Adopt Resolution Authorizing the City's Lawsuit Against the e-Watch Corporation in Tarrant County, Texas (ALL COUNCIL DISTRICTS)

It is recommended that the City Council adopt the attached Resolution authorizing the City Attorney's office to file a lawsuit against e-Watch Corporation in Tarrant County, Texas.

On December 31, 2013, the City entered into a contract with the e-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 e-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 e-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, e-Watch owes the City $194,320.26.  The e-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.