morrilton, AR 72110
E. Kent Hirsch
P.10
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IN THE CIRCUIT COURT WASHINGTON COUNTY, ARKANSAS
JEANNE M HICKS, et al, PLAINTIFFS
vs.
Consolidated No. CIV 97-500
CIV 98-1403
CITY OF FAYETTEVILLE, et al, DEFENDANTS
STIPULATION OF SETTLEMENT
SUBJECT TO COURT APPROVAL
OF CITY OF FAYETTEVILLE, ARKANSAS
WHEREAS, Jeanne M. Hicks and Tammy Lewis, for themselves and all others similarly
situated, are the Class Plaintiff for the City of Fayetteville ad valorem property taxpayers in the
captioned civil action; and,
WHEREAS, this litigation was certified as a Class Action pursuant to Rule 23 of the
A.R.C.P. by order of this court; and,
WHEREAS, Plaintiff (as hereinafter defined) and the Defendant City of Fayetteville,
Arkansas, desire to terminate all complex and protracted litigation regarding the issues of millage
rollbacks damages and attorneys' fees between themselves as parties to this litigation; and
WHEREAS, Plaintiff (as hereinafter defined) and the City of Fayetteville desire to termi-
nate all complex and protracted litigation regarding the rollback of millage, amount and method
of refund to taxpayers (as hereinafter defined) of the amounts found to have been illegally
exacted m violation of ARK. CONST. art. XIV §14 (Amendment 59), and attorneys' fees, and,
WHEREAS, the Plaintiff (as hereinafter defined) and the Defendant City of Fayetteville
have agreed to settle, resolve and compromise their several claims and disputes on the terms and
conditions set forth herein.
EXH•
FRO Po_
/Pxc,
• •
NOW, THEREFORE, it is hereby stipulated and agreed as follows:
1. DEFINITIONS.
As used herein, the following terms shall have the following meanings unless the context
otherwise requires:
1.1 "Class" shall mean all ad valorem taxpayers for which Jeanne M. Hicks and
Tammy Lewis were certified to represent as Class Action Representatives pursu-
ant to Rule 23 of the A.R.C.P. by order of this court, i.e., the ad valorem taxpayers
of the City of Fayetteville, Arkansas.
1.2 "City of Fayetteville" (hereinafter referred to as the "City") shall mean the City of
Fayetteville as a municipal corporation existing under the laws of the State of
Arkansas and its past, present, or future directors, aldermen, council members,
officers, controlling persons, employees, agents, representatives, attorneys of rec-
ord in this litigation, assigns, beneficiaries, predecessors and/or successors in
interest.
1.3 "Plaintiff' shall mean Jeanne M. Hicks and Tammy Lewis, individually and on
behalf of the Class and Class Members they represent.
1.4 "Person" shall mean an individual, corporation, partnership, association or other
entity.
1.5 "Taxpayers" shall mean any person who paid real or personal property taxes for
property within the City of Elkins for any of the tax years 1994 through 1999.
1.6 "Illegally Exacted Ad Valorem Property Taxes" shall mean all real and personal
property taxes from the taxpayers in excess of the amount allowed by ARK.
CONST. art. XIV, §14 (Amendment 59).
2
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2. ORDER AND JUDGMENT.
The Plaintiff and the City stipulate and agree to be bound by and will jointly request that
the court enter an order and judgment that will contain the following substance and matter:
2.1 Illegally Exacted Ad Valorem Property Tax Refunds.
a. Taxpayers who file a claim shall have the opportunity to receive a pro -
rata refund of all illegally exacted ad valorem taxes paid less the award of attor-
neys' fees set forth below.
b. The court shall appoint Special Master Sidney McCollum or other per-
son mutually agreed upon by the Plaintiff and the City to serve as special master
to supervise, as approved by the court, the method and procedure of the refund
process.
c. The expenses of administering the refund, including notice, and the
Special Master shall be borne by the City.
d. The refund process shall be administered by the County with a claims
process whereby Class Members may personally present a claim form. Out -of -
county taxpayers and those taxpayers that are physically unable to present the
form may have another person present the claim form. The Court shall appoint
George B. Morton, P.O. Box 399, Fayetteville, Arkansas, 72702, to so act if nec-
essary.
2.2 Attorneys' Fees of Plaintiff's Attorneys.
a. Attorneys for the Plaintiff shall request an award of attorneys' fees and
costs for representing the Class an amount of 33-1/3% of the illegally exacted ad
3
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valorem property taxes, subject to court approval, which shall be payable directly
to The Evans Law Firm, P.A., and Hirsch Law Firm, P.A., within 14 days of entry
of Order Approving Settlement. Defendant shall not object to the requested attor-
neys' fee of 33-1/3% of the fund.
2.3 Undistributed or Unclaimed Funds Paid Into General Fund of City.
a All illegally exacted ad valorem property taxes which remain after rea-
sonable effort, approved by the court, have been made to refund such monies to
the taxpayers shall be paid into the general fund of the City and may be used by
the City in any manner as its council may approve, including but not limited to,
any payments made by the City pursuant to this Stipulation or any order of this
court.
2.4 Stipulated and Agreed Amounts.
a. The Plaintiff and the City stipulate and agree that $213,469.50 is the
agreed total amount to be paid by the City; which amount is to be to the Class of
taxpayers (less court -approved legal fees) to all Class Members who file a claim
for refund. Refunds are to be paid 1/2 in June 2001 and 'h in June 2002 or sooner if
the City so desires.
2.5 Rollback of Millage.
a. The millage rate of the City has been 1.0 for both real and personal
property taxes before April 18, 2000. That on April 18, 2000, the City of
Fayetteville passed Ordinance 4244 which added 2 mills for a Senior Center for
the City of Fayetteville. Upon court approval of this settlement, the City's
millage shall roll back to 0.8 for both real and personal property subject to lawful
4
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adjustment in the future but does not affect the 2 mills added to the City's taxes
passed on April 18, 2000.
2.6 Full and Complete Discharge of all Class Claims Against the City.
a Any claims, demands, and causes of action of the Class, and each and
every member thereof, and/or their attorneys of any kind or nature in connection
with, directly or indirectly, any subject matter decided in this litigation concerning
ad valorem property tax for the years 1994 through 1999. A separate claim filed
in the Circuit Court of Washington County as CIV 98-1403 by the same Plaintiff
against the City for refund of property taxes for the tax year 1998 and thereafter
shall be dismissed as to the City with prejudice immediately after entry of the
order approving the settlement.
b. Washington County claims certain monies from the City for reim-
bursement from road tax millage. Plaintiff assigns whatever rights they have
thereto to Washington County and are not settling that claim which the County
may now have against the City.
3. PROCEDURES AND CONDITIONS TO EFFECT STIPULATION OF SETTLEMENT.
3.1 The Plaintiff, Plaintiff's counsel and the City will jointly request that the court
take the following actions and order the following events:
a. Enter an order for preliminary approval of:
i. Preliminary approval of this Stipulation and Settlement.
ii. Appointment of a Special Master for resolution of any
refund disputes as specified herein.
iii. Approving a Notice of Stipulation of Settlement and Hearing.
•
• •
iv. Find that notice by publication is the best notice practicable
under the circumstances and that Notice of Settlement should be published
twice in the Legal Notices Section of the Northwest Arkansas Times.
v. Set the date of August 31, 2000 as the cutoff date by which
any and all objections to this Stipulation of Settlement must be filed with
the Circuit Clerk, Washington County; and
vi. Set and conduct a hearing on September 5, 2000, at 9:30 a.m.,
in the Washington County Courthouse to consider final approval of the
Stipulation of' Settlement.
b. At the final approval hearing, consider and approve the amount of the
refund, the method and procedure of the refund process, approve the attorneys'
fees and expense award; and enter the court's Order Approving Settlement.
4. MISCELLANEOUS.
4.1 The undersigned attorneys of record for Jeanne M. Hicks and Tammy Lewis, for
themselves and all others similarly situated, warrant to the City that they have the
authority to settle the issue of attorneys' fees for all attorneys who represent or
represented said Plaintiff during the course of said litigation and that any and all
claims or liens of any nature regarding the payment of attorneys' fees, costs
and/or expenses are the sole responsibility of the undersigned attorneys of record
for Jeanne M. Hicks and Tammy Lewis, for themselves and all others similarly
situated, and said attorneys agree to indemnify and hold harmless the City from
any such claims, including but not limited to, the attorneys' fees, if any required
6
• •
in the City's defense of any action seeking additional attorneys' fees other than as
stipulated and agreed herein.
4.2 This Stipulation of Settlement shall be governed by and interpreted in accordance
with the laws of the State of Arkansas.
4.3 This Stipulation of Settlement constitutes the whole agreement between the
Plaintiff, Plaintiff's counsel and the City and supersedes all earlier agreements,
oral or written, if any. The parties hereto state and acknowledge that they have
not given or relied upon any representations, warranties, or promises that are not
set forth herein.
4.4 This Stipulation of Settlement may be modified, but such modification must be in
writing and approved by the parties hereto, or may be modified by court order.
IN WITNESS WHEREOF, this Stipulation of Settlement has been executed and entered
into as of this
day of , 2000 by the undersigned parties and counsel of rec-
ord for the parties hereto.
Parties:
Jeanne M. Hicks, for herself and all others
similarly situated taxpayers within the
City of Fayetteville, Arkansas
Tammy Lewis, for herself and all others
similarly situated taxpayers within the
City of Fayetteville, Arkansas
7