HomeMy WebLinkAbout4.8 Support Reform of Tort Liability Laws &(o- 40
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 25 , 1985
SUBJECT Resolution Supporting Legislation which will reform
Tort Liability Laws
EXHIBITS ATTACHED Resolution; List of related League-supported bills
RECOMMENDATION Adopt the Resolution and direct copies to Assemblyman
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Baker Senator Lock er and League of California Cities
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FINANCIAL STATEMENT: None
DESCRIPTION At the regular City Council meeting on February 25 ,
1985-, the City Council acted on the 1985 City liability insurance program.
This action was taken after receiving a one-month extension to the City ' s
prior insurance policy to allow the City' s Insurance Broker to place the
insurance .
Given the difficulty experienced in finding insurance companies who would
write insurance for a public entity and the dramatic increase in the cost of
the insurance program, the City Council requested that Staff develop a
resolution which would address the problems experienced by public entities .
The 1985 City of Dublin Insurance Program costs were over 650/ more than the
previous year. Several insurance companies have terminated their
participation in the municipal market . This results from several factors
including impacts of the general economy. In addition, several awards
against public entities have been made in which the entity had only a small
amount of responsibility for the loss . The League of California Cities has
outlined several cases where cities have been held liable . This area has
become a major concern to the League of California Cities and they are
requesting the cities support new legislation to address this area of law.
Attached is a brief outline of the 7 bills supported by the League .
Another tool which has been used by public agencies to reduce the cost of
insurance is the creation of an insurance pool . This concept involves
agencies attempting to achieve an economy of scale through a group purchase
of insurance . It should be noted that in the current insurance market , even
joint powers authorities have not been as successful in obtaining reduced
insurance costs . The Contra Costa Cities Insurance Joint Powers Authority
experienced a 4472% increase , Orange County Cities Risk Management Authority
had a 409/ change and Redwood Empire Municipal Insurance Fund experienced an
increase of 327/. Another consideration is the diverse types of organiza-
tions found within cities . For example , some cities operate hospitals ,
jails , and other public services which create potential liabilities for
agencies providing different types of services .
The draft resolution suggests that the League of California Cities should
investigate an insurance pooling arrangement and determine some of the
advantages and disadvantages of this program. In addition, the resolution
indicates the City ' s support for current legislation which will address the
reform of tort liability laws .
It is recommended that the City Council adopt the resolution and Staff will
direct copies to the appropriate State Legislators and League of California
Cities representatives .
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L / COPIES T0: Ben Fernandez , Insurance Broker
ITEM N0 . T. 6
RESOLUTION NO . - 85
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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SUPPORTING LEGISLATION WHICH WILL REFORM TORT LIABILITY LAWS
AND INVESTIGATION OF A LEAGUE SPONSORED
INSURANCE POOLING ARRANGEMENT
WHEREAS , the City of Dublin found very few insurers
willing to bid on the City' s 1985-86 Liability Insurance Program;
and
WHEREAS , the 1985 insurance program costs were over 650/
more than the previous year; and
WHEREAS , in part the high costs of municipal insurance
is a direct result of a legal system which awards damages without
considering an entity' s percentage of responsibility for a loss ;
and
WHEREAS , several bills which address this issue have
been introduced in the current session of the California
Legislature ; and
WHEREAS , the bills include SB75 (Foran) , AB230
(McAlister) , SB934 (Seymour) , SB433 (Bergeson) , AB2456 (Connelly) ,
AB1256 (Campbell) and SB885 (Maddy) ; and
WHEREAS , in addition to legislation, the high cost of
municipal insurance may be addressed through a League of
California Cities sponsored insurance pooling arrangement .
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Dublin does hereby support Legislative efforts which
will reform tort liability laws ; and
BE IT FURTHER RESOLVED that the City Council of the City
of Dublin encourages the League of California Cities to
investigate opportunities for insurance pooling among members .
PASSED , APPROVED AND ADOPTED this 25th day of March,
1985 .
AYES :
NOES :
ABSENT :
Mayor
ATTEST:
City Clerk
CURRENT LEAGUE-SUPPORTED BILLS TO REDUCE EXPOSURE TO "DEEP POCKET" SUITS
SB 75 (For n)
This bill would provide plaintiffs with full compensation for out-of-pocket
expenses , such as medical bills, property damage, wage loss. But the bill would
limit defendants ' liability for intangibles , such as pain and suffering, to no
more than each defendant's degree of responsibility for the injury.
For example, a defendant who is 10 percent responsible would pay 100 percent of
a plaintiff's medical bills and 'lost wages (if other defendants were unable to
pay) , but would pay only 10 percent of damages awarded for pain and suffering.
SB 934 (Seymour)
This bill would limit a defendant's payment of damages to the defendant's degree
of responsibility for an accident, when the plaintiff's negligent failure to
wear a helmet when riding a motorcycle is a greater cause of the plaintiff's
injuries. - ...
SB 230 (McAlister)
This bill would limit a defendant' s payment of damages to the defendant's degree
of responsibility for an accident, when the plaintiff's negligent use of alcohol
or drugs is a greater cause of the . plaintiff's injuries.'
-. AB 2456 (Connelly)
This bill would increase the mandatory automobile liability insurance coverage
from $15,000 per injured person and $30,000 total per accident to $50,000 per
injured person and $100,000 per accident.:"'
J_ •�. .SB 433 CBergeson)
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This bill would ensure that providing services to or the making of improvements
on unimproved public property would not cause a city to lose its immunity from
liability for injuries caused by the natural, condition*of unimproved public
property, if the primary cause of a plaintiff'.s injury ,is natural forces. . This
bill would reverse a recent court decision:
1 , 1
AB 1256 (Campbell )
This bill would enable cities to pay large judgments in installments, rather than
in a lump sum.
SB 885 (.Maddy)
This bill would protect public entities from liability in cases where they rescue
persons in boating accidents.
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