Plaintiff Attorney Quote: ‘Instead…the County engages in months of litigation and racks up legal fees. And then they settled. Who’s the Einstein that settled on that strategy?'

ABSTRACT:  In the context of the civil lawsuits filed against the City of Carmel-by-the-Sea, namely STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082) and JOHN HANSON v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100 (Case No. M128436), CSAC Excess Insurance Authority (EIA), “a member directed insurance risk sharing pool,” “has developed effective risk management solutions to help California public entities proactively control losses and prepare for different exposures.” The City of Carmel-by-the-Sea is one of sixty-five Public Entities Members covered under CSAC-EIA’s General Liability l Program. “The General Liability I Program (GLI) provides coverage for claims from third parties alleging damages due to negligence on the part of the member arising out of: Personal injury, Property damage, Public officials errors and omissions, Employment practices liability and Automobile liability.” Moreover, in a Power Point Presentation entitled “To Settle or To Defend: An Innovative perspective on Claim Resolution,” Jack Blyskal, CSAC-EIA, Heather Fregeau CSAC-EIA, Carl Fessenden and Porter Scott, a slide features a Plaintiff Attorney Quote: “Instead…the County engages in months of litigation and racks up legal fees. And then they settled. Who’s the Einstein that settled on that strategy?” Michael Thomas, attorney. Included in the Power Point Presentation are sections on “Elements which indicate settlement,” including Clear liability, or Low share of liability (settle out), Policy limits case, or Minimal damages, Possibility of plaintiff attorney fees, Minimal number of defendants, Poor defense witnesses, Heavily emotional issues (damages, facts, etc.) and Jurisdiction issues and “Elements which indicate defense,” including Low liability (Can’t settle out), Multiple defendants, Large damages (but not policy limits), Unreasonably large demand, Plaintiff attorney “churning,” Favorable jurisdictions and Political considerations.  Interestingly, Heather Freqeau, CSAC-EIA, states “Focus your efforts on cases where you can make a difference, not fighting clear losers.”   And in the context of CSAC-EIA, MARY SCHLEY reported in the news article entitled “City moves McInchak case to federal court, The Carmel Pine Cone, July 11, 2014, as follows:  “Mayor Jason Burnett said the decision to move the case was made by lawyers for the government agency — the California State Association of Counties Excess Insurance Authority — defending the city, and not by the city council.” And ““CSAC retains the lawyer to represent the city, and he makes the determination how to handle the case,” Freeman said. After the city paid a deductible, CSAC would also pay any damages awarded in the case, except for punitive damages, Freeman added.” However, according to CSAC EXCESS INSURANCE AUTHORITY UNDERWRITING AND CLAIMS ADMINISTRATION STANDARDS,  Amended March 6, 2009, “Members of the General Liability I or General Liability II Programs, except those members of the Primary General Liability Program whose responsibilities are outlined in Section V below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.

1. The Member shall use only qualified personnel to administer its liability claims.
2. Qualified defense counsel experienced in tort liability law shall handle litigated claims. Members are encouraged to utilize defense counsel experienced in the subject at issue in the litigation.
3. The Member shall use the Liability Claims Administration Guidelines (Addendum B) and shall advise its claims administrator that these guidelines are utilized in the Authority's liability claims audits.”

REFERENCE:
City moves McInchak case to federal court, By MARY SCHLEY, The Carmel Pine Cone, July 11, 2014, 1A & 23A