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HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Victoria Mendez, City Attorney DATE: September 12, 2019 [� RE: Proposed Settlement - City Commission Meeting — September 12, 2019 Partial Payment Settlement - Resolute Management File No.: 6442 The attached proposed Resolution seeks authorization for settlement with Resolute Management, as claims handler for National Indemnity Company and Travelers Insurance Company, part of the Travelers Insurance Group, as successor to United States Fidelity and Guaranty Company ("USF&G") for payment to the City of fifty percent (50%) of the defense costs subject to approving the hourly rates of Outside Counsel and their staff, but preapproving an hourly rate for attorneys who are employed by the Office of the City Attorney ("OCA") of $175.00 and paralegals who are employed by the OCA of $75.00 in the case of Styles, et al. v. City of Miami, et al., Case No. 17-022967, in Miami -Dade Circuit Court. The Office of the City Attorney has investigated this claim for defense fees and costs in the case of Styles et al. v. City of Miami et al., Case No. 17-022967, in Miami -Dade Circuit Court and recommends that said claim be settled. Attachment(s) CC' Emilio T. Gonzalez, City Manager Miriam Santana, Agenda Coordinator VM/BLM/HJH/vja File Number: 6442 City of Miami Legislation Resolution Enactment Number: R-19-0327 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:9/12/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING A SETTLEMENT AS TO THE PARTIAL PAYMENT FROM RESOLUTE MANAGEMENT, AS CLAIMS HANDLER FOR NATIONAL INDEMNITY COMPANY TRAVELERS INSURANCE COMPANY, PART OF THE TRAVELERS INSURANCE GROUP, AS SUCCESSOR TO UNITED STATES FIDELITY AND GUARANTY COMPANY ("USF&G"), OF DEFENSE FEES AND COSTS IN THE CASE OF STYLES, ET AL. V. CITY OF MIAMI, ET AL., CASE NO. 17-022967, PENDING IN THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO EFFECTUATE THE SETTLEMENT. WHEREAS, pursuant to Resolution No. 16-0130 adopted March 24, 2016, the City Commission directed the City Attorney to locate all City of Miami ("City") historical insurance policies and to take any and all actions necessary to pursue insurance recovery, as applicable, and to engage outside counsel Eisenstein Malanchuk LLP and Nason, Yeager Gerson, White & Lioce, P.A. (collectively, "Outside Counsel"), on a contingent fee basis, to locate City historical insurance policies and to pursue coverage claims, as applicable; and WHEREAS, Outside Counsel has located evidence of historical policies and has pursued coverage claims against numerous insurance companies; and WHEREAS, Resolute Management, as claims handler for National Indemnity Company and Travelers Insurance Company, part of the Travelers Insurance Group, as successor to United States Fidelity and Guaranty Company ("USF&G"), has agreed to pay fifty percent (50%) of the defense costs subject to approving the hourly rates of Outside Counsel and their staff and has also pre -approved an hourly rate for attorneys who are employed by the Office of the City Attorney ("OCA") of $175.00 and paralegals who are employed by the OCA of $75.00 in the case of Styles, et al. v. City of Miami, et al., Case No. 17-022967, pending in the Eleventh Judicial Circuit in and for Miami -Dade County ("Styles"); and WHEREAS, the contingency fee compensation of Outside Counsel would be thirty five percent (35%) of dollars received by the City from the insurers; and WHEREAS, this settlement does not waive or otherwise address any areas not specifically set forth including, but not limited to, the defense of other claims or the indemnification of this or any other claim; and WHEREAS, the OCA has investigated this claim for defense fees and costs in Styles and recommends that said claim be settled; 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 is fully set forth in this Section. Section 2. Payment from Resolute Management, as claims handler for National Indemnity Company and Travelers Insurance Company, part of the Travelers Insurance Group, as successor to USF&G, to the City of fifty percent (50%) of the defense costs subject to approving the hourly rates of Outside Counsel and their staff and the pre -approved hourly rate for attorneys who are employed by the OCA of $175.00 and paralegals who are employed by the OCA of $75.00 in the Styles is accepted. Section 3. The City Manager is authorized' to execute any and all necessary documents, all in a form acceptable to the City Attorney, to effectuate the Settlement as to partial payment. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: l i ria i ' ndez, Cify Attor iey 8/30/2019 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.