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Spark vs. City of DubuqueTHE CITY OF DUB ei E MEMORANDUM Masterpiece on the Mississippi BARRY LIND H CITY ATTORN Y To: Mayo Roy D. Buol and Members of the City Council DATE: April 22 2014 RE: Tiffany Spark vs. City of Dubuque Tiffany Spark, f/k/a Tiffany Lawrence, went through bankruptcy and a water bill owing the City of Dubuque was discharged. The debt under the name of Spark was written off by the City, however, a debt under the name of Lawrence, which was also discharged was inadvertently not written off. The City then commenced collection action against Tiffany Lawrence, including putting a lien on her state tax refund. The discharge in bankruptcy operated as an injunction against any collection efforts for a discharged debt and a violation of that injunction is contempt of court, regardless of how inadvertent or understandable the collection effort might be. The Court has authority to award damages and attorneys fees, as well as a fine for contempt violation. Attached is a letter from Attorney Les Reddick who represented the City in this matter. Les has negotiated an agreement with counsel for Spark to settle this matter for $2,500.00. Upon City Council approval, Les will obtain a release and dismissal in exchange for the payment. I recommend approval of this settlement. BAL:tls Attachments cc: Michael C. Van Milligen, City Manager Ken TeKippe, Finance Director Les Reddick, Esq. F:\USERS\tsteckle\Lindahl\Spark vs City\MayorCouncil_ApprovalOfSettlement_042214.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org Brian J. Kane Les V. Reddick* Brad J. Fleying Todd L. Stevenson* Kevin T. Deeny** Bradley B. Kane Joseph P. Kane Nicholas 3. Kane All admitted in Iowa *AIso admitted in Illinois **Also admitted in Wisconsin Mr. Barry A. Lindahl City Attorney Harbor View Place, Suite 330 300 Main Street Dubuque, Iowa 52001-6944 KANE, NORBY & REDDICK, P.C. ATTORNEYS 2100 ASBURY ROAD, SUITE 2 DUBUQUE, IOWA 52001-3091 April 22, 2014 RE: TIFFANY SPARK V. CITY OF DUBUQUE Dear Barry: Retired: Gary K. Norby Phone: (563) 582-7980 Facsimile: (563) 582-5312 Ireddick@kanenorbylaw.com This Petition for contempt is pending in the U.S. Bankruptcy Court for the Northern District of Iowa. Tiffany Spark, f/k/a Tiffany Lawrence, went through bankruptcy and a water bill owing the City of Dubuque was discharged The debt under the name of Spark was written off by the City, but a debt under the name of Lawrence, which was also discharged, was inadvertently not written off The City then commenced collection action against Tiffany Lawrence, including putting a lien on her state tax refund. The discharge in bankruptcy operated as an injunction against any collection efforts for a discharged debt and a violation of that injunction is contempt of court, no matter how inadvertent or understandable the collection effort might be. The Court has authority to award damages and attorneys fees, as well as a fine for a contempt violation. Taking all of this into consideration, we have reached an agreement with counsel for Spark to settle this matter for $2,500 and ask for City Council approval. We will obtain a release and dismissal in exchange for the payment. Very truly yours, KANE, NORBY & REDDICK, P.C. By Les V. Reddick LVR/bmo