sr-111379-6uRLK:SKS:ms 11/05/79
City Council Mtgi 11/13/79
TO: City Council
November 5, 1979
Santa Monica, California
FROM: City Attorney ~~~ :~ 3 ~a~~
SUBJECT: Settlement of Claim Entitled Leslie Anne and
Dr. Lawrence Solomon, MBL 79-406, D L: 9/26 79
INTRODUCTION:
The above-entitled claim for property damage alone arises
out of an incident wherein a Santa Monica bus caused extensive
damage to a 1978 Datsun B210 owned by Leslie Anne Solomon. A claim
has been filed on behalf of Leslie P:nne Solomon and her father
Dr. Lawrence Solomon for property damage, and the following staff
report transmits a proposed settlement in the sum of $4,145.00.
BACKGROUND:
On September 26, 1979 at or about 8:47 a.m., Santa Monica
Municipal bus driver, Keith Lytle, was operating a Santa Monica bus
near the UCLA terminal. After discharging all of its passengers,
to keep from hitting a car and its two passengers, the bus driver
struck three parked cars on Hilgard Avenue, including the 1978 Datsun
owned by the claimants. The car was immediately towed to Walker
Brothers Auto for the purpose of itemizing the estimate of damages.
There is no dispute in the case that this vehicle was not.. substantially
damaged. Walker Brothers Auto have agreed to repair the vehicle
for the sum of $2,582.66 excluding certain open-ended items which
could not be observed without the front sheet metal being taken off.
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City Council Mtc 11/13/79
Miss Solomon is a student at UCLA and has been without
a car for over a month. The City Attorney's Office authorized a
car rental for a reasonable amount of time beginning on November 1,
1979.
Brown Brothers Adjusters on behalf of the City by Claims
Representative Joanne Harper, received fair market value quotes on the
1978:Datsun-B210,two-door sedan, with 16,605 miles, in excellent
condition. The vehicle also had an automatic transmission, AM/FM
stereo cassette and heater. The two quotes received on the vehicle
were $4,580 (blue book) and $4,550 (N. A.D.A. - National Auto Dealers'
Association). Thus the average combined actual cash value worth of
the car immediately prior to the accident was $x,565.00. Paul
Robbins from Brown Brothers further received a definite salvage
value of the vehicle in the sum $420.00 from Bell's Auto Wrecking
at 8777 San Fernando Road, Sun Valley, California.
LEGAL DISPUTE:
Mr. Robbins from Brown Brothers offered to the plaintiff
the cost of repairing the car. Claimants contend that this car
should not be repaired due to its substantial damage and the threat
of safety concerning metal fatigue. In fact, an employee of Walker's
Auto, where the car was originally towed and stored, stated to
Mr. Solomon and the claims adjuster that he would not repair this
car due to its substantial damage.
Further settlement negotiations have taken place be-
tween the City Attorney's Office and Dr. Lawrence Solomon. Dr.
Solomon was told that the City is only required to pay the cost
of the repair to the vehicle if it is less than the fair market
value immediately prior to the point of impact. Since an employee
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City Council Mt 11/13/79
of Walker's Auto Repair, the City's adjuster, and others have all
stated that it would not be advisable to repair this car, this
report recommends settlement to the Solomons for the sum of $4,145.00
which is the fair market value of the vehicle immediately prior
to the damage, less the salvage.
California Jury Instructions (BAJI; No. 14.20) explains
the law as follows:
"That sum to compensate plaintiff is equal
to the difference in the fair market value
of the property immediately before and immedi-
ately after the accident. ';
If the damages have been repaired, or are cap-
able of repair, so as to restore the fair market
value as it existed immediately before the acci-
dent, at a cost less than such difference in value,
then the measure of damages is the cost of such re-
pair rather than such difference in value." (Emphasis added).;
Dr. Solomon has brought forth testimony to indicate
that repairing the vehicle would not restore it to the fair market
value as it existed immediately before the accident and further
brought testimony to show that the car would be unsafe. Due to
the threat of safety to his daughter, Leslie Ann Solomon, the
City Attorney's Office recommends that this case be settled as
above discussed. The City Attorney's Office is in receipt of
two statements signed by a representative of La Jolla Auto Body
Company and Apex P.uto Body Shop.
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City Council Mt; 11/13/79
The City has authorized car rental to Leslie Anne
Solomon for a reasonable amount o£ time and further incurs
expenses for vehicle storage at Walker's Auto Body at a discount
negotiated by Mr, Robbins.
RE COT~l1~IENDAT I ON :
By this staff report, this Office recommends that the
City Council instruct the Director of Finance to draw a warrant
made payable to Leslie Anne Solomon in the sum of $4,145.OG and
to honor the cost of the rental car for a reasonable amount of
time and storage costs.
ALTERNATIVES:
The alternatives to this settlement would be to reject
the settlement and .allow the case to be tried in Municipal Court;
however, the City may eventually be held liable for the total
amount of claimants' claim .which includes sales tax, car registra-
tion, and a higher value placed upon the car.
PREPARED BY:
RICHARD L. KNICKERBOCKER, City Attorney
SHARI K. SILVER, Assistant City Attorney
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