2019 2:00:00 PM

Monday, March 11, 2019 2:00 PM
Council Chambers, Legislative Bldg, 745 4th Street, Sparks, NV

General Business: 9.7

Title: Consideration, Discussion, and Possible Decision regarding a Settlement Offer in the amount of $500,000.00 for a Personal Injury Claim.

Petitioner/Presenter: Chet Adams, City Attorney/Alyson McCormick, Asst. City Attorney

Recommendation: The City Attorney’s Office recommends that City Council reject the settlement offer made on behalf of Matthew Wright.

Financial Impact: An expenditure of $500,000.00 will be required if the City Council accepts the settlement offer.

Total Costs: $500,000.00

Fund: Municipal Self-Insurance Account: 603260
Program: Police in Muni Ins Fund (050522)
Amount: $500,000.00 Budget Status: Over Budget (See Budget Correction Plan)

Budget Correction Plan:
An expenditure of $500,000.00 will be necessary if the City Council accepts the settlement offer. This expenditure would come from a Risk Account.

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 May 2017, Matthew Wright 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 Mr. Wright’s insurer’s claim for property damage in the amount of $5,698.57 in August 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 October 30, 2018, Mr. Wright had incurred medical costs in the amount of $55,913.19, which he alleges were necessary due to the collision. Mr. Wright further alleges that he has continued to seek additional medical treatment.

Through counsel, Mr. Wright submitted a claim form to the City of Sparks, seeking to settle Mr. Wright’s personal injury claim for “$500,000.00 minimum.”

Analysis:

The City Attorney’s Office recommends rejecting Mr. Wright’s settlement offer of $500,000.00.

Alternatives:

The City Council could accept Mr. Wright’s settlement offer.

Recommended Motion:

Rejection of Demand:

Based on the advice of the City Attorney’s Office, I move to reject Matthew Wright’s settlement offer of $500,000.00 to pursue further negotiations or formal litigation of Mr. Wright’s claim.

Acceptance of Demand:

Alternatively, the City Council could decide to accept Mr. Wright’s settlement offer. If the City Council decides to accept the settlement offer, the motion should state:

I move to accept Matthew Wright’s offer to settle his claims against the City of Sparks for $500,000.00.

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