HomeMy WebLinkAbout2016-063 (Approving Settlement Workers Comp) RESOLUTION NO. 2016-063
CITY OF STILLWATER
WASHINGTON COUNTY, MINNESOTA
A RESOLUTION APPROVING SETTLEMENT
WHEREAS, a workers' compensation claim was brought against the City of Stillwater
("City") by the surviving spouse of Jeffrey Junker, Sr. for benefits resulting from the death of
Jeffery Junker, Sr. who was alleged to have contracted mesothelioma from exposure to asbestos
while working as a City public works employee, and;
WHEREAS, the City has been represented in the proceedings by Thomas L. Cummings
of the firm of Jardine, Logan and O'Brien, P.L.L.P. a lawyer assigned to the case by the League
of Cities Insurance Trust ("LMCIT"), and;
WHEREAS, during the time the cause of action arose, the City, as well as other
Minnesota Cities were insured by Home Insurance, an insurance entity that became insolvent
before this case was brought, and;
WHEREAS, since Mr. Junker continued to work for the City and allegedly continued to
be exposed to asbestos when the City became subsequently insured by the LMCIT, an agreement
was reached that the settlement of this claim would be paid 50% by the City and 50% by the
LMCIT, and;
WHEREAS, some smaller cities and businesses are entitled to be covered from a
guaranty fund established for claims no longer covered by insurance due to the insolvency of
Home Insurance, however, the market value of the City makes it ineligible for coverage from the
fund and the responsibility for the payment of the City's share of benefits in the case is unfunded
and uninsured and must be paid from City funds, and;
WHEREAS, negotiations have been concluded by the Mr. Cummings of behalf of the
City and a lawyer for LMCIT and the lawyer for the surviving spouse of Jeffrey Junker, Sr. and
the recommended settlement appears to be in the best interests of the City;
NOW THEREFORE BE IT RESOLVED THAT:
1. That the Stipulation of Settlement is hereby approved.
2. The City's share of the settlement in the amount of $133,150 plus an amount of an
approximately $19,000 assessment that must be paid to the Department of Labor and
Industry Special Compensation Fund is to be paid initially from the General Fund of the
City.
Enacted by vote of the Stillwater City Council this 22nd day of March, 2016.
CITY OF STILLWATER
16-2412
Ted Kozlowski, Mayor
ATTEST:
Diane F. Ward, Clerk
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