CC_Minutes_2012_0312 - Laserfiche WebLink

Home

we have a duty to ensure those funds are paid out only when legally owed. To do otherwise would amount to making a gift of those public funds to a private individual. • Second, the funds LMCIT uses to pay claims really belong jointly to all LMCIT member cities. LMCIT is simply holding the money in trust for these members. Each member city has the right to expect that LMCIT will pay those funds out only if the money is in fact legally owed. • Finally, we have to be concerned about setting a precedent. If LMCIT were to make a payment on one such claim to one person in one city, LMCIT would have to be prepared to do so for every claimant in every member city that faces a similar situation. What if we disagree with the LMCIT adjuster's determination? There's often a good deal of judgment involved in evaluating liability,and it's certainly possible that city officials may disagree or have questions about the LMCIT adjuster's evaluation and conclusions. Those disagreements can be in either direction; it could be a case where you think a claim LMCIT has denied should be paid, or a case where you think a claim LMCIT plans to pay should be denied. The first thing to do is to talk with the adjuster. If there are facts or information the adjuster isn't aware of,or if there are issues that s/he hasn't investigated which you feel should be, give the adjuster a call. It's not the adjuster's job to do everything possible to either deny or to pay a claim; the adjuster's job is to try to get it right. In some cases, you may still have concerns or questions after talking with the adjuster. If so, please call Doug Gronli, LMCIT Claims Manager, at(651)281-1279, or Pete Tritz at(651)281- 1265. We'll be glad to review the claim to make sure we're comfortable with the position the adjuster has taken on LMCIT's behalf,or to modify that position if it's appropriate. If LMCIT has denied liability on a claim, and the city believes it should be paid, can the city pay the claim itself, using the city's own funds? City officials may feel it's appropriate to pay a claim denied by LMCIT out of city funds. They may feel it is the city's responsibility to take care of its citizens,regardless of legal liability, or they may simply and understandably feel sympathy for the claimant's situation. Obviously,the city council is responsible for the city's funds and has the power to decide when and how those funds should be spent. But while it's clearly the council's call,the city also needs to think about some of the same issues that LMCIT has to consider. One important question, of course, is whether this is an appropriate and authorized use of city funds. We'd suggest cities discuss this with the city attorney before making a payment in these kinds of circumstances. Another important issue is the precedent the city would set by making a voluntary payment in a particular case. Once the city has made a payment in one circumstance, it would be very difficult not to do so again for the next citizen who's in a similar circumstance. Depending on the size and number of such future claims,the total cost to the city could be much greater than the amount in question on this one claim. 3