Agenda Item   



                                                                                                                        ASR Control  23-000844




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


Approved Resolution to Form




3 Votes Board Majority




    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: N/A




    Staffing Impact:


# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     Liability ISF Fund 294: 100%

County Audit in last 3 years: No

   Levine Act Review Completed: N/A


    Prior Board Action:         6/20/2000 #44




Adopt Resolution superseding Resolution 00-202 delegating authority to County Risk Manager to settle pending actions and pursue subrogation matters.







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.  






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. 






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.











Attachment A - Risk Management Policy Reso 23-000844
Attachment B - Risk Management Policy Reso 00-202