PILLAR: Core Organzational Support
AGENDA DATE: February 25, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Attorney’s Office
PRIORITY: Government Efficiency
______________________________________________________________________
SUBJECT
Title
Authorize settlement of the lawsuit styled, Sharon Stolte, as Liquidating Agent of the Continental American Corporation Liquidating Trust v. Dallas Water Utilities, Case No. 23-10938-11, Adversary Proceeding No. 25-05056 - Not to exceed $70,001.02 - Financing: Dallas Water Utilities Fund
Body
BACKGROUND
Plaintiff, Sharon Stolte as Liquidating Agent of the Continental American Corporation Liquidating Trust filed a lawsuit against Dallas Water Utilities seeking the return of a $70,001.02 payment made to Dallas Water Utilities on August 8, 2023. This payment was within the 90-day preference period before the filing of the debtor’s, Continental American Corporation’s, bankruptcy petition. The City and plaintiff, Sharon Stolte, as Liquidating Agent of the Continental American Corporation Liquidating Trust have agreed to a proposed settlement subject to City Council approval. The plaintiff is represented by Sandberg Phoenix & von Gontard P.C. in Kansas City, Missouri.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
A confidential memorandum regarding this matter will be provided to the City Council on February 20, 2026.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Dallas Water Utilities Fund |
$70,001.02 |
$0.00 |
$0.00 |