REPORT TO COUNCIL
SUBJECT
Title
Action on the Settlement in the Case of Lo v. City of Santa Clara, et al. and Approval of the Related Budget Amendment
Report
BACKGROUND
Lo v. City of Santa Clara et al., arises from an auto vs. train accident which occurred in January 2017, on the railroad crossing at the Lafayette and Agnew intersection. Mrs. Bridget Lo was tragically killed in that accident. Her surviving family members filed suit against the railroad and the City, alleging that the design, maintenance and operation of the railroad crossing as well as the adjacent intersection were dangerous.
DISCUSSION
This settlement was brought before Council in closed session on September 17, 2019, at which time Council approved the settlement. No report out of closed session was completed at that time because the settlement was not yet final, as required by California Government Code ?54957.1(a)(3). The settlement has now been finalized and a copy of the Settlement Agreement is on file with the City Clerk's Office.
The total settlement with the Plaintiffs (Mrs. Lo's husband and two children) is $3.5 million. Of this total sum, the City's net liability is $2,808,807.71 which reflects the amount remaining on the City's insurance deductible. The City will pay the full $3.5 million to the plaintiffs and the City's insurance carrier will refund to the City the sum of $691,192.29 which represents the portion of the total settlement amount that exceeds the city's insurance deductible. . The settlement forecloses any possible further liability for the City based upon this incident.
City Charter Section 1305 requires that appropriation for non-budgeted expenditures, such as the payment of a verdict or settlement, be approved by a five-vote majority of the Council. The Reserve for Future Claims in the Special Liability Insurance Fund is a reserve fund established to cover jury verdicts, settlements, and payments of the City's insurance deductible in claims matters. St...
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