Supporting Document (27467ad1...)
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REPORT
Item 18
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Meeting Date:
General Plan Element:
General Plan Goal:
ACTION
June 9, 2026
Provide for the orderly administration of the affairs of the City
Fiscal management
Adopt Resolution No. 13713 authorizing
(1)
Agreement No. 2026-117-COS with Plaintiff Linda Cebulski in the amount
of $100,000 to settle ail claims in Linda Cebulski v. City of Scottsdale, et al,
Case No. CV2024-030815, currently pending in the Maricopa County
Superior Court, and
(2)
That the City Council authorizes and directs the City Manager, the City
Treasurer, and the City Attorney, and their respective staffs to execute
such documents and take such other actions as are necessary to carry
out the purpose of the Resolution.
BACKGROUND
This lawsuit arises from a trip and fall that occurred on February 7, 2024. Linda Cebulski was
walking on the sidewalk near 7088 East 5’^*’ Avenue in Scottsdale, when she tripped on a raised
sidewalk panel, fell and sustained injuries. Ms. Cebulski’s injuries included a tibial plateau
fracture, which required surgery to stabilize her knee and post-surgical treatment. Ms. Cebulski
incurred approximately $133,850 in medical bills. Subsequently, Plaintiff filed a Notice of Claim
seeking $340,000 in damages.
Plaintiff s lawsuit alleged negligence against (1) the City, [2) the owner of the adjacent building,
(3) the property manager, and (4) the retail tenant. The parties engaged in extensive discovery,
including expert reports and depositions. The other defendants settled Plaintiffs claims against
them during mediation in 2025 for an unknown sum. The City was unable to reach a settlement
with Plaintiff at that time and the parties continued to prepare for trial, set for August 11-17,
2026.
After additional exchanges of expert reports and depositions, the City and Plaintiff informally
reengaged the mediator to assist the parties in continuing settlement negotiations, based on the
additional information learned. Subject to City Council approval, the parties have agreed to
resolve this litigation for $100,000.00. This will resolve the entirety of the lawsuit filed by Ms.
Cebulski, including her alleged pain and suffering.
City staff is recommending that the City Council approve this settlement because the cost,
uncertainty, and risk of going forward to trial in this case far outweigh the amount of this
negotiated settlement.
Action Taken
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City Council Report | Authorize Settlement
ANALYSIS & ASSESSMENT
Recent Staff Action
The matter is being handled in-house by the City Attorney’s Office in collaboration with the Safety
and Risk Management Division. Staff believes that settlement is in the best interests of the City.
Policy Implications
None.
Significant Issues to be Addressed
None.
Community Involvement
No community involvement is necessary on this item.
RESOURCE IMPACTS
Available funding
The proposed settlement will require a total payment of $100,000 from the City to the Plaintiff.
Funds are available in the City's FY 2025/26 Safety and Risk Management Operating Budget to
pay the settlement. If the settlement is denied, the City will likely spend thousands of dollars in
expenses and hundreds of staff hours in the defense of this case through trial.
Staffing, Workload Impact
Approval of the proposed settlement brings this claim to a conclusion and will eliminate the need
for staff resources from the City Attorney's Office, Safety and Risk Management and other
involved departments to be spent on this case.
Future Budget Implications
The proposed settlement of $100,000 may be included in the City’s primary property tax rate for
the next year, at the Council's discretion. The eligibility of settlement and judgment payments
for possible inclusion in the City's primary property tax rate is based upon an Arizona Attorney
General opinion.
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City Council Report j Authorize Settlement
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
The City Attorney's Office recommends that the Council adopt Resolution No. 13713 and
authorize settlement of this lawsuit as proposed. City Management has been consulted and is
supportive of the proposed settlement as well.
Proposed Next Steps
If the settlement is approved, City representative(s) will execute settlement documents as
proposed.
RESPONSIBLE DEPARTMENT(S)
City Attorney's Office - Civil Division
Safety and Risk Management
STAFF CONTACTS (S)
Luis E. Santaella, City Attorney, lsantaella@scottsdaleaz.gov
George Woods, Safety and Risk Management Director, gwoods@scottsdaleaz.gov
APPROVED BY
George Woods, Safety & ^k Management Director
480-312-7040
gwoods@scottsdaleaz.gov
Date
Luis E. Santaella, City Attorney
(480) 312-2405
lsantaella@scottsdaleaz.gov
Date
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City Council Report | Authorize Settlement
ATTACHMENTS
1.
Resolution No. 13713
2.
Contract No. 2026-117-COS
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RESOLUTION NO. 13713
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE,
MARICOPA COUNTY, ARIZONA, AUTHORIZING SETTLEMENT IN THE
AMOUNT OF $100,000.00 TO SETTLE LINDA CEBULSKI v. THE CITY OF
SCOTTSDALE. ET AL. CASE NO. CV2024-030815, IN THE MARICOPA
COUNTY SUPERIOR COURT, AND AUTHORIZING THE MAYOR TO EXECUTE
CONTRACT NO. 2026-117-COS.
WHEREAS, Plaintiff Linda Cebulski filed suit against the City of Scottsdale alleging damages for
injuries arising from a trip and fall which occurred on or about February 6, 2024;
WHEREAS, the City continues to dispute iiability, but it is in the best interest of the City to effectuate
a settlement of all claims against the City arising from the subject trip and fall and which form the basis of
the lawsuit, Linda Cebulski v. the City of Scottsdale, et a/.. Case No. C\/2024-030815, currently pending in
the Maricopa County Superior Court.
WHEREAS, the parties have agreed to resolve the disputed issues and compromise all claims by
settling herein.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale, Maricopa County,
Arizona, as follows:
Section 1. That the City Council hereby authorizes the Mayor to execute Contract No. 2026-117-
COS on behalf of the City to settle and resolve Linda Cebulski v. City of Scottsdale, et a!., Case No.
CV2024-030815 in its entirety with the amount of One Hundred Thousand Dollars and No Cents
($100,000.00) to be paid by the City to Plaintiff Linda Cebulski; and
Section 2. That the City Council approves the settlement set forth above and authorizes and directs
the City Manager, the City Treasurer, and the City Attorney, and their respective staffs to execute such
documents and take such other actions as are necessary to carry out the purpose of the Resolution.
PASSED AND ADOPTED by the Council of the City of Scottsdale, Maricopa County, Arizona this
__ day of June, 2026.
CITY OF SCOTTSDALE, an Arizona
municipal corporation
ATTEST:
Lisa Borowsky, Mayor
Ben Lane, City Clerk
APPROVED AS TO FORM:
sphahie Heizer
Principal Assistant City Attorney
19209860
Attachment 1
Resolution No. 13713
Page 1 of 1
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Contract No. 2026-117-COS
SETTLEMENT AGREEMENT
AND GENERAL RELEASE
This Settlement Agreement and General Release of All Claims C'Agreement”) is entered into by
and between LINDA CEBULSKI (‘‘PlaintifT’) and the CITY OF SCOTTSDALE, a municipal
corporation, its employees, officers, and agents ("City”)- Plaintiff and City may be referred to jointly
as the “Parties”.
RECITALS
A.
On or about February 7, 2024, Plaintiff alleges that as she was walking on the sidewalk
near 7088 E. 5th Avenue in Scottsdale, Arizona, she tripped and fell On an uneven sidewalk and is
claiming injuries and damages as a result of her fall (collectively hereinafter referred to as the “event”).
B.
Plaintiff filed a lawsuit against the City in the Superior Court of Maricopa County,
Arizona, entitled Linda Cebulski v. City of Scottsdale, et al.. Case No. CV2024-0308IS, alleging
damages for injuries she allegedly sustained in the event.
C.
Despite the fact tliat liability has not been admitted regarding the claim asserted by
Plaintiff in the lawsuit and the fact that this claim remains disputed, Plaintiff desires to finally and fully
resolve all past, present, and potential disputes, claims, and issues as between the Parties relating to or
arising out of Plaintiff’s eyent and the facts and circumstances that gave rise to the Plaintiff’s alleged
injuries. The Plaintiff and the City desire to avoid further expense,.inconvenience, and the distraction
of burdensome and protracted litigation. This Agreement is intended to resolve any dispute which may
exist between the Parties. The Plaintiff intends to execute this Agreement in order to provide for certain
payment.in fiill settlement and discharge of all claims which are, or might have been^ brought against
the City as a result of the event, upon the terms and conditions set forth below.
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Attachment 2
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Contract No. 2026-117-COS
AGREEMENT
In consideration of the promises and releases set forth herein, the Parties agree as follows:
1.
Settlement Payment. The total payment by the City for the settlement of this claim shall
be ONE HUNDRED THOUSAND DOLLARS and 00/100 ($100,000.00) which includes any and all
claims for costs and attorneys’ fees, with the payment to be made to “Gairison Law Firm in Trust for
Linda Cebulski”. Plaintiff acknowledges and agrees that this settlement payment is the full and entire
amount that Plaintiff will ever receive from the City in connection with the claims and event described
above. If Plaintiff is Or was represented by counsel, Plaintiff acknowledges that any fees due to her
counsel shall be Plaintiff’s responsibility, and the City will have no further obligation to pay such sums
beyond the amount identified above.
2.
AU Claims of Any Kind. In consideration for the terms and promises herein. Plaintiff
hereby fully and generally releases and forever discharges the City, its officers, employees and agents,
from any and all claims or liabilities of any nature whatsoever to the extent allowed by law that Plaintiff
has or claims to have, or may have, against any of them arising out of the event including any expenses
and attorneys’ fees, regardless of whether or not such claims or liabilities are known to the Parties at the
time of the execution of this Agreement. Plaintiff intends by the execution of this Agreement to release
all claims against the City and its employees, officers, and agents including any unknown damages
and/or injuries.
3.
No Admission of Liability. It is understood and expressly agreed that neither the payment
of the Settlement Payment nor anything contained within this Agreement shall be construed as an
admission of any liability whatsoever on the part of the City which has always and is now expressly
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Contract No. 2026-117-COS
denying any liability. The Parties acknowledge and agree that the Settlement Payment is made in
compromise and settlement of a disputed claim.
4.
Liens. Plaintiff warrants that Plaintiff will satisfy any and all valid liens, including, but
not limited to, ERISA liens. Medicare or Medicaid liens, liens pursuant to A.R.S. § 33-931 et seq., liens
falling under the rubric of Andrews v. Samaritan Health System, 201 Ariz.-379,36 P.3d 57 (App. 2001);
Blankenbaker v. Janovich, 205, Ariz. 383, 71 P.3d 910 (Ariz. 2003); Maricopa County v. Barjield, 75
P.3d 714 (App. 2003). Plaintiff will indemnify and hold harmless the City, its employees, officers,
agents and representatives, from any and all claims, demands, actions and causes of action, and all
liability whatsoever, including, but not limited to costs, attorneys’ fees or judgment which might arise
from an unpaid or unsatisfied hospital or medical bill and/or lien or lien of any other kind which might
apply to the proceeds paid herein.
5.
Indemnify and Hold Harmless, Plaintiff does hereby covenant to indemnify and save
harmless the City from and against all claims and demands whatsoever on account of or in any way
growing out of the event or its results both to person and property.
6.
General Release. Plaintiff acknowledges and agrees that this is a General Release. The
Plaintiff expressly waives and assumes the risk of any and all claims for damages which exist of this
date, but of which the Plaintiff does not know or suspect to exist, whether through ignorance, oversight,
error, negligence, or otherwise, and which, if known, would materially affect ^the Plaintiffs decision to
execute this Release. The Plaintiff further agrees that Plaintiffhas accepted payment of the sum specified
herein as a complete settlement and compromise of matters involving disputed issues of law and fact.
The Plaintiff assumes the risk that the facts or law may be other than Plaintiff believes. The Plaintiff
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Contract No. 2026-117rCOS
understands and agrees that this Agreement is a compromise of disputed claim, and the Settlement
Payment is not to.be construed as an admission of liability on the part of the City, by whom liability is
expressly denied.
7.
Review of Agreement. The Plaintiff declares and represents that no promise, inducement
or agreement not herein expressed has been made to the Plaintiffandthe terms of this Agreement are
contractual and not a mere recital. The Parties expressly acknowledge that they have entered this
Agreement knowingly and voluntarily and that each party has had the opportunity to receive the advice
of counsel with respect to the Agreement and the settlement of this matter.
8.
Binding Nature of Agreement; Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective heirs, personal representatives, successors and
assigns, except that no party may assign, delegate or transfer any of its fights or obligations under this
Agreement without prior written consent of the other party.
9.
Arizona Law. In the event of any dispute arising from the tenns of this Agreement,
Arizona law shall apply and govern.
10.
Dismissal with Prejudice. The Parties shall, as soon as practicable after the execution of
this Agreement and receipt of the payment described above, execute a stipulation to dismiss with
prejudice the lawsuit entitled Linda Cebulski v. City of Scottsdale, el al.. Case No. eV2024-030815 now
pending in the Superior Court of Maricopa County, Arizona, with each party to bear their own costs and
attorneys'fees.
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Contract No. 1026-117-GOS
11.
Entire Agreement. This Agreement constitutes the entire integrated agreement between
the Parties and supersedes any and alj prior and/or contemporaneous agreements, promises,
representations,-negotiations, statements and/or understandings of the Parties.
12.
Counterparts. This Agreement may be executed in counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed
to constitute one and the same agreement.
IN WITNESS WHEREOF, I have hereunder set my hand this J^f^Jay of MOulJ . 2026.
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By;
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Linda Cebulski, Plaintiff
Approved as to form and agreeing to satisfy all
legally valid liens front the proceeds of this
settlement before the settlement ftinds are
disbursed:
GARRISON LAW FIR
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Kevin Garrison
Daniel Garrison
Attorneys for Plaintiff
PageSofd
Contract No. 2026-117-COS
CITY OF SCOTTSDALE, an Arizona Municipal Corporation
By:
Lisa Borowsky
Mayor, City of Scottsdale
Dated:
ATTEST:
Ben Lane, City Clerk
Dated:__________
PROVED AS TO FORM:
liuisJl^Santaella, City i^ttorhty
By: Stephanie Heizer, Principal Assistant City Attorney
Dated:
____
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