1963-3019r'-„
RESOLUTION No. 3019
RESOLUTION AUTHORIZING SETTLEN~NT OF CLAIMS AGAII~T VILLAGE
OF RICHFIELD
WHEREAS, lawsuits have been instituted against the Village of Richfield9 iri
the District Court of Hennepin County, Minnesota9 claiming damages for flooding of
private residential premises on May 20, 1960, resulting from alleged carel®ssness
or negligence on the part of the Village in the maintenance of its storm suer
system and the diversion of waters into said system and thereafter upon such private
residential premises, which lawsuits are entitled as follows
Fordyce v, Village of Richfield
Knight v. Village of Richfield
Collins v. Village of Richfield
Thompson v, V3.llage of Richfield
Wood v.. Village of Richfield
a,rid
WHERF<AS, such suits against the Village make claims in the aggregate amount of
$359000, and
WHEREAS, on May 20, 1960, the Village had comprehensive general liability a.n~
surance provided by Mutual Service Casualty Insurance Company, and
WHEREAS, the applicable provision in the insurance policy with such compa*iy
obligated the insurer to pay on behalf of the insured all sums t~iich the insured shall
become legally obligated to pay as damages because of in3ury to or destruction of
property9 including the loss of use thereof, caused by accident, and
WHEREAS, on October 3, 1962, such insurer notified the Village that it is the
insurerBS claim that the phrase pcaused by accident" does not cover damages caused by
an "occurrer.c'" and that the insurer was unwilling to assume responsibility for
responding to any judgments which might be obtained in the aforementioned lawsuats9 aa~
WfiEREAS, such insurer has nevertheless undertaken to investigate and negotiate such
claims against the Village and has reached a settlement on such claims conditioned
upon a contribution by the Village for part of the settlement sums and
WHF~tEA5, there appears to be a genuinely doubtful issue of law as to the correct
meaning and interpretation of the aforementioned provision in the insurance policy
between the Village and such insurer, and
S~HEREAS, the failure to resolve such doubtful and disputed claim between the
insurer and the Village could result in the trial of such lawsuits against the Village
and in possible 3udgments against the Village substantially in excess of the amount
of settlement figures .agreed upon, and substantially in excess of the amount of
X2,000, and
WHEREAS, it is now proposed that the Village approve of the settlemexits which have
been negotiated by such insurer and contribute the sum of $32,000 towards such settle
merits, and
WHEREAS' it appears such settlements and such proposal. for a contribution toward
such settlements is a fairy reasonable' proper .and e~cpedient settlement of doubtful
and disputed claims against the Village;
NOW TI~EREFOREe BE IT RESOLVED by the Vi1.la.ge Council of the Village of Richfield'
Hennepin County' Minnesotae as follawss
1. The Village herewith approves settlement of the following claa.ms against
the Village in the following amountsb
Fordyce v. Village of Richfield .... $ ?64.71,
Knight v. Village of Richfield ...0 18.000.00
Collins v. Village of Richfield ... 0 28040.1.6
Thompson v. Village of Richfield .... 180DI~.00
Wood v. Village of Richfield .,.e 658.38
TOTAL ........o $5,166.65
2. The Village mayor, manager and finance director are hereby authorized and
directed to pay to "Mutual Service Casualty Insurance Company~- the sum of
$28000.00 in contribution towards such settlements.
3. Such payment sha11 be made fmm the Contingency Appropriation to the General.
Fund.
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Passed by the V3.llage Council of the Village of Richfield this 13th day of May' 1963.
ATTESTo
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E war . M ne Clerk
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