HomeMy WebLinkAboutResolution 4916-03-2018 A Resolution
NO. 4916-03-2018
AUTHORIZING A LAWSUIT ENTITLED
CITY OF FORT WORTH V. E-WATCH CORPORATION
WHEREAS, on December 31, 2013, the City entered into City contract no. 45257 with the e-
Watch Corporation ("e-Watch") to supply and install video management software; and
WHEREAS,on August 27,2014,the City was sued by 3`d Eye Surveillance,claiming the e-Watch
security system used by the City infringed on their patent; and
WHEREAS, on November 18, 2014, the City and e-Watch executed amendment A-2 to City
contract no. 45257, which provided that the City was to maintain sole responsibility for conducting the
defense and settling said lawsuit and would assume the responsibility of paying costs associated with the
suit as they arose; and
WHEREAS, amendment A-2 to City contract no. 45257, also expressly provided that e-Watch
would indemnify the City and reimburse the City for legal fees and any settlements paid as a result of said
lawsuit; and
WHEREAS, on August 9, 2016, the City settled said lawsuit for a total of$26,000; and
WHEREAS, the City paid a total of$168,390.26 in legal fees to defend said lawsuit; and
WHEREAS, per the terms of the November 18, 2014 contract amendment, e-Watch now owes
the City a total of$194,320.26; and
WHEREAS, e-Watch has refused to honor its contractual obligations and reimburse the City for
the costs of litigation; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS,THAT:
1.
The City Council authorizes the filing of a lawsuit against a-Watch Corporation.
Adopted this 20th day of March, 2018. UF FOi?i ,,
ATTEST.
By: -- — -- -- ;
Mary J. Kay r, y S retary ...
�AS
ORTWO
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/20/2018 Resolution No.4918-03-2018
DATE: Tuesday, March 20, 2018 REFERENCE NO.: **G-19241
LOG NAME: 12E-WATCH LITIGATION
SUBJECT:
Adopt Resolution Authorizing the City's Lawsuit Against the a-Watch Corporation in Tarrant County, Texas
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution authorizing the City Attorney's
office to file a lawsuit against a-Watch Corporation in Tarrant County, Texas.
DISCUSSION:
On December 31, 2013, the City entered into a contract with the a-Watch Corporation to supply and install
video management software to fulfill the functions of the City's Consolidated Video Management
System. On August 27, 2014, the City was sued by 3rd Eye Surveillance, LLC, who claimed that the e-
Watch system used by the City infringed on their patent. On November 18, 2014, the City and a-Watch
executed contract amendment No. 45257 A-2, which provided that the City retained sole responsibility for
defending and settling the lawsuit, and would pay necessary costs as they arose, while a-Watch would
indemnify the City and reimburse the costs of the lawsuit, including legal fees and settlement payments.
The City settled the lawsuit for$26,000.00 and paid $168,390.26 in legal fees. Therefore, a-Watch owes
the City $194,320.26. The a-Watch Corporation has refused to pay.
Accordingly, it is recommended that the City Council adopt the attached Resolution authorizing the filing of
this lawsuit in Tarrant County, Texas.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as appropriated,
of the Risk Financing Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accoun Project Programctivity Budget Reference # moun
ID ID 1A Year (Chartfiield 2)
Logname: 12E-WATCH LITIGATION Page I of 2
FROM
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID I Year Chartfield 2
601111 0147120 15520114 1 1 1 2018 1 1$1,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Sarah Fullenwider (7623)
Additional Information Contact: Stephen Cumbie (6799)
Logname: 12E-WATCH LITIGATION Page 2 of 2