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CI'O OF SAN BERNARDOO - REQUEOr FOR COUNCIL ACC)oN
From:
RALPH H. PRINCE
Subject: Senate Bill No. 969
Punitive Damages
Dept: Ci ty Attorney
Date: June 13, 1985
Synopsis of Previous Council action:
On April 1, 1985, Mayor and Common Council considered SB 75 and
related bills before the California Legislature to reform the
"Deep Pocket" liability laws, and adopted a motion supporting
the proposed changes in tort liability reform as it pertains to
the "Deep Pocket" theory.
SB 969 is one of the related bills in the California Legislature
relating to punitive damages.
URGENCY SB 969 was approved by the State Senate and is
pending before the State Assembly.
Recommended motion:
Adopt resolution.
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Contact person:
Raloh H. Prince
Phone:
5255
Supporting data attached: yes
Ward:
FUNDING REQUIREMENTS: Amount:
Source:
Finance:
Council Notes:
75-0262
Agenda Item No.
S,$
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CIO OF SAN BERNARDOO - REQUIOT FOR COUNCIL AcQON
STAFF REPORT
On April 1, 1985, the Mayor and Common Council considered Senate
Bill #75 and all related bills before the California Legislature
to reform the "Deep Pocket" liability laws. A Motion was adopted
directing the City Administrator, through the Director of Emergency
Services and Risk Management, to advise the League of California
Cities, California Public Agencies, Risk Managers Association, and
the California Council of Self-Insured Public Agencies that the
legislative body strongly supports the proposed changes in tort
liability reform as it pertains to "Deep Pocket" liability theory.
Senate Bill No. 969 is a related bill concerning the "Deep Pocket"
liability for a claim for punitive damages. Existing law
authorizes a local public entity to insure against the expense
of defending a claim for punitive damages, but is not authorized
to insure for payment of that part of a judgment that is for
punitive damages. The Senate Bill would authorize a public
entity to insure, contract or provide against liability for a
claim for punitive damages.
The City, its officers and employees are self-insured against
liability for damages in amounts below $250,000. Government
Code Section 990 currently permits a local public entity to
insure, contract or provide against the expense of defending
a claim for punitive damages, but does not authorize a local
public entity to pay for or to insure, contract, or provide
for payment for such part of a claim or judgment against an
employee of the local public entity as is for punitive
or exemplary damages. Therefore, the personal exposure
of a city officer and employee to liability for damages
of a punitive nature under Government Code Section 990 is '"
great and such officer or employee should be adequately
covered when he acts on behalf of the City and an adverse
judgment is rendered against the City.
RHP:ca
cc: City Administrator
Chief of Police
Lt. Bashaw
Director of Emergency Services
and Risk Management
75-0264
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO SUPPORTING SENATE BILL NO. 969 RELATING TO PUBLIC
LIABILITY FOR PUNITIVE DAMAGES.
WHEREAS, plaintiffs in lawsuits instituted against public
officials and employees are increasingly seeking punitive
damages knowing that because such officers and employees are
personally liable, there is greater pressure towards settlement
of the litigation even where such claims are not well founded; and
WHEREAS, existing law, particularly Government Code Section
990, authorizes a local public entity to insure against its
liability and its employees' liability, and such entity is
authorized to ensure against the expense of defending a claim
against it or its employees, including a claim for punitive
damages; and
WHEREAS, such public entity is not authorized to insure
for payment of part of a judgment that is for punitive
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damages; and
WHEREAS, Senate Bill No. 969 would authorize a local public
entity to insure, contract or provide against liability for a
claim, including a claim for punitive damages; and
WHEREAS, Senate Bill No. 969 has been approved by the State
Senate and is currently pending before the State Assembly; and
WHEREAS, it is believed that municipalities should have
the authority to either pay for or insure their employees against
punitive damages,
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
!
II SAN BERNARDINO DO HEREBY RESOLVE AS FOLLOWS:
! SECTION 1. The legislative body of the City of San
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Bernardino supports and endorses the provisions of Senate Bill
No. 969 and urges the State Assembly to approve and enact such
legislation, and further urges the Governor of the State of
California to approve Senate Bill No. 969 which would authorize
a local public entity to insure, contract or provide against
I liability for a claim, including a claim for punitive damages.
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lis directed to forward a copy of this resolution to the
IGovernor of the State of California and Assemblymen Leonard
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land Eaves of the State Assembly, and to forward additional
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lcopies to League of California Cities, the Council of Self-
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iInsured Public Agencies, and the California Public Agencies
,
,Risk Management Managers' Association.
SECTION 2.
The City Clerk of the City of San Bernardino
I I HEREBY CERTIFY that the foregoing resolution was duly
ladopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held
'"
on the
day of
, 1985, by the
following vote, to wit:
AYES:
Council Members
NAYS:
ABSENT:
i City Clerk
,
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The foregoing resolution is hereby approved this day
of
, 1985.
Mayor of the City of San Bernardino
Approved as to form:
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Ci ty A orney
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