PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5f 
Date of Meeting     April 2, 2013 
DATE:    March 27, 2013 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Craig Watson, General Counsel 
SUBJECT:  Motion Authorizing Payment of Defense Costs 

ACTION REQUESTED: 
Request Commission approval of a motion to authorize payment of defense costs for
current employees for claims related to the Airport Concessions Disadvantaged Business
Enterprise (ACDBE) program. 
BACKGROUND:
Pursuant to RCW 53.08.208, a port commission may authorize the payment of defense
costs to any current or former employee arising out of the performance or failure of
performance of duties. Section 9 of Resolution No. 3605, as amended, provides that the
Chief Executive Officer may retain appropriate legal representation "whenever any
action, claim or proceeding is instituted against any person who is or was an officer,
employee, or agent of the Port arising out of the performance or failure of performance of
duties," provided that the Commission must approve the retention of counsel if
allegations of fraud or illegal activity are included in the action, claim or proceeding. 
The Port has received a notice of claim against the Port and certain employees from
Concourse Concessions, LLC; JLAD LLC dba Quiznos B Concourse; SeaTac Bar Group,
LLC; and Sun's Incorporated dba Manchu Wok alleging, among other things, illegal
discrimination in the award and administration of leases in the ACDBE program.
It has been the Port's practice to pay defense costs subject to the statutory limitations that
the employees were acting in good faith and within the scope of their employment. If the
employees are at any time found to be acting in bad faith and outside the scope of their
employment or engaged in fraud or illegal activity, the offer for defense costs will be
revoked.