HomeMy WebLinkAbout2014-156 RESOLUTION 2014-156
APPROVING WORKERS' COMPENSATION CLAIMS ADMINISTRATION
AGREEMENT
BE IT RESOLVED,by the City Council of Stillwater, MN that agreement between the
League of Minnesota Cities Insurance Trust and the City of Stillwater,for Workers
Compensation Claims Administration, as on file with the City Clerk,is hereby
approved.
BE IT FURTHER RESOLVED,that the Stillwater City Council authorizes the Mayor
to sign the contract.
Adopted by the City Council of the City of Stillwater this 7th day of October, 2014.
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Ken ar, , Mayor
ATTEST:
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Diane F.Ward, City Clerk
MAGNUSON LAW FIRM
LICENSED IN MINNESOTA AND WISCONSIN
THE.GRAND GAR/VJE
324 MAIN STREET SOUTH• SUITE 11260• Si ILLWATER,MN 55082-5165
'IT'EptIONE: (651)439-9464 • FACSIMILE: (651)439-5641
WWW.MAGNUSONLAWFIRM.COM
DAVID T.MAGNUSON CASI R.BUTTS
DIMAGNuSON@MAGNUSONLAWFIRM.COM CRB@MAGNUSONLAWFIRM.COM
MEMORANDUM
TO: Mayor and City Council
FROM: David T. Magnuson
DATE: October 1,2014
RE: Self-Insured Litigation
On September 11th of this year a Worker's Compensation Petition was filed on behalf of a
former city employee claiming that the employee developed Mesothelioma that arose out of his
employment with the City during the period from January 1St, 1977 through January 1st, 1986
when the City was insured by Home Insurance Company. The case was forwarded to the League
of Cities, who forwarded the Claim to the Minnesota Insurance Guaranty Association since
Home Insurance Company has long been insolvent The Guaranty Association refused coverage
on the basis that Minnesota Statute 60C.09 Subd. 2. Par. 3 does not allow coverage since the net
worth of the City exceeds $25,000,000. This means that the City is self-insured regarding this
claim.
The City must provide for the defense and funding of the claim. The recommended option is to
contract with the League of Cities for that service. The League provides a claim adjuster and
will assign the defense to Tom Cummings, of the firm of Jardine, Logan and O'Brien, PLLP.
The League will bill the City an annual administrative fee of$1200 and quarterly for the claim
costs that have been paid. The League adjuster is experienced in this area, and since
Mr. Cummings has already deposed this employee in a related, but covered claim, defense costs
should be reasonable. If this arrangement is acceptable to the City, the attached agreement
should be approved and the Mayor should be authorized to sign. Please let me know if you have
further questions.
Respectfully,
David T.M.: . on
Stillwater Ci rney
DTM/jp/Attachment