Laserfiche WebLink
<br />1 <br /> <br />Joint Development Authority <br /> TCAAP Redevelopment Project <br /> <br />DATE: July 7, 2014 <br /> <br />TO: Joint Development Authority Board of Commissioners <br /> <br />FROM: Michael T. Norton <br />JDA Counsel <br /> <br /> <br />SUBJECT: Waiver of JDA Tort Liability Limits <br /> <br />Budgeted Amount: Actual Amount: Funding Source: <br />n/a n/a n/a <br /> <br /> <br />Requested Action: Approve resolution authorizing execution of League of Minnesota Cities Insurance <br />Trust (LMCIT) Liability Coverage Waiver Form, by not waiving statutory tort limits. <br /> <br /> <br />Discussion: As part of its liability insurance coverage with LMCIT, the JDA is required to elect annually <br />whether to waive the statutory tort liability limits stated in Minn. Stat. § 466.04, currently capped at <br />$500,000 per individual and $ 1.5 million for all claims arising out of a single occurrence. This is a critical <br />decision, since not waiving the statutory limits results in the following scenarios as explained by LMCIT: <br /> <br />If the member does not waive the statutory tort limits, an individual claimant would be able to <br />recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all <br />claimants would be able to recover for a single occurrence to which the statutory tort limits <br />apply would be limited to $1,500,000. These statutory tort limits would apply regardless of <br />whether the city purchases the optional excess liability coverage. <br /> <br />If the member waives the statutory tort limits and does not purchase excess liability coverage, a <br />single claimant could potentially recover up to $1,500,000 for a single occurrence. The total all <br />claimants would be able to recover for a single occurrence to which the statutory tort limits <br />apply would also be limited to $1,500,000, regardless of the number of claimants. <br /> <br />If the member waives the statutory tort limits and purchases excess liability coverage, a single <br />claimant could potentially recover an amount up to the limit of the coverage purchased. The <br />total all claimants would be able to recover for a single occurrence to which the statutory tort <br />limits apply would also be limited to the amount of coverage purchased, regardless of the <br />number of claimants. <br /> <br /> <br /> <br />AGENDA ITEM 7B <br /> <br /> <br />MEMORANDUM <br />