2018 2:00:00 PM

Monday, February 12, 2018 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.5

Title: Consideration, discussion, and possible decision regarding a settlement offer for a personal injury claim in the amount of $28,000.

Petitioner/Presenter: Chester H. Adams, City Attorney/Alyson McCormick, Assistant City Attorney II

Recommendation: City Council accept the settlement offer made by Rene House.

Financial Impact: An expenditure of $28,000 will be required if the City Council accepts the settlement offer.

Total Costs: $28,000.00

Fund: Municipal Self-Insurance Account: 603260
Program: Admin/Premium (Non Claim) Transactions in Muni Ins Fund (050515)
Amount: $28,000.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

This agenda item asks the City Council to consider and decide whether to accept or reject a settlement offer relating to a personal injury claim against the City.

Background:

In November 2016, Rene House was involved in a motor vehicle collision with a City of Sparks vehicle driven by a City of Sparks employee. Through the Risk Management Committee, the City settled Ms. House’s insurer’s claim for property damage in the amount of $18,602.19 in May 2017. The property damage settlement did not include damages for personal injury, the extent of which was not yet known at the time. As of December 13, 2017, Ms. House had incurred medical costs in the amount of $17,863.26, which she alleges were necessary due to the collision.

Through counsel, Ms. House previously sent a demand letter to the City of Sparks, seeking to settle Ms. House’s personal injury claim for $42,000. The City Council rejected that offer on November 13, 2017. Subsequently, under the authority of the City Manager, the parties reached an agreement to settle Ms. House’s claim for $24,000, but a formal settlement agreement was not signed. On December 13, 2017, Ms. House’s attorney sent additional medical records and bills that had not previously been provided to the City and demanded $28,000 to settle Ms. House’s claim.

Analysis:

The City Attorney recommends accepting Ms. House’s settlement offer of $28,000.

Alternatives:

The City Council Could accept Ms. House's settlement offer.

The City Council could reject Ms. House’s settlement offer.

Recommended Motion:

Acceptance of Demand:

Based on the advice of the City Attorney’s Office, I move to accept Rene House’s offer to settle all of her claims against the City for $28,000.

Rejection of Demand:

I move to reject Rene House’s settlement offer of $28,000 to pursue further negotiations or formal litigation of Ms. House’s claim.

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