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SETTLEMENT AGREEMENT AND <br />GENEfTL—JOINT AND MUTUAL RELEASE <br />This Settlement Agreement and General Joint and <br />mutual Release ("Agreement and Release") is entered into <br />this 15th day of July, 1991, by and between THE CITY OF <br />COLTON ("COLTON"), a municipal corporation, and THE CITY OF <br />GRAND TERRACE ("GRAND TERRACE"), a municipal corporation, <br />collectively referred to as "Agreeing Parties". <br />RECITATIONS AND REPRESENTATIONS <br />A. on November 7, 1985, COLTON commenced an <br />action against GRAND TERRACEf in the Superior Court, State <br />of California, County of San Bernardino, Cage No. 229708. <br />on approximately August 14, 1987 GRAND TERRACE filed a cross <br />complaint in Case No. 229708, <br />This action arose out of a dispute regarding <br />connections by GRAND TERRACE to the Colton Sanitary Sewer <br />System. COLTON alleged that GRAND TERRACE had breached the <br />covenants and conditions contained in a 1980 Settlement <br />Agreement between these Agreeing Parties by failing to pay <br />COLTON the appropriate sums due for connections made to <br />COLTON's sewage system. COLTON's action sought damages for <br />breach of contract, declaratory relief, and an accounting. <br />GRAND TERRACE alleged that it had overpaid COLTON and sought <br />an accounting and damages. <br />