Agenda Item AGENDA STAFF REPORT ASR
Control 23-000844 |
||
MEETING
DATE: |
10/31/23 |
|
legal entity taking action: |
Board
of Supervisors |
|
board of supervisors district(s): |
All
Districts |
|
SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
|
Department contact person(s): |
Michael
Alio (714) 285-5510 |
|
|
Gary
Stopforth (714) 285-5520 |
|
Subject: Risk Management Authority to Settle
Pending Actions
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
||||||||
Concur |
Approved
Resolution to Form |
Discussion |
||||||||
|
|
3
Votes Board Majority |
||||||||
|
|
|
||||||||
Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: N/A |
||||||||
|
|
|
||||||||
Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
|||||||
Current Fiscal Year Revenue: N/A
|
||||||||||
Prior Board Action: 6/20/2000 #44 |
||||||||||
RECOMMENDED
ACTION(S):
Adopt Resolution superseding
Resolution 00-202 delegating authority to County Risk Manager to settle pending
actions and pursue subrogation matters.
SUMMARY:
Adoption of the Resolution will
increase administrative efficiency in the settlement of lawsuits, streamline
the process of paying obligations owed by the County as a result of litigation,
allow the County Risk Manager to continue its practices of protecting the
County against financial losses by the delegation of specified authority to
settle pending actions by negotiating a lower amount following an adverse jury
verdict prior to final judgment, and pursue subrogation matters in small claims
or Superior Court when claimants refuse to pay owed damages.
BACKGROUND
INFORMATION:
On June 20, 2000, your Honorable
Board approved Resolution 00-202 to continue allowing the County’s Risk Manager
the authority to settle liability and workers’ compensation claims that are
less than $50,000 and for the Board to continue its role as the sole authority
to settle liability and workers’ compensation claims that are greater than
$50,000.
For efficiency and as a
cost-saving/avoidance measure, the current Risk Management procedure allows the
County Risk Manager, or designee, to work with plaintiff attorneys, after an
adverse jury verdict, to negotiate fees and costs on a judgment prior to
interest accruing and/or the court awarding exorbitant fees. This request confirms and clarifies that
delegation of authority for administrative efficiency in the settlement of
pending actions avoid higher than necessary costs for the County of Orange. The
County Risk Manager will provide notice to your Honorable Board of Proposed
settlement actions.
CEO/Risk Management does not
currently pursue subrogation in small claims or Superior Court as there is
currently no authorized mechanism in place to collect from individuals who
refuse to pay for damages caused to County property. Approval of the Resolution
will allow CEO/Risk Management to file in small claims or Superior Court on
matters that require legal intervention to recover money rightfully owed to the
County.
FINANCIAL
IMPACT:
CEO/Risk Management
litigation-related expense is budgeted in Liability Internal Service Fund 294.
Approval of the Resolution could result in increased revenue related to
recovery of costs for damages, and will allow CEO/Risk Management to continue
to reduce costs associated with adverse jury verdicts.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Risk Management Policy Reso 23-000844
Attachment B - Risk Management Policy Reso 00-202