CONSENT AGENDA- Terry Dussault, Human Resources Director
Title
AUTHORIZE PAYMENT OF $21,328.12 TO LMCIT FOR LITIGATION COSTS
Background
The Council has been kept informed about a claim filed by St. Paul Real Estate Holdings L.L.C. The district Court granted the City’s motion for summary judgment and dismissed the plaintiff’s claim. The City, represented by League of Minnesota Cities Insurance, entered into a Settlement Agreement with the plaintiff that did not involve any payment to the plaintiff. However the LMCIT did incur $21,328.12 in litigation costs on behalf of the City. Because of the nature of the claim, the LMCIT handled it as land use and special risk litigation. The City’s coverage agreement with LMCIT states that they will pay the 85% of the first $250,000. This means the City was liable for 15% or $3,199.21. The City’s Municipal Liability Deductible during the coverage period applicable to this claim is $100,000 per occurrence. That means the City is also responsible for the remaining $18,128.91 for a total cost of $21,328.12.
Recommendation
By motion, approve payment of $21,328.12 to LMCIT.