1955-880rx.511
RESOLUTION N0. 880
RESOLUTION ACCEPTIlVG INSURANCE ON TERRY EXCAVATING COMPANY CONTRACT,
' AND DIRECTING PllYMENT OF BALANCE OF CONTRACT SUM IN ESCROW
i
' WEIEREAS, on July 28, 1951, a contract was executed by and between the Vil.].age of
Richfield and Wm. V. Terry Excavating Co., Inc. for the construction of Richfield
Village Projects Nos. 26l~, 268, 269, 271, 272, 273, 275, and 290; for the construction,
by the latter, of storm sewers in this Village and
WHEREAS, one of the provisions of the said contract required the said contractor
to provide a policy of insurance indemnifying the Village of Richfield and all its
officers, agents and employees from all property or personal injury claims arising
out of the doing of the work provided for in said contract (Paragraph 59 of the
General Conditions), and
WHEREAS, Wm. V. Terry Excavating Co., Inc. has failed to provide such insurance
except as hereinafter mentioned, and
WHEREAS, subsequent to July 28, 195t~, one Herbert Gaylord instituted an action
against the Village of Richfield and said Wmo V. Terry Excavating Co., Inc. for per-
sonal injuries and property damage, claiming liability as a consequence of the con-
dition of the public streets in the area in which said Wm. V. Terry excavating Go.,
Inc. was engaged in doing the work provided for in said contract, which lawsuit is
still pending and the outcome of which is in doubt, and
WHEREAS, on or about July 6, 1955, the Fire l-,ssociation of Philadelphia, surety
on the public contractor's surety bond provided by Wm. V. Terry Excavating Go., Inc.
in connection with said contract, filed an assignment with the Village of Richfield
which is now on file in the .office of the Village Clerk and bears Clerk's File No.
3152, and _
WHEREIiS, on or_about July 22, 1955, the hmerican Automobile Insurance Company,
which claims to be public liability insurer of said Wm. V. Terry Excavating Co.,
Inc. on said construction contract, filed an assignment with the Village of Richfiald
which is now on file in the office of the Village Clerk and bears Clerk's File No.
3153, and
WHEREI~S, both Wm, V. Terry Lxcavating Co., Inc. and the Fire t'-.ssociation of
Philadelphia have thus far failed to provide the insurance required to indemnify the
Village of Kichfield as provided in said construction contract, and
WHEREAS, the I;rnerican Automobile Insurance Company now agrees to provide said
insurance, by the issuance of an insurance policy No. L 3b4 1535, which is now on
file in the office of the Village Clerk and bears Clerk's File No. 315Lt, and
WHEREAS, the I~merican Automobile Insurance Company further agrees to accept
the defense of the aforementioned lawsuit unconditionally and immediately for and
on behalf of the Village of Richfield, and
WHEREi~S, except for the providing of insurance said construction contract has
been fully performed by Wm. V, Terry Excavating Co., Inc. and there is an unpaid
sum of ~17,l~.l~1i..09 now being held by the Village of Richfield, pending the providing
of such insurance, and
WHEREAS, as a condition to providing the insurance and accepting the defense
of the 1a~suit as aforesaid the Iunerican Automobile Insurance Company requests that
the Village of Richfield, through its Village Council, consent to said assignment
~.~~ i
of July 22, 1955, and said company further xequests that the unpaid sum on said con-
tract be-deposited with the District Court of Hennepin County, Minnesota, any expense
thereof to be paid by the American Automobile Insurance Company.
WHEREAS, this Council is of the opinion and belief that the providing of such
insurance and the accepting of the defense of said lawsuit is a valuable and material
part of said construction contract, which it has heretofore been unable to obtain,
and
WHEREF.S, the money due on said contract appears to be claimed adversely by the
Fire Association of Philadelphia and the I;merican Automobile Insurance Company and
may also be claimed by in~m. V. Terry Excavating Co., Inc. and the right thereto as
among such claimants or potential claimants is in doubt, but this Council desires
to obtain performance of said construction contract in all respects and to make
payment therefor without prejudicing any of the rights of any of said claimants or
potential claimants of said money.
NOW, SfiEREFORE, BE IT RESOLVED by the Village Council of the Village of Richfield,
Hennepin County, Minnesota, as follows; .
1. The aforementioned assignment of July 22, 1955, to the American Automobile
Insurance Company to provide tho aforementioned policy of insurance and to accept
unconditional defense of the aforementioned lawsuit is hereby accepted.
~ 2. Thr~ aforementioned assignment of July 22, 1955, to the ~'xmerican Automobile
Insurance Company is hereby consented to, according to its terms.
3. The Village Clerk is hereby authorized and directed to make final payment
on the aforementioned construction contract in the amount of ~017,4lt~..09 into the
.District Court of Hennepin County.
~.. The Vi11ge Mayor, Manager, Finance Officer and Attorney are hereby authorized
to take such action as is necessary to effect such payment into said court, with the
expense thereof if any, to be paid by the 1-;merican ~9utomobile Insurance Company and
this resolution shall be conditioned upon the acceptance of custody of said sum, by
said Court,. as herein provided.
Adopted by the Village Council of the Village of Richfield this 22nd day of August,
19.' • _ .
A TTEST; ` , l~
~'r /s" ~-
~ red 0. ittell
Paul .Haug ayor
Clerk
"~-~
0. V n evelen
- Manager