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HomeMy WebLinkAboutS08-City Attorney 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. " ~~~ 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,$ ../';' 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 0 1 2 3 4 5 6 7 8 9 10 11 \2 13 \4 15 16 \7 \8 19 20 21 22 23 24 25 26 27 28 Ii I I o o o 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 " 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 i 0 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o 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. I ! , lis directed to forward a copy of this resolution to the IGovernor of the State of California and Assemblymen Leonard I land Eaves of the State Assembly, and to forward additional I , lcopies to League of California Cities, the Council of Self- I 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 , 1/ / / / / / / / / / I / / / / / / / / / / i i I / / / / / / / / / / I I , i 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o o The foregoing resolution is hereby approved this day of , 1985. Mayor of the City of San Bernardino Approved as to form: /~~~9 Ci ty A orney 3 ",