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Fighting (for) City Hall:

Fighting (for) City Hall:. Exploring, Insuring and Controlling Municipal Liability Risks. Fighting (for) City Hall Panel Members. MODERATOR : Ruth Moraski , President The Zigmund Company Maria McGinn , Underwriting Manager Euclid Managers, LLC Thomas P. McGinnis , Partner

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Fighting (for) City Hall:

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  1. Fighting (for) City Hall: Exploring, Insuring and Controlling Municipal Liability Risks Washington, D.C. ~ November 7-9, 2007

  2. Fighting (for) City HallPanel Members • MODERATOR: Ruth Moraski, President The Zigmund Company • Maria McGinn, Underwriting Manager Euclid Managers, LLC • Thomas P. McGinnis, Partner Thomas, Thomas & Hafer, LLP • Daniel Pliszka, Manager Risk Management Consulting, Bickmore Risk Services • Rick Savakinas, Claims Manager Scottsdale Insurance Company

  3. Overview • Immigration Law and the ramifications of enforcement or circumvention at the local level • Can municipal governments outsource their responsibility? • Sovereign immunity in cases of risk transfer

  4. Immigration Law Dilemma The rights of municipal governments in immigration enforcement

  5. City of Hazelton • Third Class under PA Law • City Settled by Illegal Immigrants from 2000 to 2006

  6. The Ordinances • Ordinance 2006-13 • Ordinance 2006-18 • Ordinance 2006-19

  7. The Complaint • Aug 15, 2006, Complaint Regarding Illegal Immigration Relief Act Ordinance filed • Trial Set for March 12, 2007

  8. The Issues • Supremacy Clause • Equal Protection • Due Process • Fair Housing Act • 42 U.S.C. 1981 • Plaintiff’s Privacy Rights • PA Landlord and Tenant Act

  9. The Issues cont. • Hazleton’s Municipal Powers • Hazleton’s Legitimate Police Power

  10. The Verdict • Verdict Rendered on July 26, 2007 • Plaintiffs Won • City Appealed

  11. Summary • Laws regarding Immigration are changing – Be Aware • Open communication of all parties is key – Ask ‘What If’ Questions

  12. Outsourcing Are you truly outsourcing your liability?

  13. Outsourcing Contractual Risk Transfer • Identifies exposures • Assigns loss control/prevention responsibilities • Improves efficiency

  14. Outsourcing How can risks be minimized? • Appropriate limits of liability • Indemnification provisions • Proper documentation

  15. Outsourcing and Sovereign Immunity Is there danger of waiving immunity by outsourcing?

  16. Kosciusko County Board of Commissioners • Indiana County Population 80,000 • County Jail

  17. Kosciusko County Board of Commissioners Summary of Case: • North Webster Police Department Arrested Reid for Drunk Driving on 3-15-03 • Reid was a Heavy Drinker and put on Watch at the County Jail

  18. Kosciusko County Board of Commissioners Summary of Case continued: • Defendant Nurse initially Prescribed Lithium for Reid • Reid Collapsed on 3-18-07; CPR was Administered • Reid Died

  19. The Allegations • Count I: Violation of 42 U.S.C. 1983 • Count II: Violation of 42 U.S.C. 1983 • Count III: Wrongful Death Under Indiana Law • Count IV: Medical Negligence Claim Under Indiana Law 

  20. The Issues • Violations of the 14th Amendment,1983 • County Sheriff, County Jail Physician, Nurse, various County Defendants Named • Judge Denied Qualified Immunity • Federal Actions Not Tossed; Fees and Costs Involved

  21. The Settlement • Case Settled for $925K • Travelers and SIC Split 50-50

  22. Summary • Experienced Claims Handling is Important • Be Aware of the Jurisdiction • Understand the Importance of Venues – Federal vs. State • Is Settlement an Option?

  23. Takeaways • Open communication of all parties is key. Ask those important 'what if' questions • Experienced claims handling is important • Is settlement an option? • Everything an entity does encompasses some risk • When in doubt, seek legal counsel

  24. AudienceQ&A

  25. Thank you to … • Maria McGinn • Thomas P. McGinnis • Ruth Moraski • Daniel Pliszka • Rick Savakinas

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