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HomeMy WebLinkAbout2025, Settlement Agreement, 17-04475 / 18-2-01298-8 KNTSETTLEMENT AGREEMENT JAI 0 2 2025 17-04475 / 18-2-01298-8 KNT cIAUBURN LEGAA L DEPARIMETIlriEf\IT This Agreement is entered into by and between the CITY OF AUBURN, Washington, a municipal corporation of the State of Washington ("the City") and Zhen Hong Wu ("Claimant"). RECITALS Zhen Hong Wu owns real property located at 18517 131s' Ave. SE Renton, Washington (King County Tax Parcel No. 098421055009). As well, Zhen Hong Wu owns a Toyota Sienna (VIN 5TDYK3DCXFS645439) and Ford Mustang (VIN 1FA6P8TH1G5270802) (cumulatively, the "Property"). On or about September 12, 2017, the Auburn Police Department executed a search warrant at the above -referenced property under APD case number 17-04475. On or about, September 12, 2017, the City seized a Toyota Sienna (VIN 5TDYK3DCXFS645439) and Ford Mustang (VIN 1FA6P8TH1G5270802) under case number 17-04475. The vehicles were seized pursuant to RCW 69.50.505(1)(d) as there was evidence to believe that the vehicle was used, or intended for use, in a manner that facilitated the sale, delivery and/or receipt of raw materials, products, and equipment of any kind which were used, or intended for use, in manufacturing, compounding, processing, delivering, importing, or exporting a controlled substance. The City also seized assorted amounts of funds: one thousand six hundred twenty- three dollars and 051100 ($1623.05); two thousand nine hundred eighty-one dollars and 36/100 ($2,981.36); and seventeen thousand eight hundred, eighty-nine dollars and 01/100 ($17,889.01) in U.S. currency as there was probable cause to believe that the money was furnished or intended to be furnished by any person in exchange for a controlled substance; and/or was used or intended to be used to facilitate any violation of Chapter 69.50 RCW. On February 1, 2019, the City filed a civil action in the King County Superior Court to seize the Real Property, which action is currently pending under Cause No. 18-2-01298- 8 KNT. The City and Claimant desire to settle this matter and have agreed to the disposition of the Property in consideration of the uncertainty of litigation, and the time and expense associated with proceeding to a trial. Pagel of 5 Settlement Agreement Zhen Hong Wu AGREEMENT For good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the City and Claimant agree as follows: 1. Good Faith Seizure. There was probable cause sufficient for the seizure of the above described real and personal property. Seizure of the property was lawful, and notice of the seizures followed due process. It is undisputed that the Auburn Police Department acted in good faith in pursuing the seizure and intended forfeiture of the real and personal property. 2. Property Awarded to ft City. Through operation of this Settlement Agreement the City is awarded and the Claimant agrees to forfeit to the City his right, title, and interest to the following personal property: • 2016 Toyota Sienna VIN 5TDYK3DCXFS645439 • 2016 Ford Mustang VIN 1FA6P8TH1G5270802 • $22,493.42 in US Currency Collectively, the vehicles and the cash are the "Personal Property." Claimant agrees to provide and execute any document reasonably necessary to facilitate a transfer of the Personal Property to City. The City agrees to take said Personal Property in "as -is" condition and Claimant gives no warranties and makes no representations regarding the condition of the Personal Property. 3. Payment of Settlement Funds. As additional consideration for the provisions of this Agreement, Claimant agrees to pay the City the sum of Twenty -Five Thousand Dollars ($25,000.00) in new funds (the "Settlement Funds"). The Settlement Funds shall be paid as follows: (i) Claimant shall pay the sum of Fifteen Thousand Dollars ($15,000.00) to the City in good funds by wire transfer, cash, or cashier's check payable to City of Auburn and delivered to the City Attorney's Office within ten (10) business days of the execution of this Agreement by the Parties. (ii) Claimant shall pay the balance of the Settlement Funds, or the sum of Ten Thousand Dollars ($10,000), plus interest accruing at the judgment rate of twelve percent (12%) on the unpaid principal balance, from the date of mutual execution of this Agreement until paid by Claimant or upon the sale of Claimant's residential real property commonly known as 18517 131St Ave. SE Renton, Washington (King County Tax Parcel No. 098421055009) (the "Renton Property"), whichever occurs first. Claimant's obligation to pay the balance of the Settlement Funds described herein will be Page 2 of 5 Settlement Agreement Zhen Hong Wu secured by a deed of trust on the Renton Property, in the form attached hereto as Exhibit A (the "Deed of Trust"). Claimant must return the executed original of the Deed of Trust to the City, along with this Agreement. The City will then record the Deed of Trust against the Renton Property. 4. Mutual Releases and Dismissal of Actions. Within ten (10) business days following execution of this Agreement by all parties, the Claimant will dismiss all administrative actions contesting the seizure of the above listed personal property (vehicles). Within ten (7) business days following receipt of Claimant's initial $15,000 payment of the Settlement Funds, according to section 3 of this Agreement and receipt of the agreed orders dismissing the personal property actions, the City will file a Motion and Order of Dismissal with prejudice and without costs in King County Cause NO. 18-2- 01298-8 KNT. Once the Deed of Trust has been recorded, the City will release the recorded lis pendens against the Renton Property. In partial consideration of this Agreement, the Claimant releases and forever discharges the City, its elected officials, employees, representatives, and agents from every claim, demand, and cause of action whatsoever, of any kind and nature, whether presently known or unknown, suspected or unsuspected, arising or alleged to have arisen or which shall arise hereafter as a result of the City's seizure of Claimant's Personal Property or the Real Property, including any claim for deprivation, encumbrance, slander, or conversion of property and any claim for attorneys' fees and costs. In partial consideration of this Agreement, the City releases any additional claims of forfeiture and/or other claims arising from Auburn Police Department Investigation No. 17-04475, to the extent they are not incorporated into this Agreement. This Agreement shall be the final agreement related to any forfeiture actions involving Claimant under Chapter 69.50 RCW related to APD No. 17-04475. 5. Vehicle Records. Within five days of execution of this Agreement, Claimant shall deliver to City at 25 West Main Street, Auburn, WA, 98001, all of the following that are in his possession: car titles and registration. 6. Waiver of Future Defenses. In consideration of the execution of this Agreement, Claimant agrees to waive any right to assert an innocent owner defense or claim innocent ownership of 18517 131" Ave. SE Renton (Tax Parcel No. 098421055009) in any action to forfeit the property brought by the City of Auburn and/or the Auburn Police Department. This waiver only applies to action related to the property 18517 131" Ave SE Renton (Tax Parcel No. 098421055009) and to actions related to the City of Auburn. Page 3 of 5 Settlement Agreement Zhen Hong Wu N 7. Indemnification. The Claimant shall indemnify, defend, and hold harmless the City, its agents, and employees from and against any and all liability arising from this forfeiture action and sale of the Personal Property. In the event that the City shall elect to defend itself against any claim or suit arising from this Agreement, the Claimant shall, in addition to indemnifying and holding the City harmless from any liability, indemnify the City for any and all expenses incurred by the City in defending such claim or suit, including reasonable attorneys' fees. 8. Reliance Upon Own Judgment and Counsel. The City and Claimant have read this Agreement and have knowingly, intelligently, and voluntarily entered into said Agreement with full knowledge of the consequences of such agreement. The City and Claimant agrees that each of them was represented by counsel or had the opportunity to independently consult with legal counsel of their choosing. As such, this Agreement shall not be construed against either party as the drafter. 9. Entire Agreement. This Agreement contains the entire agreement between the parties, and no other agreements, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or bind any of the parties. Either party may request changes to the Agreement. Proposed changes which are mutually agreed upon shall be incorporated by written amendments to this Agreement. 10. Binding on Successors and Assigns. All the terms and conditions of this Settlement Agreement and its exhibits shall be binding upon and inure to the benefit of the Claimant and the City and their respective heirs, successors, agents, and assigns. 11. Counterparts. This Settlement Agreement may be executed by multiple counterparts, each of which shall be deemed an original, binding on the parties to the Agreement, and all of which shall constitute one final agreement. 12. Admission of Liability and Limitations. To the extent necessary to provide a factual basis for this Agreement, the Claimant admits to his conviction for Solicitation to Commit Violation of the Uniform Controlled Substances Act for Manufacture of Marijuana as convicted in King County Superior Court Case No. 19-C-05574-6 KNT. This Agreement is a compromise and settlement of potential and/or disputed claims, and neither this Agreement nor any action taken to carry out this Agreement may be construed as, or used as an admission or concession of, or constitute a finding of, liability, fault, wrongdoing, or culpability outside of the acknowledgment of the conviction list above. This Agreement itself may be used in future civil actions that may arise unrelated to this Seizure. 13. Attorneys'. The City and the Claimant shall pay their own attorney's fees, costs, and expenses incurred in connection with the superior court and administrative actions. In the event of a breach or a default under this Settlement Agreement, the Page 4 of 5 Settlement Agreement Zhen Hong Wu breaching or defaulting party agrees to pay all attorneys' fees and costs incurred by the prevailing party in collecting amounts owed or through enforcing the agreement. SIGNATURES Approved as Legal Form: Taryn Jones, WSBA 52647 Attorney for City of Auburn sZ6 KQ (Boris Petrenko, WSBA# 34931 Attorney for Claimant DATE I-�•25 /z 5o L2-OW__ am a court certified translator i94, A nnd hereby certify and declare under penalty of perjury under the laws of the State of Washi gton that I have translated this agreement for Claimants from English into k4i W, ii l ember, Z Dated this IV day of 2024 at J� ' �, Washington. pt'z— „ /Z -�� / 1 Print Name Signature Page 5 of 5 Settlement Agreement Zhen Hong Wu