sr-041481-6tSSS:YB:PBP:DD
Council Meeting of April 14, 1981 Santa L•4onica, California
CONFIDENTIAL STAFF REPORT
~P~ 1 4 999
TO: MAYOR AND CITY COUiQCIL
FROM: CITY ATTORLQEY
SUBJEC^1: REQUEST FOR APPROVAL OF SETTLEL•4ENT
HICK STILdY V. CITY OF SANTA b4OIQICA
CASE NO. C 55608
INTRODUCTIOPd
Approval of $3,400 is requested in settlement of
the above-referenced lawsuit,
FACTS
This lawsuit arises out of a collision which occurred
on August 20, 1979, when a Santa Monica City trash truck caught
on fire, Fortunately, the City driver was able to exit his
truck without injury; however, the City truck, while still in
motion, crashed into two parked vehicles.
One car was owned by Ernesta M, Haley, Mrs. Haley's
claim was settled on November 29, 1979, for $2,200,
The second vehicle was a 1977 four-wheel drive Ford
truck owned by plaintiff Pdick Stiny, The damage to Mr, Stiny's
truck was $3,364.51. Because Mr, Stiny was a plumber and used
his truck for his work, he also claimed $1,300 in loss of use
and $530.00 loss of earnings.
T.T DRTT.T TV
A few days prior to this incident, the City's refuse
truck had been repaired by White Motor Truck Company. The City
contacted Boris Auksman, Ph.D., Consulting Engineer, who
concluded that the fire was caused by a diesel fuel leak. On
May 23, 1980, the City filed a Cross-Complaint for Indemnity
against White P4otor Truck Company to recover the monies paid
as a result of this incident. On October 14, 1980, White Motor
Company filed bankruptcy; said filing automatically stays all
pending actions. The City will file an unsecured creditor°s
lien against the bankrupt corporation in an effart to recover
the amount of the two settlements,
DAMAGES
P1ai.ntiff's damages to his truck, including loss of
use and loss of earnings, total $5,194,51,
SETTLEMENT NEGOTIATIONS
This case had been
March 26, 1981. Plaintiff's
attempt to settle this matte
expenses, the City submitted
subject to Council approval.
his demand of $3,400.00.
scheduled for arbitration on
demand was $4,450.00, In an
without incurring arbitration
a statutory offer of $3,239,00
Plaintiff has countered with
-2-
RECOI~IIdENDATION
It is our recommendation that the Council authorize
payment of $3,400 rather than proceed to arbitration where it is
likely plaintiff would recover his entire property damage,
loss of earning, and loss of use for a total of $5,194,51,
Prepared By:
STEPIIEId S. STARK
Acting. City Attorney
YVONIIE BIPISTOCK,
Deputy City Attorney
PAULA B. PALMOR,
Deputy City Attorney
-3-