REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Delegation of Authority to Executive Director and Stadium Authority Counsel to Negotiate and Execute Allocation Agreement with Various 49ers Entities and Insurance Carriers Relating to Proceeds from Their Settlement with Howard Needles Tammen & Bergendoff
Report
COUNCIL PILLAR
Ensure Compliance with Measure J and Manage Levi's Stadium; Enhance Community Engagement and Transparency
BACKGROUND
In 2016, a class action lawsuit was filed by Plaintiffs Priscilla and Abdul Nevarez against the City, Stadium Authority and various 49ers entities (including the Management Company and the Stadium Company) alleging that the Stadium, its parking lots, and the surrounding public rights of way contained ADA accessibility defects. The case was settled in 2019 for approximately $38.5 million, which was comprised of approximately $25 million damages to the members of the class, plus approximately $13.5 million in attorney's fees paid to the plaintiffs' law firms. This settlement was funded in full by the 49ers and three insurance carriers (Indian Harbor Insurance Company, North American Capacity Insurance Company, and Starr Indemnity and Liability Company). In addition, they paid for the costs and attorney's fees associated with defending the City, Stadium Authority and 49ers defendants in the litigation. The City and Stadium Authority were not required to contribute financially to this settlement. This settlement figure does not include the costs of doing the remedial construction work at the stadium site and in the surrounding areas.
DISCUSSION
The 49ers and the three insurance companies thereafter pursued financial contribution from the architecture firm that designed the Stadium, Howard Needles Tammen & Bergendoff ("HNTB") on the grounds that defects in the design work led to the ADA violations and subsequent liability to the plaintiffs. One aspect of the handling of the case against HNTB is a determination of how any proc...
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