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County Attorney's Report 11. 1.

BCC Regular Meeting

Action

Meeting Date:	05/21/2020
Issue: Approval of Addendum to Settlement Agreement & General Release of All Claims in the case of Esc. Co. v. Spirit, Inc./Spirit Solutions, Inc.
From:	CHARLES PEPPLER
Department:	County Attorney's Office
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Approval of Addendum to Settlement Agreement & General Release of All Claims in the case of Esc. Co. v. Spirit, Inc./Spirit Solutions, Inc., Case No. 2019CA001402.

That the Board:
A. Approve the Addendum to Settlement Agreement and Mutual General Release of All Claims, which modifies the Settlement Funds Payment Schedule; and

B. Authorize the Chairman to execute the Addendum to the Settlement Agreement and Mutual General Release of All Claims.

BACKGROUND:

On February 20, 2020, this Board approved the Mediation Agreement reached between Escambia County and Spirit, Inc. and Spirit Solutions, Inc. (Spirit), regarding the dispute of the implementation of the case management software program in which Spirit agreed to pay the County $85,000.00 over the course of a year. On April 14, 2020, the Board approved the Settlement Agreement and Mutual General Release of all Claims which is the formal instrument implementing the mediated settlement.

William Nidiffer, as principal for Spirit, has requested that the original May 1^st installment payment of $5,000.00 be postponed to June 1, 2020, at which time Spirit will then be obligated to make a $10,000.00 payment to comply with the Settlement Funds Payment schedule. Mr. Nidiffer has represented that the COVID-19 pandemic has disrupted the business operations of Spirit such that vendors and clients have not made their payments on outstanding contracts. This has interrupted cash flow as represented by Mr. Nidiffer.

This office recommends a one-time-only extension for an initial payment of $10,000.00 to be made on June 1, 2020. No further extensions will be granted. The cure and notice procedure for defaulted payments will be invoked should any installment payments or the final balloon payment be defaulted.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

Addendum executed by Spirit to be submitted to Board for approval.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Addendum to Settlement Agreement and Mutual General Release of All Claims