The following is a brief history of the events leading up to the Settlement Agreement.

• On April 21, 1993, the School Board entered into an Owner-Contractor Agreement with Morganti Florida, Inc., a general contractor, to build New Glades Central High School.
• Morganti Florida retained various subcontractors to perform work on the Project.  Poole & Kent was among those subcontractors.  Poole & Kent retained Wilbur Plumbing as a plumbing subcontractor.
• A storm-water piping system was installed in seven of the Project’s nine total buildings.  Water, which collects on the buildings’ roofs when it rains, travels through the system’s cast-iron pipes located in the Project’s ceilings and walls and is dispensed into an underground drainage system.  Individual sections of the system are connected by “coupling assemblies,” which Sunshine Plumbing supplied.  Approximately 1400 coupling assemblies were installed throughout the Project.  The Owner-Contractor Agreement called for the coupling assemblies to meet certain specifications.
• The School Board initiated a lawsuit in July 2005, against Morganti Group, Inc, and Morganti Florida, Inc., et al for breach of contract.  The lawsuit is styled The School Board of Palm Beach County, Florida v. Morganti Group, Inc, and Morganti Florida et al No. 50 2005 CA 006997 XXXXMB.  The School Board hired Holland and Knight, LLP, as its legal counsel to fully represent the Board in this litigation matter.
• Subsequently, the School Board amended its Complaint.  Although Morganti filed a Motion to Dismiss and Motion for Summary Judgment against the School Board’s Second Amended Complaint, the School Board prevailed and Morganti’s Motions were denied.
• Morganti Florida filed a third-party complaint against the mechanical sub-contractor, Poole & Kent; Poole & Kent then filed a fourth-party complaint against the plumbing sub-contractor, Wilbur Plumbing; and Wilbur Plumbing filed a fourth-party complaint against Sunshine Plumbing.
• Federated Mutual Insurance Company provides insurance for Wilbur Plumbing and Sunshine Plumbing and has agreed to indemnify Poole & Kent.
• The Parties have agreed to settle the claims among themselves in the lawsuit.
• The outside counsel, Holland and Knight, LLP, has negotiated the settlement.
• The following are essential elements of the settlement between The School Board of Palm Beach County, Florida, The Morganti Group Inc., Morganti Florida Inc., The Poole & Kent Company, Wilbur Plumbing Inc., Sunshine Plumbing Supply Inc., and Federated Mutual Insurance Company:

• Morganti Florida Inc. agrees to pay the School Board Fifty Thousand Dollars; and Federated Mutual Insurance Company agrees to pay the School Board One Million Fifty Thousand Dollars;
• Federated and Morganti Florida agree to  pay the School Board the sum total of One Million One Hundred Thousand Dollar($1,100,000.00) within 30 days of the School Board’s approval of the Settlement Agreement;
• The School Board and Morganti Group, Inc., Morganti Florida, Inc., The Poole & Kent Company, Wilbur Plumbing, Inc., Sunshine Plumbing Supply, Inc., and Federated Mutual Insurance Company (the Defense Group) agree to enter into the settlment agreement and to enter into mutual limited releases between the School Board and the Defense Group for any and all liabilities, claims, demands, actions, and causes of action that were asserted or could have been asserted arising out of the coupling assemblies of the stormwater piping system in the lawsuit styled School Board of Palm Beach County, Florida v. Morganti Group Inc. et. al. No. 50 2005 CA 006997 XXXX MB. Excluded from the releases are third party personal injury claims, third party property damage claims and claims for latent defects that were not known nor should have been known as of April 30, 2009;
• The Mutual Limited Releases will be executed prior to the payment of the settlement sums and held in trust by Holland & Knight, LLP;
• After the checks for the settlement sums are received, the Mutual Limited Releases will be exchanged and the parties to the lawsuit will file a joint motion with the Court seeking approval of the Settlement Agreement and dismissing the lawsuit with prejudice, providing that each party bears its own fees and costs and the court retains jurisdiction solely to enforce the settlement agreement.

Gerald A. Williams, Esq.; Chief Counsel williamsg@palmbeach.k12.fl.us

Kathelyn Jacques-Adams, Esq.; Senior Counsel