HomeMy WebLinkAboutPR 19500: SETTLEMENT AGREEMENT WITH FARM BUREAU INSURANCE COMPANY, PERSONAL INJURY Energi —
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Texas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: August 30, 2016
To: Brian McDougal, City Manager
From: Lisa Colten, Assistant Director of Human Resources
RE: A Resolution Approving a Settlement of a Personal Injury Subrogation Claim in the Amount
of$20,000 Made Against Carrissa Viltz and Farm Bureau Insurance Company
Nature of the request: On August 27, 2014, City of Port Arthur Paratransit Van #225
(2009 Ford Econoline Van), driven by City employee Angeline Williams, was struck by a
vehicle driven by Ms. Viltz. Police investigation revealed that Ms. Viltz was responsible for the
incident so a claim was made against her insurer, Farm Bureau Insurance Company.
Staff Analysis, Considerations: Farm Bureau Insurance Company has offered to settle this
personal injury claim for policy limits of$30,000, with the City receiving two-thirds ($20,000)
and Ms. Williams and her attorney splitting the remaining one-third ($10,000). This will avoid
expensive litigation and make the City as close to whole as possible.
Recommendation: I recommend approval of Proposed Resolution No. 19500 authorizing the
settlement against Ms. Viltz and Farm Bureau Insurance Company for the personal injury claim
of Ms. Williams, in the amount of$20,000. This is considered a fair and reasonable settlement.
Budget Considerations: The funds received will be deposited in the Workers Compensation
Fund#610-1701-583.67-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.R. No. 19500
8/30/16 LJC
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
SETTLEMENT AGREEMENT BETWEEN THE CITY OF PORT ARTHUR
AND FARM BUREAU INSURANCE COMPANY PERTAINING TO A
PERSONAL INJURY SUBROGATION CLAIM IN THE AMOUNT OF
$20,000.
WHEREAS, on August 27, 2014, City of Port Arthur Paratransit Van #225 (2009 Ford
Econoline Van), driven by City employee Angeline Williams, was struck by a vehicle driven by Ms.
Viltz; and,
WHEREAS, Ms. Viltz is insured by Farm Bureau Insurance Company; and
WHEREAS, as a result of the accident, the City of Port Arthur has paid $30,547.65 in
Workers Compensation benefits for injuries that the employee sustained; and,
WHEREAS, Farm Bureau Insurance Company has offered to tender the policy limits of
$30,000 in order to resolve the pending claim against its insured; and
WHEREAS, the proposed settlement will allow the City to accept a lessor amount of
$20,000, wherein the injured employee will receive the remainder for outstanding medical expenses
and attorney's fees.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR, TEXAS:
Section 1. That, the facts and opinions in the preamble are true and correct.
Section 2. That, the City Manager is hereby authorized to execute a settlement agreement
with Farm Bureau Insurance Company in the amount of $20,000 as settlement of the City's
subrogation claim in this matter.
P.R.No. 19500
8/30/16 LJC
Page 2 of 2
Section 3. That the net amount received by the employee will be used as a credit against
future Workers Compensation expenses, if any, as provided by Section 417.002(c) Labor Code
V.T.C.A.
Section 4. That, a copy of this Resolution be spread upon the minutes of the City Council.
READ, ADOPTED, AND APPROVED this day of , AD, 2016, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor , Councilmembers
NOES: .
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVE P AS TO FORM:
VO c
Val Tizeno y A •
40
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager