Attorneys working on watering down indemnification clause [The Reporter (Tavernier, Fla.)]

May 23--Attorneys on both sides of the issue are working to tone down an agreement indemnifying the Key Largo Wastewater Treatment District from damages that could result from the construction and maintenance of on-site sewage systems.

District general counsel Ray Giglio and Nicholas Mulick, the attorney representing residents where the system might go, are negotiating proposed language in the agreement. Mulick said as written, the agreement places too much risk on his clients.

The new language is expected to be discussed at the June 11 district board of commissioners meeting. The five-member commission is scheduled to vote on the language June 18.

About 150 "unique properties" within the Key Largo Wastewater Treatment District cannot connect to the main sewage system because they are too far from vacuum pumps. Instead, those properties will have to install on-site systems with grinder pumps.

Installing their own grinder pumps would cost homeowners anywhere from $15,000 to $35,000 each. If the district installs the system, homeowners would be assessed about $9,000.

But if the district is going to install and maintain the system, it wants to be protected from lawsuits, even if one of its workers or contractors causes damage to a homeowner's property.

"We're offering to do something for less money," said Robby Majeska, commission chairman. "What we're asking in return is not to get sued."

But residents of Coral Coast, a 15-unit subdivision at mile marker 97, have a big problem with the clause. They say the so-called hold-harmless agreement would hurt property values and could impact a homeowner's ability to buy insurance.

Commissioners Norman Higgins and David Asdourian want the clause taken out completely. Majeska and Commissioners Steve Gibbs and Andy Tobin said the district needs some sort of protection from lawsuits.

Resident Jose Jurado presented a letter from his sister-in-law, an attorney, who said it's not customary for utilities to include hold-harmless clauses in easement grants.

"The hold harmless is extremely broad in nature and may result in negative ramifications to you, any future purchase of your home and ultimately to the entire community," Christine de Zayas Jurado wrote in a May 16 letter to Jose Jurado. She urged her brother-in-law not to sign the agreement.

She also said the clause is not needed because the wastewater district is already protected by Florida statute, which limits the amount of money it can be penalized in a lawsuit.

Sharon Nyman, a real estate agent with Century 21, said the clause could hurt home values in the community.

"Due to the broad scope of the hold-harmless clause and the district's ability to amend it in the future, I feel it would interfere with the sale of the Coral Coast properties, thereby negatively affecting their value," Nyman said in a statement read at the district's board's Tuesday meeting.

But not everyone who attended the meeting objected to the clause. Zachary Zurich, an attorney and real estate broker who lives at mile marker 95.6, said he is tired of waiting for a sewer connection.

"I find the clause to be reasonable to protect the district from nonsensical litigation," Zurich said. "It is not justified to say it would reduce property values. It will not have any effect on property values. If anything, connecting to the sewer system will increase property values."

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