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Home My WebLink About2007 05 14 Consent 202 Brown & Brown, Inc. CITY OF WINTER SPRINGS 051407 _Commission Agenda _ Item 605_Brown and Brown Inc Settlement COMMISSION AGENDA ITEM 202 Consent X Informational Public Hearin Re ular May 14, 2007 Regular Meetmg Mgr. ;t--'/ Dept. Authorization REQUEST: City Manager requesting the City Commission to accept settlement of a lawsuit filed by the State Attorney General against Brown & Brown, Inc. and authorize the City to execute a release of future claims against Brown & Brown, Inc. PURPOSE: This agenda item is needed to accept settlement of any claims the City Manager has against Brown & Brown, Inc. CONSIDERATIONS: The Attorney General filed suit against Brown & Brown, Inc., an insurance company doing business throughout Florida, for unlawful acts on the part of Brown & Brown, Inc. The $1.8 million settlement is being shared by all cities covered by Brown and Brown, Inc. This involved property liability insurance that the City purchased from the Coregis insurance brokerage firm years ago. FUNDING: Not Applicable. RECOMMENDATIONS: It is recommended that the City Commission authorize the City Manager to execute a settlement offer and release of future claims against Brown and Brown, Inc. in the amount of $2,284.91. ATTACHMENTS: 1. Release 2. Attorney General letter COMMISSION ACTION: OFFICE OF THE ATTORNEY GENERAL BILL McCOLLUM ATTORNEY GENERAL STATE OF FLORIDA LAURA DAUGHERTY ftIlCj;IVED Research Economist Antitrust Division MAY O. i. 2"07 PL-Ol, The Capitol ., " Tallahassee FL 32399-1050 Telephone (850) 414-3855 CITY ~fn~~T6i~~::INGS Fax (850) 488-9134 May 1, 2007 Mr. Michelle Greco Director of Finance City of Winter Springs 1126ESR434 Winter Springs, FL 32708 Dear Mr. Greco, The Florida Attorney General, along with the Florida Department of Financial Services and the Office of Insurance Regulation, entered into a settlement agreement with Brown & Brown, Inc. in December 2006. A copy of the settlement agreement is available at http://mvfloridalega1.com/ webfiles.nsf/WF /MRA Y -6W ASVD/$file/Brown&Brown settlement.pdf As part of the settlement agreement, Brown & Brown, Inc. has agreed to pay $1,800,000.00 to its Florida governmental entity customers. I understand that your organization was a customer of Brown & Brown, Inc. at some point between 1998 and 2005, thus your entity is entitled to share in this money if it signs a release. A copy of the release (Exhibit "A") is enclosed for your review. By signing the release and accepting the settlement amount I reflected in Exhibit "A," your organization will waive any claims it may have concerning Brown & Brown's receipt of undisclosed compensation from insurers. Please feel free to consult with your own attorney before deciding whether to accept the settlement amount, as this office cannot offer any legal advice. I have provided a self-addressed, stamped envelope for you to return the executed Exhibit "A" or inform our office of your decision to not accept the settlement amount. I need to hear from you by no later than May 25, 2007. Please feel free to call me if you have any questions. Sincerely, d;L n),~ Laura Daugherty Enclosures I We have utilized Brown & Brown, Inc. data for the premiums paid by its Florida governmental entity policyholders during the relevant time period to determine the pro rata share of the $1,800,000.00 for each governmental entity. EXHIBIT A RELEASE BACKGROUND: By virtue of a settlement, Brown & Brown, Inc. ("Brown") has paid a sum of money for the benefit of its Florida governmental entity policyholder clients to resolve the investigation conducted jointly by the Florida Department of Financial Services ("Department"), the Florida Department of Legal Affairs, Office of the Attorney General, and the Office of Insurance Regulation regarding undisclosed compensation allegedly received by Brown from insurers on accounts such as yours. Brown has admitted no wrongdoing or liability in the settlement. Please be advised that only those Florida governmental entity policyholder clients who execute this Release are entitled to receive payments under the settlement. RELEASE: For and in consideration ofthe approximate sum of $2,284.91, and other good and valuable consideration in hand paid by Brown to the Department for distribution to the Releasor, the Releasor, by executing this Release for itself and its respective divisions, subdivisions, officials, officers, executors, attorneys, administrators, agents, successors, and assigns, hereby waives, releases, remises, forgives, acquits, and forever discharges Brown, including any parent, subsidiary, or affiliated company of Brown (expressly including, but not limited to Program Management Services, Inc. ["PMSI"]), and their respective predecessors, successors, assigns, former and current officers, directors, agents, representatives, officials, attorneys, and employees of and from all manner of actions, cause and causes of action, suits, damages, whether compensatory, consequential or punitive, awards, claims, demands, and judgments whatsoever, whether sounding in contract, quasi-contract or tort, in law or in equity, or any right of participation in any class action, which Releasor now has against Brown or which it ever had, or which Releasor's successors or assigns hereafter can, shall or may have regarding Brown's receipt of undisclosed compensation from insurers through the date of the execution of this Release. Releasor acknowledges that, in making this release, Brown does not admit any liability to Releasor. IN WITNESS WHEREOF, the undersigned has caused this RELEASE to be executed ,2007. RELEASOR: Public Entity: Tax ID#: Mailing Address: Title: Signature: Print Name: