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HomeMy WebLinkAboutReports - 2023.03.23 - 38095AMENDMENT III.Civil Claims Settlement Authority D.Settlement amounts of $1.0 million and greater Recommendation of the settlement amount by the Claims Review Committee and subsequent final approval of the settlement and claim for payment to the full Board of Commission to the Finance Committee of the Board of Commissioners and/or the full Board of Commissioners upon discretion of the Chair of the Board. AGENDA ITEM: Revised Liability Claims and Workers Compensation Policy and Procedures DEPARTMENT: Risk Management MEETING: Board of Commissioners DATE: Thursday, March 23, 2023 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-2697 Motion to adopt the attached revised Liability Claims and Workers Compensation Policy and Procedures, which shall supersede all other action previously passed by the Board of Commissioners. ITEM CATEGORY SPONSORED BY Policy Gwen Markham INTRODUCTION AND BACKGROUND In 1985, by Miscellaneous Resolution #85369, this Board of Commissioners acknowledged that the County must establish self-retained limits for primary insurance coverage for, inter alia, Comprehensive General Liability for which the County would need, inter alia, risk assessment services, legal services and claim settlement services. MR #85369 further established a Liability Insurance Fund to which all self-insured settlements, expenses, costs and reserves should be charged; and In 1986, by Miscellaneous Resolution #86276, this Board of Commissioners established a Claims Review Committee and Claims Procedure to facilitate coordinated and consistent claims management; and MR #88205, MR #91016, MR #09033 and MR #17192 revised the Liability Claims Policy and Procedures; and Corporation Counsel and members of the Claims Review Committee have reviewed and re- evaluated the Liability Claims Policy and Procedures and recommends the Policy be further modified as follows: 1. To modify the current settlement authority ranges to improve claim settlement efficiency. 2. To clarify the process for law firm approval and matter assignment. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Diana McBroom, Risk Manager-APP ITEM REVIEW TRACKING Gwen Markham, Board of Commissioners Created - AGENDA DEADLINE: 03/23/2023 9:30 AM ATTACHMENTS 1. Revised Liability Claims and Workers Compensation Policy and Procedures COMMITTEE TRACKING 2023-03-15 Finance - Recommend to Board 2023-03-23 Full Board - Adopt, as Amended Motioned by: Commissioner Gwen Markham Seconded by: Commissioner Christine Long Yes: David Woodward, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, Yolanda Smith Charles, Charles Cavell, Brendan Johnson (15) No: None (0) Abstain: None (0) Absent: William Miller III, Michael Spisz, Gary McGillivray, Ajay Raman (4) Passed LIABILITY CLAIMS AND WORKERS COMPENSATION POLICY AND PROCEDURES A primary requisite for successful claims management is ensuring a uniform methodology for the handling of claims under the direct supervision of professionals employed by an organization. The management of claims against Oakland County, under the purview of Corporation Counsel and Risk Management, shall embrace a "firm but fair" posture in the settlement of those claims and payment of fees. If a case is to be defended, the County shall maintain an aggressive defense philosophy. Conversely, should a case be deemed positioned for a settlement in the County’s best interest, a prompt and equitable settlement shall be attempted. I. Claims Review Committee a. The Claims Review Committee shall be comprised of five (5) members: two (2) members appointed by the Chairman of the Board of Commissioners, two (2) members appointed by the County Executive, and the Risk Manager. b. The Claims Review Committee shall be consulted for claims settlement authority for all civil claims, which shall include the settlement or redemption of workers’ compensation claims, as provided in this Policy. c. The Claims Review Committee shall make recommendations to the Chair of the Board of Commissioners and the County Executive, who shall have joint authority to act upon such recommendation, for the selection of replacement and additional law firms (“County Approved Firms”) under this Policy. In the event the Chair of the Board of Commission and County Executive cannot agree, the Claims Review Committee majority vote shall control. II. Claims Review Committee Jurisdiction The Claims Review Committee jurisdiction shall extend to all matters in the nature of a claim or controversy regardless of litigation status, including but not limited to, claims for personal injury; property damage; all employment matters related to discrimination, severance, termination or other; all claims alleging violations of civil rights; or any other claim or grievance in which action or remuneration is contemplated in exchange for a waiver of rights. III. Civil Claims Settlement Authority a. Settlement amounts up to and including $40,000 Approval of the settlement amount and claim for payment by the Corporation Counsel (for any matter) or the Risk Manager (for non-litigated claims only). b. Settlement amounts greater than $40,000, up to and including $150,000 Approval of the settlement amount and claim for payment by the Claims Review Committee. c. Settlement amounts greater than $150,000, up to $1.0 million Recommendation of the settlement amount by the Claims Review Committee and subsequent approval of the settlement amount and claim for payment to the Finance Committee of the Board of Commissioners. d. Settlement amounts of $1.0 million and greater Recommendation of the settlement amount by the Claims Review Committee and subsequent final approval of the settlement and claim for payment to the Full Board of Commission. IV. Assignment of Civil Counsel Assignment of legal matters shall be to County Approved Firms by Corporation Counsel with the advice of the Chair of the Claims Review Committee, based upon the expertise of these firms in various unique liability exposure areas, with notice to the Claims Review Committee. Assignment of counsel where the County is insured and there is a self-insured retention (SIR) shall be done in accordance with the applicable insurance policy. In the event the Department of Corporation Counsel determines that it has a conflict of interest, such matters shall be referred for handling to one of the County Approved Firms. V. Requests for Counsel Other Than the Claims' Committee Approved Firms Any elected official, appointee, employee or any other person or persons coming under the protection of the "Employee Indemnification" (Resolutions #85339, 86124) who requests representation by an attorney/law firm other than one which is a “County Approved Firm" shall first present their request to the Claims Review Committee, and shall provide the proposed fees, letter of engagement, and/or hourly rate to be charged by such attorney or firm. The Claims Review Committee shall make all decisions regarding such requests, which shall be final. The Claims Review Committee may grant this request when circumstances indicate that the interests of justice are best served due to special or exceptional circumstances.