COUNCIL AGENDA: 8/11/2026
ITEM: 2.10
T-48572/2316492
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: SUSANA ALCALA WOOD,
City Attorney
SUBJECT: SETTLEMENT OF MARY
MARTINEZ v. CITY OF SAN
JOSE
DATE:
July 29, 2026
RECOMMENDATION
Approve the settlement in the case Mary Rosario Martinez v. City of San José, in the total amount of $75,000 and authorize the City Attorney to execute a settlement agreement.
OUTCOME
The City will pay the sum of $75,000.00 to settle the lawsuit filed on February 19, 2025, entitled Mary Rosario Martinez v. City of San José , in the Superior Court of California, County of Santa Clara, case number 25CV459323.
BACKGROUND
This action arises out of a motor vehicle accident. Plaintiff alleges that, on November 1, 2024, while traveling southbound on Santa Teresa Boulevard near its intersection with Bailey Avenue in San José, California, her car struck a dangerous condition in the roadway that caused total damage to her vehicle and injuries that required surgical intervention. The case presented a substantial risk of liability because the City had notice of, but had not repaired, the condition in the roadway.
ANALYSIS
This is a negotiated settlement between the parties to avoid the risks inherent in litigation. The City will pay plaintiff the total sum of $75,000 in full satisfaction and settlement of all claims, and plaintiff will dismiss her entire lawsuit against the City with prejudice. The proposed agreement will conclude the litigation without further cost, expense, or risk of loss to the City. The parties will bear their own respective attorneys’ fees and litigation costs.
CITYOF ~
SANJOSE _____ M_e_m_o_ra_n_d_um_
CAPI'D\L OF SILICON VALLEY
HONORABLE MAYOR AND CITY COUNCIL
July 29, 2026
Subject: Settlement of Mary Martinez v. City of San Jose
T-48572/2316492
PUBLIC OUTREACH/INTEREST
This memorandum and the Settlement Agreement have been posted on the City’s website for the August 11, 2026, open session agenda.
COST SUMMARY/IMPLICATIONS
The settlement will be paid from the City’s claims reserve fund.
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the action recommended in this memorandum.
Fund
#
Appn
#
Appropriation Name Total
Appropriation
Recommended
Budget Action
2026-2027
Proposed
Operating
Budget
Page*
Last
Budget
Action
(Date, Ord.
No,)
001 0018 General Liability Claims $12,100,000 $75,000 830 6/16/2026, 31336
*The 2026-2027 Adopted Operating Budget was adopted on June 16, 2026, by the City Council.
CEQA
Not a Project; File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
By: /s/ Susana Alcala Wood
SUSANA ALCALA WOOD
City Attorney
cc: Jennifer Maguire, City Manager
For questions, please contact SUSANA ALCALA WOOD, City Attorney, at (408) 535-1900.