16-1004_CEFALI, MICHAEL_Settlement AgreementSETTLEMENT AGREEMENT
BETWEEN
CITY OF SAN JUAN CAPISTRANO
AND
MICHAEL CEFALI
This Settlement Agreement ("Agreement") is made as of October 4, 2016, for
reference purposes only, between the City of San Juan Capistrano, a California municipal
corporation and general law city (the "City") and Michael Cefali, an individual
("Cefali") (collectively, the "Parties"), with respect to the following facts:
A. Section 4-6.311, subdivision (a) of the City's Municipal Code states, "It
shall be unlawful for any person to park a vehicle upon any roadway for the
principal purpose of. (a) Displaying such vehicle or property thereon for sale,
hire, or rental...." (the "Ordinance").
B. On or about May 3, 2016, Cefali was issued a parking citation (the
"Citation") for allegedly violating the Ordinance by placing a 8.5 x 1 I" sign on his
vehicle, advertising the vehicle for sale, on a City street. Cefali paid a fifty dollar
($50.00) fine for such Citation.
C. On September 15, 2016, Cefali filed an action in the United States federal
court, entitled Michael Cefali v. City of San Juan Capistrano, U.S. District Court
Case No. 8:16-cv-1698 (DFMx) alleging that the City's Ordinance is
unconstitutional, both facially and as applied to Cefali (the "Action").
D. The City and Cefali wish to resolve the Action, as set forth more fully
below.
IN LIGHT OF THE FOREGOING RECITALS, IT IS MUTUALLY AGREED
THAT:
1. Cessation of Enforcement of Ordinance. The City shall immediately cease
enforcement of the Ordinance.
2. Repeal of Ordinance. The City Council shall, within thirty (30) days
following the date that this Agreement is fully executed (the "Effective Date"), conduct a
second reading and thereby adopt an ordinance repealing the Ordinance. A draft of the
ordinance repealing the Ordinance is attached hereto as Exhibit "A", and incorporated by
reference herein.
3. Reimbursement of Citation Fine. The City shall, within fifteen (15) days
following the Effective Date, pay to Cefali the amount of fifty dollars and 00/100
($50.00), as reimbursement of the fine paid by Cefali for the Citation.
6114 7.60009,292 7685 2.2
4. Payment of Cefali's Attorneys' Fees. The City shall, within fifteen (15)
days following the Effective Date, pay Cefali's attorneys' fees and costs, in the amount of
Nine Thousand Dollars and 00/100($9,000.00), to Pacific Legal Foundation.
5. Section 1542 Waivers. Civil Code section 1542 states: "A general release
does not extend to claims which the creditor does not know or suspect to exist in his or
her favor at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor." This Agreement constitutes a
compromise of disputed claims, and nothing contained herein constitutes an admission of
fault or liability by any party with respect to the facts or legal claims and defenses that
each could have raised in the Action.
6. Cefali Release. Except as set forth in this Agreement, Cefali, on behalf of
himself, his heirs, agents, executors and assigns, hereby releases the City, its council
members, commissioners and employees, and their agents and attorneys from any and all
claims, demands, liabilities, obligations, costs, expenses, fees, actions, and/or causes of
action arising out of, or connected to, the Action, whether known, unknown or suspected
and Cefali hereby waives the provisions of Civil Code section 1542. Within thirty five
(35) days following the last of the items in Sections 2 through 4 above to occur, Cefali
shall file, or cause to be filed, a dismissal of the Action, with prejudice.
7. City Release. Except as set forth in this Agreement, the City releases
Cefali and his heirs, agents, executors and assigns from any and all claims, demands,
liabilities, obligations, costs, expenses, fees, actions, and/or causes of action arising out
of, or connected to, the Action, whether known, unknown or suspected and the City
hereby waives the provisions of Civil Code section 1542.
8. Successors, Third Parties. This Agreement is entered into solely for the
benefit of the parties hereto and their successors, transferees and assigns. Other than the
parties hereto and their successors, transferees and assigns, no third party shall be entitled
to directly, or indirectly, base any claim, or to have any right arising from, or related to,
this Agreement.
9. Further Assurances. The parties shall act in good faith and shall take all
further actions reasonably necessary to effectuate the letter and the spirit of this
Agreement.
10. Choice of Law. This Agreement and all rights and obligations arising out
of it shall be construed in accordance with the laws of the State of California.
11. Venue Selection. Any litigation arising out of this Agreement shall be
conducted only in the Orange County Superior Court.
2
61147.60009\29276852.2
12. Agreement Fees Clause. The prevailing party in any litigation brought to
enforce or interpret this Agreement shall be entitled to recover its attorneys' fees and all
costs of litigation including, but not limited to, expert witness fees, in addition to any
other relief to which it may be entitled.
13. Integration. This Agreement contains the entire agreement and
understanding concerning the Action and supersedes and replaces all prior negotiations or
proposed agreements, written or oral. Each of the parties hereto acknowledges that no
other party, nor the agents nor the attorneys for any party, has made any promise,
representation or warranty whatsoever, express or implied, not contained herein, to
induce the execution of this Agreement and acknowledge that this Agreement has not
been executed in reliance upon any promise, representation or warranty not contained
herein.
14. Amendments. This Agreement may not be amended except in a writing
signed by all the parties hereto.
15. Investig_ation/Risks. The parties to this Agreement hereby acknowledge
that they have undertaken an independent investigation of the facts concerning the
Action. The parties expressly assume the risk that the true facts concerning the foregoing
may differ from those currently understood by them.
16. Advice/Consent of Counsel. The parties to this Agreement hereby
acknowledge that they have executed this Agreement with the consent, and upon the
advice, of their own attorney.
17. Authority. Each individual signing this Agreement represents and warrants
that he or she has been authorized to do so by proper action of the party on whose behalf
he or she has signed.
18. Counterparts. This Agreement may be signed in one or more counterparts
and, when all parties have signed the original or a counterpart, such counterparts together
shall constitute one original document.
[signatures on following page]
3
61147.60009\29276852.2
SIGNATURE PAGE TO
SETTLEMENT AGREEMENT
BETWEEN
CITY OF SAN JUAN CAPISTRANO
AND
MICHAEL CEFALI
MICHAEL CEFALI
By:
Michael Cefali
October 7- , 2016
APPROVED AS TO FORM:
By: -
Lawrence G. Salzman, Legal Counsel
611.17.6000929276852 2
CITY OF SAN JUAN CAPISTRANO
By:
�Ll
13 en Si el ity anager
l
October /0 , 2016
APPROVED AS TO FORM:
AT
am
Jeffrey S. Ballinger, City Attorney
EXHIBIT "A" TO
SETTLEMENT AGREEMENT
BETWEEN
CITY OF SAN JUAN CAPISTRANO
AND
MICHAEL CEFALI
Draft Ordinance
61147.60009\29276852.2
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
JUAN CAPISTRANO, CALIFORNIA AMENDING SECTION 4-
6.311 OF THE SAN JUAN CAPISTRANO MUNICIPAL CODE
REGARDING PARKING OF VEHICLES FOR CERTAIN
PURPOSES
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 4-6.311 of the San Juan Capistrano Municipal
Code is hereby amended to read as follows:
4-6.311. Parking for maintaining or repairing vehicles.
It shall be unlawful for any person to park a vehicle upon any roadway for
the principal purpose of:
(a) Painting, greasing, or repairing such vehicle or property thereon,
except repairs necessitated by an emergency; or
(b) Washing or polishing such vehicle, or any part thereof, when a
charge is made for such service."
SECTION 2. CEQA
The City Council finds that this ordinance is not subject to the California
Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections
15060(c)(3) because this activity is not a project as defined by Section 15378 of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and
pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with
certainty that it will not have a significant effect or physical change to the
environment.
SECTION 3. Severability
If any section, subsection, subdivision, sentence, clause, phrase, or
portion of this Ordinance for any reason is held to be invalid or unconstitutional
by the decision of any court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of this Ordinance. The City Council
hereby declares that it would have adopted this Ordinance, and each section,
subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective
of the fact that any one or more sections, subsections, subdivisions, sentences,
clauses, phrases, or portions thereof be declared invalid or unconstitutional.
ATTACHMENT 1
SECTION 4. Effective Date
This Ordinance shall take effect thirty (30) days after its final passage and
adoption. A summary of this Ordinance shall be published and a certified copy
of the full text of this proposed Ordinance shall be posted in the office of the City
Clerk at least five (5) days prior to the City Council meeting at which this
proposed Ordinance is to be adopted. Within fifteen (15) days after adoption of
this Ordinance, the City Clerk is instructed to publish a summary of this
Ordinance with the names of those City Council members voting for and against
this Ordinance and the City Clerk shall post in the office of the City Clerk a
certified copy of the full text of the adopted Ordinance along with the names of
those City Council members voting for and against this Ordinance or amendment
at least until the day of such publication.
PASSED, APPROVED AND ADOPTED this day of
.2016.
ATTEST:
MARIA MORRIS, CITY CLERK
PAM PATTERSON, Esq., MAYOR
2