HomeMy WebLinkAboutCover MemoCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: The Honorable Mayor and Members of the City Commission
FROM: Julie O. Bru, City Atto7_�
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DATE: May 28, 2010
RE: Proposed Resolution for it Commission Meeting -June 10, 2010
Accepting a payment in the amount of $35,000, in full settlement of
all claims and demands for the case of City of Miami v. North River
Insurance Company Case No. 09-23025
File No. 10-00711
The attached proposed Resolution seeks authorization to accept payment in the amount
of ($35,000), in full settlement of all claims and demands for the case of City of Miami vs.
North River Insurance Company, Case No. 09-23025 pursuant to the terms of the General
Mutual Release.
The Estate of Beatty brought a Section 1983 action, violation of civil rights against the
City of Miami. On January 10, 2005, during the course of the litigation, the parties reached a
settlement for ($400,000) to resolve all issues in the case. The City had an excess insurance
policy provided by North River Insurance Company ("North River"), under which the City was
to pay the first ($350,000) and the insurance policy was to cover all sums in excess.
North River was initially put on notice of this claim on May 21, 2002, by the City of
Miami's representative. Over the next three years North River sent requests to the City's
claims representative requesting additional information. The City first provided a response to
North River on January 31, 2005, five days after the parties had reached settlement terms
subject to City Commission approval.
On February 9, 2005, North River sent a letter to the City denying coverage because it
did not receive timely information regarding this claim and that the City had reached a
settlement in excess of its self insured retention without. its knowledge. Instead, of the
($50,000) North River was obligated to pay, North River offered to contribute ($7,500)
towards the settlement.
The City then filed suit and, as a result of post suit negotiations, North River has
offered to pay the City $35,000 to settle all claims.
c: Carlos A. Migoya, City Manager
Elvi Gallestegui, Agenda Coordinator
Enclosure(s)
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