HomeMy WebLinkAboutSettlement AgreementSETTLEMENT AGREEMENT
This Settlement Agreement ("Agreement's is executed by and between the City of Carmel,
Indiana (the "City"), Lucas Family Living Trust (the "Trust"), Lucas Oil Products, Inc. ("Lucas
Oil's, Terina Burks -Perry (`Burks -Perry', and Michelle McWilliams (McWilliame
(collectively, the Trust, Lucas Oil, Burks -Petry, and McWilliams, are "Lucas Parties"). The City
and Lucas Parties are individually a "Parry" and collectively "Parties."
A. The underlying dispute revolves around the real property and improvements owned by the
Trust, serving as the private residence of Forrest and Charlotte Lucas (the "Lucases"),
formerly known as the Hilbert Estate and the Irsay Estate, now known as the Lucas Estate,
and located at 1143 West 1161s Street, Cannel, Indiana and all adjacent property owned by
the Lucases and/or one of their Trusts (the "Lucas Estate").
B. The Lucases and the Trust have invested millions of dollars to construct, restore, renovate,
modify, upgrade, and improve various aspects of the Lucas Estate including, but not limited
to, the grounds, the residence, the residence patio, the sports bar, the pool house, the
gatehouse, the indoor kitchens, the outside kitchen, the tennis courts (anchored coverings),
the outside plaza (which now includes a covered pavilion), and the parking surfaces (which
were expanded) (collectively, all construction, restoration, renovations, modifications,
alterations, upgrades, and improvements made at or to the Lucas Estate, by or at the
direction of the Lucases and/or the Trust, are the "Improvements').
C. The Lucases and the Trust have used the Lucas Estate for their private, personal, and family
events. They have also opened the Lucas Estate to the community by hosting philanthropic,
political, and community events through which they have, inter alia, raised millions of
dollars for local charities (all together, these are the "Events"). Neither the Lucases nor the
Trust have ever charged rent for or earned a profit on the Events held at the Lucas Estate.
D. The City takes issue with the Improvements and the Events. The City claims that some of
the Improvements were made without the required approvals, variances, and/or permits
from the City (all claims that have been made or could have been made by the City and
related to the Improvements are the "Improvement Claims"). The City alleges that the
Events have violated the Carmel City Code (the "City Code") and the Carmel Unified
Development Ordinance (the "Zoning Ordinance) (all claims that have been made or could
have been made by the City and related to the Events are the "Event Claims").
E. The City is suing the Lucas Parties and Anthony Puma ("Puma"), a former employee of
one or more of Lucas Parties, for Nuisance and Zoning Violations (all claims alleged or
that could have been alleged by the City against Lucas Parties and Puma are the "City
Claims") in City of Carmel, Indiana v. Lucas Family Living Trust, et. al, in the Hamilton
County Superior Court Cause 29D06-1905-PL-004900 (the "Litigation"). Lucas Parties
and Puma have denied liability and have countersued the City claiming, inter alia, that the
ordinances cited by the City are/were being enforced in a manner that is vague, ambiguous,
arbitrary, capricious, and violates the Indiana and U.S. Constitutions (the "Lucas Claims").
F. The Parties now desire to resolve their dispute and avoid further legal action and expense
as set forth in the "Terms and Conditions" below.
TERMS AND CONDITIONS
In consideration of recitals above and incorporated herein, the promises and mutual
covenants contained herein, each act done pursuant to hereto, and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. The Dismissal. Contemporaneously with the execution of this Agreement, the Parties shall
execute the Stipulation of Dismissal with Prejudice attached hereto as Exhibit A. Within
one (1) business days after the full execution of this Agreement, the City shall file the
Stipulation of Dismissal with Prejudice in the Litigation.
2. The Full and Mutual Releases. The City, on behalf of itself and its, as applicable, parents,
subsidiaries, affiliates, predecessors, successors, related entities, mayor, city council,
boards, commissions, committees, departments, executives, council members,
commissioners, officials, employees, representatives, agents, assigns, trustees, attorneys,
and insurers RELEASES AND FOREVER DISCHARGES Lucas Parties, Puma, and their,
as applicable, parents, subsidiaries, affiliates, predecessors, successors, related entities,
owners, shareholders, directors, officers, managers, employees, representatives, agents,
administrators, executors, heirs, assigns, trustees, attorneys and insurers, along with
Forrest, Charlotte, Morgan, and Katie Lucas (individually and together the "Lucas
Family") and Lucas Oil Racing, Inc. d/b/a Lucas Catering, from any and all charges,
complaints, claims, grievances, liabilities, obligations, promises, agreements,
controversies, damages, actions, causes of action, suits, proceedings, rights, demands,
costs, expenses, losses, debts, penalties, fees, wages, damages, and punitive damages, of
any kind or nature whatsoever, now existing or hereinafter arising, whether known or
unknown, and related, in any way, to the Lucas Estate, the Improvements, the Events, the
City Code, the Zoning Ordinance, the Improvement Claims, the Event Claims, the City
Claims, the Lucas Claims, and/or the Litigation.
Upon the filing of the Stipulation of Dismissal with Prejudice, the Lucas Parties, on behalf
of themselves and their, as applicable, parents, subsidiaries, affiliates, predecessors,
successors, related entities, owners, shareholders, directors, officers, managers, employees,
representatives, agents, administrators, executors, heirs, assigns, trustees, attorneys and
insurers, RELEASE AND FOREVER DISCHARGE the City and its as applicable, parents,
subsidiaries, affiliates, predecessors, successors, related entities, mayor, city council,
boards, commissions, committees, departments, executives, council members,
commissioners, officials, employees, representatives, agents, assigns, trustees, attorneys,
and insurers, from any and all charges, complaints, claims, grievances, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes of action, suits,
proceedings, rigbts, demands, costs, expenses, losses, debts, penalties, fees, wages,
damages, and punitive damages, of any kind or nature whatsoever, now existing or
hereinafter arising, whether known or unknown, and related, in any way, to the Lucas
Estate, the Improvements, the Events, the City Code, and the Zoning Ordinance, the
Improvement Claims, the Event Claims, the City Claims, the Lucas Claims, and/or the
Litigation.
3. The Approval of the Improvements. Contemporaneously with the execution of this
Agreement, an authorized representative of the City shall execute the attached Exhibit B.
Through this Agreement and Exhibit B, the City of Carmel (a) represents and agrees that
it will not in the future take any enforcement action against and/or in relation to any illegal
or unauthorized Improvements (construction, restoration, renovations, modifications,
alterations, upgrades, or improvements) made to the Lucas Estate prior to the Execution
Date; and (b) RELEASES AND FOREVER DISCHARGES the Lucas Family, the Trust,
and any subsequent owners of all or part of the Lucas Estate from any and all charges,
complaints, claims, grievances, liabilities, obligations, promises, agreements,
controversies, damages, actions, causes of action, suits, proceedings, rights, demands,
costs, expenses, losses, debts, penalties, fees, wages, damages, and punitive damages, of
any kind or nature whatsoever, now existing or hereinafter arising, whether known or
unknown, and related, in any way, to any Improvements (construction, restoration,
renovations, modifications, alterations, upgrades, or improvements) made to the Lucas
Estate prior to the Execution Date.
4. The Restrictions on Future Improvements. The Trust understands that any structure or
parking facility (including parking pavement) installed or erected at the Lucas Estate after
the Effective Date of this Agreement, shall be subject to the building permits, inspections,
engineering permits, and/or approvals required under the City Code and/or the Zoning
Ordinance.
5. The Restrictions on Future Events. The Trust understands that any events held at the
Lucas Estate after the Execution Date of this Agreement must be in compliance with the
zoning, noise, fire safety, and building regulations under the City Code and/or the Zoning
Ordinance. With that understanding, the Parties have agreed that:
Personal. and Family Events. The Lucas Family and/or the Trust may host unlimited
private, personal and family events (including weddings) at the Lucas Estate, without
regard to any restrictions in this Agreement, as long as these events are private and also
of a personal or family nature and attended by one member of the Lucas Family or a
family member who uses the Lucas Estate as their permanent and primary residence.
These events may not be advertised or open to the public.
• Other Types of Event-Weddines Charitable Political, and Community. The Lucas
Family and/or the Trust may direct or approve other events to be hosted at the Lucas
Estate, including, but not limited to, weddings, charitable, political, and community
events,' subject to four restrictions set forth below2:
' This allowance is contingent on (a) Forrest and Charlotte Lucas or their family maintaining a permanent residence
at the Lucas Estate or (b) Morgan and Katie Lucas maintaining their permanent residence next to the Lucas Estate-
' The term "guest' does not include any member of the Lucas Family, the relatives of the Lucas Family, or the
individuals working and/or providing services at the subject events.
• Weddings. The Lucas Family and/or the Trust may host weddings for their close
personal friends and/or their business partners with whom they share close personal
relationships if: (a) the weddings are not advertised or open to the general public;
(b) the weddings are limited to no more than five (5) per calendar year; and (c) the
weddings do not have more than three hundred (300) guests.
Outdoor Events. The Lucas Family and/or the Trust may host unlimited outdoor
events with less than one hundred (100) guests. However, outdoor events with
more than one hundred (100) guests shall be restricted as set forth directly below if
the primary activities at those events (i.e., dinner, display, ceremonies,
entertainment, etc.) are outside, and the use of permanent structures (meaning for
restrooms, food preparation, first aid, mother's nursing room, equipment, or other
similar activities) is only incidental to the primary, outdoor activities (the
"Restricted Outdoor Events").
Restricted Outdoor Events cannot exceed the following in any calendar year:
o Up to twenty-four (24) Restricted Outdoor Events with between one
hundred (100) and two hundred and fifty (250) guests;
o Up to ten (10) Restricted Outdoor Events with between two hundred and
fifty (250) and five hundred (500) guests;
o Up to three (3) Restricted Outdoor Events with between five hundred (500)
and seven hundred and fifty (750) guests; and
o One (1) Restricted Outdoor Event with up to one thousand (1,000) guests.
In addition to the aforementioned Restricted Outdoor Events, once every three (3)
years, the Lucas Family and/or the Trust may host a Restricted Outdoor Event with
up to one thousand five hundred (1,500) guests in connection with a national event
(such as the Super Bowl, Final Four, NBA Draft, NBA All -Star Game, etc.).
Restricted Outdoor Events cannot exceed one (1) event in any forty-eight (48) hour
period, with the exception of holiday events (i.e. Easter, Memorial Day, 4th of July,
Labor Day, Thanksgiving, Christmas) and special events (such as the NFL Playoffs,
the Super Bowl, the Indianapolis 500, the Brickyard 400). The Trust must arrange
for security, including traffic security at the primary entrance, at any Restricted
Outdoor Event exceeding two hundred and fifty (250) guests. The Lucas Family
and/or the Trust may seek approval from the Board of Zoning Appeals should they
desire to modify and/or host additional Restricted Outdoor Events.
Services. The Lucases and/or the Trust may collect a fee for the services the Lucas
Family, the Trust, and/or their affiliated entities provide at events if: (a) the service
is one hundred percent (100%) owned and controlled by the Lucas Family, the
Trust, and/or their affiliated entities; (b) the service is only provided to and/or at
events hosted by Lucas Family, the Trust, and/or their affiliated entities; (c) the
service is not advertised or provided to the general public; (d) the service is not
being provided for a profit; (e) the service is being provided at a cost that is equal
to or less than charges imposed by outside vendors for comparable services; and (f)
event organizers are allowed to select outside vendors for the services for events so
long as those vendors meet the specifications and requirements imposed by the
Lucas Family, the Trust, and/or their affiliated entities or those vendors are on a
preapproved list of vendors provided by the Lucas Family, the Trust, and/or their
affiliated entities. Otherwise, the Trust shall not permit any charge of a fee, rent, or
other consideration for use of the Lucas Estate'
Commercial Activity. The Trust shall refrain from engaging in commercial
activities (defined as an activity for exchange in the market with the goal of earning
an economic profit) on the Lucas Estate. The Trust shall refrain from advertising
or promoting the Lucas Estate to the general public as a wedding or event venue in
online formats, paper ads, and promotional materials for distribution, and, if the
Trust becomes aware of such third -parry advertising, it shall timely demand that the
third -party cease and desist such third -party advertising. Finally, the Trust shall
refrain from using the Lucas Estate as a means to try and compete with private
business who are properly zoned to conduct meetings and events.
6. Reservation of Rights: Notwithstanding any other provision in this Agreement, the Lucas
Parties reserve, and the City agrees that the Lucas Parties and Puma have, the rightto object
to and/or challenge the application and/or enforcement of any federal, state, or local law,
statute, code, ordinance, or regulation.
7. No Admission. This Agreement does not constitute an admission by any Party or Puma
of fault or liability or that any Party or Puma has violated any law, statute, code, ordinance,
or regulation; committed any unlawful act; or is otherwise liable under any legal theory.
8. Indvidual Liabilitv. The Parties agree that (a) each Parry is individually responsible for
complying with their obligations under this Agreement; (b) no Party is responsible for
ensuring any other Parry's compliance with their obligations under this Agreement; and
(c) in the event one of the Lucas Parties breaches their obligations under this Agreement,
Carmel will not seek to impose and there will be no joint or several liability for the
remaining, non -breaching Lucas Parties.
9. Miscellaneous Terms and Conditions.
a. Entire Agreement. This Agreement sets forth the entire agreement between the
Parties with respect to the subject matter of this Agreement. This Agreement fully
supersedes all prior negotiations, representations, and agreements, whether written
or oral, between the Parties with respect to the subject matter of this Agreement.
This Agreement may be modified only by written agreement signed by the Parties.
l The charges made by vendors that provide goods or services at the events shall not be deemed a fee, rent, or other
consideration for the use of the Lucas Estate.
b. Binding Nature. The terms and conditions of this Agreement shall extend to, be
binding upon and inure to the benefit of the heirs, administrators, personal
representatives, executors, successors and assigns of the Parties.
C. Capacity and Authority. The Parties warrant and represent that (i) they have the
legal capacity and the authority to execute this Agreement; (ii) they are the sole
parties in interest with respect to and have not assigned or transferred to any person
or entity the claims that they are releasing through this Agreement; (iii) they have
fully informed themselves of the terms, contents, conditions, and effects of this
Agreement; (iv) they have relied solely and completely upon their own judgment,
belief, and knowledge in executing this Agreement; (v) they have not relied upon
any statement or representation of any other Party or any other Party's employee,
agent, attorney, or representative in executing this Agreement; (vi) they have had
the opportunity to seek and obtain the advice of counsel before executing this
Agreement; (vii) they are executing this Agreement voluntarily and of their own
free will; and (viii) they are not acting under duress, economic or physical, in
executing this Agreement.
d. Arm's Leneth Negotiations. This Agreement is the result of arm's length
negotiations conducted by and among the Parties and/or their counsel. Each Party
has had an ample opportunity to make suggestions or changes to the terms and
conditions of this Agreement.
e. Interpretation and/or Construction. In any interpretation and/or construction of
this Agreement: (i) the interpretation and construction shall be performed in
accordance with the laws of the State of Indiana, without regard to conflict of laws
principles; (ii) all terms and conditions and all parts of this Agreement shall be
construed as a whole; (iii) section headings, which have been used for reference and
convenience, shall not affect the meaning of any provision in this Agreement; and (iv)
the rule of interpretation requiring documents to be construed against the drafter
shall be rejected.
f. Litigation and Attorneys' Fees. The Parties: (i) agree that litigation initiated by
any Party concerning this Agreement shall be brought and litigated in a state county
court of competent jurisdiction located in Hamilton County, Indiana; (ii) consent to
the exclusive personal jurisdiction and venue of such courts; (iii) waive any defense
offorum non conveniens; and (iv) agree that the prevailing party in such litigation
shall be entitled to recover its reasonable attorneys' fees, court costs, and out-of-
pocket expenses incurred in connection with such litigation.
g. Severabilityif any term or condition of this Agreement is applied to any Party or
to any circumstance that is adjudged to be illegal, invalid or inoperable, that
illegality, invalidity or inoperability shall not affect the remainder of the
Agreement, its validity or enforceability.
h. Counterparts and Execution. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which, together,
shall constitute one and the same instrument. Counterparts executed and then
transmitted by facsimile and/or electronic mail shall be deemed an original
document with an original signature.
Execution Date. This Agreement shall be effective on the date it becomes executed
by all of the Parties (the "Execution Date").
IN WITNESS WHEREOF, the Patties have caused this Agreement to be executed as
follows:
CITY OF CARMEL,,IINDIANAn
Signed: ,6�✓ ,�+ '
LUCASFAMILY LIVING TRUST
(14
Signed: ` a W� .Gt Cl"r
Printed: o47e A1L- UCH
Title' -Tc.�e-
Dated i1 21i
Printed: Jim Brainard
Title: Mavor
Dated 1-25-2023
LUCAS OIL PRODUCTS, INC.
Signed: �L`iilkl
Printed: �
Title: e c tt(
MICHEL�ALfI E MCWILLIAMS fJ'
Signed 1 o (a MLW -Loat
Dated
Dated
TEURKS-PERRY
Signed=� �P
Dated
Exhibit A
STATE OF INDIANA
COUNTY OF HAMILTON
CITY OF CARMEL, INDIANA
Plaintiff,
VS.
IN THE HAMILTON SUPERIOR COURT 5
SS:
CAUSE NO. 29D05-1905-PL-004900
LUCAS FAMILY LIVING TRUST,
LUCAS OIL PRODUCTS, INC., )
ANTHONY PUMA, TERINA BURKS- )
PERRY, and MICHELLE McWILLIAMS, )
Defendants.
STIPULATION OF DISMISSAL WITH PREJUDICE
The Parties hereby stipulate to the dismissal of all claims against all parties
in this matter with prejudice and with each party to bear their own fees and costs.
CITY OF CAgqRMEL, INDIANA
Signed i�:`"" �^�`�""�'
Printedim Brainard
Title: Mayor
LUCASLUCAS FAMILY LIVING TRUST
Signed: 1CAwi.�z c.
Printed:Cbh 6`44-s'- Lyc35
Title ri47+e e_ _
Dated 22
Dated
LUCAS OIL PRODUCTS, INC.
Signed: vim—
Printed: tInct x
Title: p 5 t
ANTHONY PUMA
11 R!lsJlf
Signed'-'-.- .-....-
DatedLan9,2023
Dated
TERINA BURKS-PERRY
Signed* S`
Dated
MICHELLE MrCWILLIA``MSS S-
��
Signed: i�IC Oa '�W, cAs
Dated V'i L _ �a-z
APPROVED AND SO ORDERED
This Court, having received and reviewed the Parties' Stipulation of Dismissal
with Prejudice, now ORDERS that this cause, including all claims against all parties,
is hereby DISMISSED WITH PREJUDICE. EACH PARTY IS TO BEAR THEIR
OWN FEES AND COSTS.
DATED,
JUDGE, HAMILTON COUNTY, INDIANA
DISTRIBUTION TO ALL COUNSEL OF RECORD
Exhibit B
STATE OF INDIANA
COUNTY OF HAMILTON
CITY OF CARMEL, INDIANA.
Plaintiff,
VS.
SS:
IN THE HAMILTON SUPERIOR COURT 5
CAUSE NO. 29D05-1905-PL-004900
LUCAS FAMILY LIVING TRUST,
LUCAS OIL PRODUCTS, INC.,
ANTHONY PUMA, TERINA BURKS-
PERRY, and MICHELLE McWILLIAMS,
Defendants.
AGREEMENT AS TO TWROVVEIIEENNTS MADE TO THE LUCAS ESTATE
As part of the settlement of the above -captioned case, the City of Carmel (a)
represents that it does not know of any illegal or unauthorized construction,
restoration, renovations, modifications, alterations, upgrades, or improvements made
to the Lucas Estate located at 1143 West 116th Street, Carmel, Indiana and all
adjacent property owned by the Lucases and/or one of their Trusts (the "Lucas
Estate"); (b) represents and agrees that it will not in the future take any enforcement
action against and/or in relation to any illegal or unauthorized construction,
restoration, renovations, modifications, alterations, upgrades, or improvements made
to the Lucas Estate prior to 1-25-2023 ; and (c) RELEASES AND FOREVER
DISCHARGES Forrest, Charlotte, Morgan, and Katie Lucas, the Lucas Family
Living Trust dated November 9, 2000, and any subsequent owners of all or part of
the Lucas Estate from any and all charges, complaints, claims, grievances, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes of action,
suits, proceedings, rights, demands, costs, expenses, losses, debts, penalties, fees,
wages, damages, and punitive damages, of any kind or nature whatsoever, now
existing or hereinafter arising, whether known or unknown, and related, in any way,
to any construction, restoration, renovations, modifications, alterations, upgrades, or
improvements made to the Lucas Estate prior to 1-25-2023
CITY OF CARMEL, INDIANA
Signed: 6r— 'b��
Printed: Jim Brainard
Title: Mawr
Dated 1- 5- n23