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Home My WebLink AboutResolution 5854 . . . RESOLUTION NO. 5854 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS WHEREAS, the City of Mounds View has been involved in two litigation matters entitled Wallace Mortenson v. City of Mounds View, and City of Mounds View v. Leland Waqner, as a result of an automobile accident on May 19, 1997, involving City of Mounds View employees; and WHEREAS, Jon K. Iverson of the law firm of Iverson Reuvers, LLC, through the League of Minnesota Cities Insurance Trust, represented the City in the above-mentioned litigation matters; and WHEREAS, Mr. Iverson is recommending that the City settle the above-referenced matters as well as execute a Release regarding such matters, as set forth and detailed in Mr. Iverson's written correspondence to the City dated June 26,2002, and June 19,2002, written correspondence to LMCIT, which are attached hereto and incorporated into this Resolution; and WHEREAS, the City desires to settle the above-referenced matters as recommended by Mr. Iverson. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View that the City agrees to accept the settlement, as recommended by Mr. Iverson, involving the matters of Wallace Mortenson v. City of Mounds View, and City of Mounds View v. Leland Waqner. BE IT FURTHER RESOLVED that the City, in authorizing the settlement of the above- referenced matters pursuant to the recommendation of Mr. Iverson, also authorizes the Mayor and Clerk-Administrator to execute the Release provided by Mr. Iverson regarding these litigation matters, as well as any other documentation necessary to settle and resolve the above-referenced litigation matters. . . . Resolution 5854 Page 2 Passed and adopted this 23rd day of September, 2002. ATTEST: ~ ~~ --- Richard Sonterre, Mayor SEAL ) , . ./ ;"- '- 1< r-Lj/Lt- ~j-'-))LUI~ Kathleen k Miller, City Administrator Motion by: Quick Seconded by: Thomas Sonterre Aye Quick Aye Stigney Aye Marty Aye Thomas Aye , . . . IVERSON RElJVERS, LLe At10rneys ut Law Juri K. IVI;:r.,Jon Pa...l J), Reu...ert> l-on 1. .Kl.lbol.1sheok 1(",;' It C"hn 230 Townline Plaza S.585 ,1/ est 78th Street Bloomington, Minnno[~ 554-38 Telephone: 9.52.54-8.7200 F:J.csirnHl!: 052.946.1501 JOII K. ITt;;nJero l)irC:l;t; 952.5+8, no+ jJ~non@J"I'cl:$onJaw.~om June 26. 2002 VIA FAC~TMTI,E (76]-784-3462) Givonna Reed MsisLanl City Administrator City of Moundsview 240 I Highway 10 Moundsview, MN 55112-1429 RR Employee: Wa.lly Mortenson Employer: City of MoundsviClw Date of Injury: SJ] 9/97 LMCIT Claim No: 2~g21-350932-T4 Defendant: Leland Wagner Our File No; 10001.0732 De3.1" Ms. Reed: Patty Prentice has asked tbat 1 forward this letter to you as all explanation ofthe settlement of the ctiptioncd maUer. Former Cily of MOUTldsview employee Wally Mortenson was injured in aT! automobile accident occurring on May 19. 1997. Mr. rvlorlenson Wag a passenger in a City vehicle when it was r~arended by Leland W:rgner. Mr. Wagner's insurer was Wcst,=m National lns'.Jl":;j,nc&:: Comp:i1J'lY, Th@y had policy limit.:; ofSlOO,OOO, of which Mr. Mortenson settled his porlion ofthe claim for $50,000. Therefore, S50tOOO remained for our subrogation claim, of which we rccentl~' received a setLlemen1 check for $45,000. The settlement included a11 subrogation interests found in Minn. SiaL ~ 176.[J61. specifically including the City of Moundsview's increase in premium claim found in Minn. Sbrt. g176.061, Subd. 8. For purposes of calculation, with the reserves includc:d, 1 was advised the City's increase in pre:nium claim totaled $21,236. The workers' compensation benefits paid to OT on behalf of Mr. Monenson totaled $62,864.60. Obviously, the increa.se in premium claim will be less, because 1h!.'! workers' comp~nsatjon p~yments have been l:;:ss than the reserves. and this subrogation recovery will be applied to the City's rating, lowering the actua.l increase in premium claim. Rout~nelYJ that separate claim is waived.as part of these subrogation recoveries. Because the calculations are veTY difficult and because they fiudu<lte depending upon the total recovery, it is difficult to put a precise:: dollar amounl on the claim. ~:0/ZCC.;~ ~~:C;~ :5'~::"':".2::~ NCS-::.:\.: T.JS": 9~;S ,.: .:.: ... - \) ~: .; .: ';7": ~::J (J z ~ 9 ;?; ~ ~,~~,.::! . . . JU'ne 26, 2002 Page 2 In this case, because we recovered approximately 53.5 perr.:ent of the absolute maximum we could recover (which was rcclw:ed by the available insurarrce limits) and~ rurlhcr~ b(;cause Lhe City's claim is roughly 25 percent of the subrogation claim, I recommend the City take $5,000 out of the current $45,000 scttk.menl proceeds with the balance being applied to this claim, reducing the inc.Tease 1n premium claim even further. T do not pretend to understand haw premi Urns are calculated by the League of Minnesota. Cities Insurance Trust Essen Lially . premiums and payments are city monies anyway plltSllant to the organizational structure. I am not involved in determining what money goes where. I apologize I cannot explain it any better. J have forwarded the $45,000 ~hE!ck to Patty Prenlice. which includes a slgnatura line for the City of Mounds view and the League of Minnesota Cities InsllT211c:e Trust. ~ well as my office. 1 have endorsed the check from my standpoint and I need the City and the League to sign the check, as well as the attached Release. Enclosed is a copy army recent letter to Patty Prentice. I understand you have talked with her about this matter. As soon as 1 obtain the fully executed Releasc and return lhat to Leland Wagner's attorney. we win be In a position to close our file. Please contact me for a better explanation of this seUlement than I am able to provide! in writing. 1 suggest a conference call with your office. Ms. Prentice and myseIfta expedite th~ resolution of this rnalter. Thank you. Yours truly. ~~ERS.LLC Jon K. Iverson JKI:be Enclosures cc: Pa1.ty Prentice, LMCI"f .... .... ,... ... .... ~ r ~;; ....' ~ .::" ~ .; U. '!' c." ,.., t"'! ':'1' ,'\.-:;':.. '!".- " . . . ~....",...,. """ -. ,... .1 v~RSON REUVERS, LLL. Atwmc)'llllt Law ' IDa K. Ivcacn P:1W D. Reu1'c:rs ]aaanj. Kuboushek !Wi E. Cohn 230 T ownIine Plaza 8S8S West 78"14 Street Bloomington, Minnesota 554.38 Telephon=: 952,548,7200 Facsim.i.1e~ 952.9-1-6.1501 Ian K.lvc:nan D1r=ct: 9S2.S+S.72Gf. lho-cnon@tv~I1Lrw,CCllm June 19.2002 Ms. Patty Prentice LMeIT Claims/Property Casualty 145 University Avenue West St. Paul. MN 55103-2044 RB: W:i1lace Mortenson v. City afMoundsview Date oflJijuzy: 5119/97 Your Claim No: 2-821-350932-T4 Dear Ms. Prentice: I am pleased to enclose the .settlement check received from Western National MutUallnsulance Company in the amount of $45,000_ You will note the check has been made payable to the City cfMoundsview, the League ofMi.1mesota Cities Insurnnce Trust and my office. 1 have ~dUISed the check from my standpoint. Please obtain the endorsement by the City of Mounds view on the check, as well as on the attached original Release. You will note there is a signature space for th1: League ofMim!esota Cities Insurmee Trust em page 2. Once those signatures are obtained, return the doc:um.ent to me in the enclosed envelope and we wll1 be in II. position to close this file. I am not sure who you havs been dealing with at the City o:fMcnmdsvicw. As yeu know, the limits ofinsuIance coverage for Leland Wagner were $50.000. We gave a small disoount off those policy limits to resolve this matter without further litigation. I will leave distributiOIJ. of 1his settlement in your able hands. Please rerum the original Release as soon as possiblo. I will then forward that dO<:UIIle.at on to Attorney Martin and we can consider this matter closed in its entirety. As soon as that lJa?pens, we 'Will issue our:fiIJal st:aJ:ement far services. In the interim. please do not hesi.tat: to contact me if you have any questions or .comments. Yours truly. IVERSON REUVE.RS, LLC Jon K.. Iverson. JXI:be B:acl~.;sul''::f;S I ....... ~....... ~ - ....~_........); ._ ..,.. _ .-'\ =- ~ .~..... .,. ..:J....,. :-, -. ...,;: ~~ ,'6 '":} .., -:' i :,'.',"' ,"; ~VVV' ,",VI -.... - . JallIeS T _ Martin Suite 444 '500 ParklAwn Ave..'"1ue sout.h Edina HN 55435 o ... ...... - WESTsn. NAl10NAL UUTUAl rNSURAHCS COMPANY .., ~ 7I'T)i 1mIE8f, MN~ ~Io/ IlIW3I INSURED NAMe Leland M & Pat~ieia Wagn POUC:V NUMBER 222:838970 CLAIM NUMBER OATE OF LOSS 03000164,07 -PA 5119/51 iAX10# #4.1-199.9743 PAyeE: NAMe ity of MOun415 Vi.ew lln4 ague cf M1=aeBct.a C~t1ee !nsurance Trust and ~on K. ~e~SQn. t4=i~ ~~tcrne CHECK DATE 5/05/02 CHECK NUMBER CHECK AMOUNT 466159 4$.000.00 PJ-VMI;Ni C~SC::RIPTION: Se::.1ement of Plaintiff MO\J%1aa View's sul:lrogatio:tt interest regarding its emplQyee Wal1ac:e MorteI1~cn ~1.1 :01.....<\ :., ~ .... ~ -.....l!l JJ" I '..... "" ,. . "'-i/ I..J __.C':! ...J. ,,,,,,Jr.,..,...4;: nl~'1"::'.~ .: 0 ~ 1; 0 1 i; 9 21. ~~ 0 2 a~f b t; m ~ 6:] :; iJ8 ~~~^r~~ ~~~V~^7 ~~=~ ~~~ 7C~ 7:~~T ~nn7.1~JM~: 09/0-3/02 13: 38 F.'\X 612 7 S.J. :'HG2 C 1 'l'~~ fll~' )1\1 .- '"'""' . RELEASE In ~ of payment to the undersigned in '!be ~ of Forty-five Thousand am! nallOOths ($45,000.00) no11a<S. rccc:ipl~...eof", hereby m:knowledged, the uod<<siP do boreby foICYex n:loase and dis<;balge Lelll1ld and Patricia Wagner from my liabillty wbatsoeve:r arising in my Wf<1 wi of tho! certain acddeo1 that ,",caned on May 19, 1991 resulting in it\iury to WsIl- MortenSOn and Larry neCbeir1c. on ...ms. bcbalf, tho undersigllO'lbave made payments under the workm"!". ~ system and'os a COIlSe<J.=C of which the ""derSgnod have oblaiDed certain subrogalicD rights against the persDIIS roleased hereunder. It la ..xp!OSSly und=od and ag<eed tho! the pa:ymcr1i!JeleUllder islntended as the CCII1J>!ODlls. and setll""'cnt of disputed claimS. including e\llimS by the ll%l&rSigned feI maeased wOIkezs' c:ompensaticm premimrlS and s1I otbOI . dmnages of 1I1JY kiod. Thls Release ineludes !be satisfaction of my and oll clsims 1lm1 bave been brought or could bave been broug!l1 in that certain lltigati"" entitled CiIy ofMoundsvleW v. Leland Wagnef.. RamSeY County 'District Court File No: 62-C3-01-00S703. IN WITNESS WHERllOF, tDe undersigned have hereuDID afIix=d tbllir siglJll!mes this r. ,;i3,'\. cL day of ..:l12QA,,jaL 2002. through their autb.orlzed replesentBti:ves. __ I ::) CITY OF MOUNDSvre,W , . _,'.....".,....../ ,,. , -.J-.----. '.. -,' ; i ~ CtA-Ivch/ '--ry--: /! i)~CL-,_: "\ ,..",...,,-.-- ~ i =') Y -----.- . . ..; /VJ II Y D ;.<_ (~t dJ~(I(1 J".\(;d Co \c1 S(,i.~'("(/) be. (c,/?' "'.J ,,' ..;\" _J -, J I ", r'- ':"".. n l( 0) -II)J ') r~;J dUd c+ CthJJ( j / ,1--,\', "(,, "J . .--Jl ~". ., , -. i 7 . -...,-" -. J.) J : /~'~;': .,)i -. {( i'i;j.!~" ! ''''' L t..!.. ",,", ...-.' l -. ,'-ll\.. '''-. ~.{)qH,~",,~_'H>"~fP".t ;J: DESAREE M CRANE. '" i Notarj Public Minnesota *. \~~1:"g i' ~.~ My Commission E~plres 1/3112005 ~ ....,~~:>-,"v.;>.I}.>>~.'i,>~~,}.i";"'i"';l,..;;>,j',..}>.;/~ . . . . RESOLUTION NO. 5854 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS WHEREAS, the City of Mounds View has been involved in two litigation matters entitled Wallace Mortenson v. City of Mounds View, and City of Mounds View v. Leland Waqner, as a result of an automobile accident On May 19, 1997, involving City of Mounds View employees; and WHEREAS, Jon K. Iverson of the law firm of Iverson Reuvers, LLC, through the League of Minnesota Cities Insurance Trust, represented the City in the above-mentioned litigation matters; and WHEREAS, Mr. Iverson is recommending that the City settle the above-referenced matters as well as execute a Release regarding such matters, as set forth and detailed in Mr. Iverson's written correspondence to the City dated June 26, 2002, and June 19, 2002, written correspondence to LMCIT, which are attached hereto and incorporated into this Resolution; and WHEREAS, the City desires to settle the above-referenced matters as recommended by Mr. Iverson. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View that the City agrees to accept the settlement, as recommended by Mr. Iverson, involving the matters of Wallace Mortenson v. City of Mounds View, and City of Mounds View v. Leland Waqner. BE IT FURTHER RESOLVED that the City, in authorizing the settlement of the above- referenced matters pursuant to the recommendation of Mr. Iverson, also authorizes the Mayor and Clerk-Administrator to execute the Release provided by Mr. Iverson regarding these litigation matters, as well as any other documentation necessary to settle and resolve the above-referenced litigation matters. . . . . . Resolution 5854 Page 2 Passed and adopted this 23rd day of September, 2002. ATTEST: ~ " ~---- ._. C_~ Richard Sonterre, Mayor- SEAL ~ t,.., f)"~ i/ Ii "::::.:::/<'.-."-- '\ ' / \ r.i.I ';"/l.-- /' j ) /L.-C{,'~ Kathleen F. Miller, City Administrator Motion by: Quick Seconded by: Thomas Sonterre Aye Quick Aye Stigney Aye Marty Aye Thomas Aye