HomeMy WebLinkAbout3/6/2002 - STAFF REPORTS (6) DATE: March 6, 2002
TO: City Council
FROM: Risk Manager via Director of Procurement & Contracting
INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA (]SOP) SETTLEMENT
AGREEMENT
RECOMMENDATION:
Approval of Settlement Agreement by and between the Insurance Company of the State of
Pennsylvania (ISOP) and the City of Palm Springs related to clams filed by Sandra Lee
Denham and Rita R.
BACKGROUND:
This case involves a claim against the Insurance Company of the State of Pennsylvania
(ISOP), the City's excess liability insurance company as a result of two lawsuits filed
against the City. The first lawsuit, Sandra Lee Denham v City of Palm Springs, was filed
after Denham's arrest and strip search at the time she was booked. In Denham, liability
was determined by a Federal Court that the Police Department's application of its strip
search policy was unconstitutional. The City Council authorized payment of$75,000 in
excess of ISOP's $825,000 settlement offer in order to achieve full settlement of the
Denham lawsuit.
The second claim involves Rita R v City of Palm Springs. It was the City's position that
defense costs of$33,320.58 in Rita R. should have been paid by ISOP since the lawsuit
pertained to the City's strip search policy and the City had already exhausted its
$250,000 SIR in Denham. Rita R. was ultimately dismissed by the Federal Court on a
statute of limitations defense. ISOP rejected the City's claim on the basis that Denham
and Rita R. were two separate occurrences.
The City filed suit against ISOP, seeking recovery for both the Rita R. defense costs and
the Denham SIR excess costs.
ISOP has proposed settlement in the amount of$55,060.29. The Settlement Agreement,
duly executed, is on file in the office of the City Clerk,
C Cat -� / kDirec
nNY JO�M I! TOSH, ARM, MPA LD E. G OD, CPPORisk Manager f Procurement & Contracting
APPROVED: .�
City Manager
Attachment: (1) Minute Order REVIEWED BY DK OF FINANCE
MINUTE ORDER NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING A SETTLEMENT AGREEMENT BY
AND BETWEEN THE INSURANCE COMPANY OF THE STATE
OF PENNSYLVANIA ([SOP) AND THE CITY OF PALM SPRINGS
RELATED TO CLAIMS FILED BY SANDRA LEE DENHAM AND
RITA R.
I HEREBY CERTIFY that this Minute Order, approving a Settlement Agreement by and
between the Insurance Company of the State of Pennsylvania ([SOP) and the City of Palm
Springs related to claims filed by Sandra Lee Denham and Rita R., was adopted by the
City Council of the City of Palm Springs, California, in a meeting thereof held on March 6,
2002.
PATRICIA A. SANDERS
City Clerk