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HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: George K. Wysong III, City Attorney47_ x,11,7;2127 DATE: October 23, 2025 RE: City Commission Meeting — October 23, 2025 Proposed Authorization of Partial Settlement of the insurance claims against Continental Casualty Company and National Indemnity Company of Omaha in the amount of $4,150,000.000, in partial settlement of the claims and demands of the City of Miami, upon execution of a limited release File No.: 18328 The attached proposed Resolution seeks authorization to accept a partial settlement agreement of $4,150,000.000 for historic and potential policies taken out by the City of Miami ("City") with Continental Casualty Company and National Indemnity Company of Omaha in the 1960s and 1970s related to City -owned property. This settlement would require a limited release while maintaining other claims that have yet to be resolved. The City, in the 1960s-1970s, took out several policies protecting City -owned property from a variety of claims. Two such policies with Continental Casualty Company and National Indemnity Company of Omaha have been located within City archives while a third appears to have existed but cannot be confirmed. The claims resolved within the limited release are associated with the environmental cleanup costs already expended by the City for which there is a claim for entitlement to reimbursement. Continental Casualty Company and National Indemnity Company of Omaha have agreed to this settlement amount in exchange for a limited release which allows the City to maintain entitlement, or potential entitlement, to additional policy benefits. The Office of the City Attorney has investigated and evaluated this case and has approved the recommendation of this settlement, with funds received pursuant to the partial settlement agreement to be appropriated and allocated by future legislation. cc: Art Noriega, V, City Manager Miriam M. Santana, Agenda Coordinator Attachment(s) City of Miami Legislation Resolution Enactment Number: R-25-0444 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 18328 Final Action Date:10/23/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE PARTIAL SETTLEMENT OF INSURANCE CLAIMS AGAINST CONTINENTAL CASUALTY COMPANY AND NATIONAL INDEMNITY COMPANY OF OMAHA IN THE AMOUNT OF $4,150,000.00, WITH FUNDS TO BE APPROPRIATED AND ALLOCATED BY FUTURE RESOLUTION, IN PARTIAL SETTLEMENT OF THE CLAIMS AND DEMANDS OF THE CITY OF MIAMI; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A LIMITED RELEASE OF CLAIMS AND DEMANDS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, the City of Miami ("City") maintained certain actual or alleged insurance policies with Continental Casualty Company and with National Indemnity Company of Omaha (collectively "Insurers") which the City has asserted included coverage for environmental costs incurred to City -owned property; and WHEREAS, the City has reached a tentative agreement to resolve a portion of the claims of the City, which included coverage for environmental costs incurred to City -owned property, in exchange for a payment by Insurers of $4,150,000.00, which funds are to be appropriated and allocated by future legislation, and a limited release; and NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. The City Manager is authorized' to accept the settlement offer. Section 3. The City Manager is authorized1 to execute a limited release, in a form acceptable to the City Attorney. Section 4. Funds received pursuant to the partial settlement agreement to be appropriated and allocated by future legislation. Section 4. This Resolution shall become effective immediately upon its adoption. 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. APPROVED AS TO FORM AND CORRECTNESS: