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• ~~~~~E~,T ~~~~~N Profe~.iional A~ciacion Arrorz1eps at Law . . Thomas ). Gampbcll (612) 4SZ-7Q00 Jrie] ). ):unnik lZn~'e71V. [uwc3<~n 1 A-xtrri ~ltt~uwei( f~nh•r i numas yS. S«~~L Fa.~C (61Z~ 45..-5?SC ~ta;;!~.r~ K. Finrict• E1Nna ? ?Cr~s~ch J<~hn F. KallY Susan Lta Pocc Mautaur J. h~Ii Msr~u~tiro M. ytctracron Santl3rY ~, 199$ fsrucRc T. SsxptuR~~e VIA FACSIlViII.E TZtANSMISSION -.~:.~~..,~~~~~~, AND U. S. 31~A1'L W°""`'' G+rx G. Fuchs Ms. Susan Hoyt City Administrator City of Falcon Heights 2077 West Larpenteur Falcon Hezehts, Minnesota 5~i13 Dear Susan: You asked for our advice/opinion regarding the option provided to the Ciry ta waive the monetary limits oa municipal tort liabi7,ity as part of obtaining liability coverage from the League of Minnesota Cities Insurance Trost. • ' The gaestion posed is prhnazily a policy mauer having few practical legal ramifications. The reason for this is that contrary ~ PoP~r P~~~ fe~v damage claims approach $300,000 per claimant If the limits are waived there is• the potential, however slight or remote, that I.~'YICTT will pay more for a claim than it would have if the City did not waive the ciazm. Conversely, if the limits are oat waived, there is the poss bility that i.MCIT will pay less on a pazticuiar claim. One's perspective of the issue is a primary detriment {taxpayer, dafP~an Plaintiff}, as is one's goiiticai ghiiosophy. In my opinion, the Ciry that waives the limits at the time of obtaining coverage uzznecessarily sacrifices a settlement point or statutory protecrion too early in the process. i am enclosing a more detailed discussion of the pros and cons of waiving the limits which was prepared by Pete Tritz, the Director of I.~1~tCIT. Please note that the waiver endorsemem issued by L11~SCTT would result in a higher premium for the City. It may be helpfu.i to find out from I.1viCIT the cast of the waiver. Two additional points map be of interest First, about half of all LMCTT members have clwscn against waiving tine limits. Second, because most of Falcon Heights' neighbors or large institutional citizens are self- - insured, they do not have, the option to waive their statutory limiu except as rases are sealed or derided_ It may be easier to mana;e multiple party litigarion imTolving these other entities and the City if ~ a1i the parties share the same risk. • Suite 317 F:igandale Office Ccnccr • 1380 Cc~r~~rate Center Curve Eatian, ~ 3~ 1? 1