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HomeMy WebLinkAboutResolution 4190-03-2013 A Resolution NO. 4190-3-2013 RATIFYING THE LAWSUIT ENTITLED THE CITY OF FORT WORTH AS SUBROGEE OF RYAN STEPP, MICHAEL JOHNSON, THOMAS LOFFLAND AND CHRISTOPHER GRAY v. DIANN S. FINCEL, PERSONAL REPRESENTATIVE, HEIR AND BENEFICIARY OF THE ESTATE OF BEVERLY L. KNUTSON; CAUSE NO. 141-264744-13 WHEREAS, on March 10, 2011, City of Fort Worth Police Officers Ryan Stepp, Michael Johnson, Thomas Loffland, and Christopher Gray were injured in a motor vehicle accident, when a vehicle driven by Beverly L. Knutson collided into the City vehicle operated by Officer Stepp and carrying Officers Johnson, Loffland, and Gray. WHEREAS, the collision caused by the negligent actions of Beverly L. Knutson necessitated the expenditure of City funds for salary benefits and reasonable and necessary medical treatment of Officers Stepp, Johnson, Loffland, and Gray, pursuant to the provisions of the Texas Labor Code. WHEREAS, Chapter 417 of the Texas Labor Code provides that if benefits are claimed by an injured employee, based on the liability of a third party, the City is subrogated to the rights of the injured employee and may enforce the liability of the third party in the name of the injured employee. WHEREAS, due to the two year statute of limitations to bring this lawsuit, on March 8, 2013, to preserve the City's ability to enforce its subrogation lien, suit was filed against Diann Fincel, personal representative, heir and beneficiary of the estate of Beverly L. Knutson. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1 . The decision by the City Attorney's Office to file suit against Diann Fincel, personal representative, heir and beneficiary of the estate of Beverly L. Knutson is hereby ratified. ORT WORT Resolution No. 4190-03-2013 2. The City is authorized and directed to take all necessary legal action against Diann S. Fincel, personal representative of the estate of Beverly L. Knutson to recoup indemnity (wages paid) and medical costs in the amount of$32,644.89. Adopted this 19`h day of March, 2013. Ax AY 0- ATTEST: Af 0 1:1 0 By A V .('011, 0000 ——————————— 4Y Mary J. Kayse C* y Scretafya q IRTWOW qW City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION. Approved on 3/19/2013 - Resolution No. 4190-03-2013 l: /.�.✓ ✓O/Oln nN/2 � fie% ✓//'..�✓ ✓�Yd/N r/ f.Ol/2G".',f L'TP-1 t f.......,-✓fdill✓(RJ✓Yf.. Y02 p)Y '.. f 1Dl1Artl?!0/1d✓AM DATE: Tuesday, March 19, 2013 REFERENCE NO.: G-17835 LOG NAME: 12FINCEL LAWSUIT SUBJECT: Adopt Resolution Ratifying the Lawsuit Entitled the City of Fort Worth as Subrogee of Ryan Stepp, Michael Johnson, Thomas Loffland and Christopher Gray v. Diann S. Fincel, Personal Representative, Heir and Beneficiary of the Estate of Beverly L. Knutson, Cause No. 141-264744-13 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution ratifying the lawsuit against Diann S. Fincel, Personal Representative, Heir and Beneficiary of the Estate of Beverly L. Knutson, Cause No. 141-264744-13, filed on March 8, 2013, regarding a collision with a City police vehicle. DISCUSSION: On March 10, 2011, four City of Fort Worth Police Officers, Ryan Stepp, Michael Johnson, Thomas Loffland, and Christopher Gray were travelling northbound in a police vehicle in the right lane of the 1500 block of South University Drive. Beverly L. Knutson was operating a vehicle travelling southbound in the 1400 block of South University Drive and executed a turn onto West Rosedale colliding with the Police vehicle. As a result of the impact, all four Police Officers suffered bodily injuries. Since the accident, the Department of Risk Management has attempted to enforce the City's lien against the negligent driver's insurance company. Until recently, they believed the case would be resolved without the necessity of a lawsuit. However with the two-year filing deadline approaching, in order to preserve the City's lien, Risk Management asked the City Attorney's Office to file suit. The normal statute of limitations exemption provided the City as a political subdivision does not apply in cases brought by a municipality, as a subrogee, to recover workers' compensation benefits paid to its employees as a result of the negligence of a tortfeasor. Initially, the City prepared to file suit against the actual tortfeasor, Beverly L. Knutson, but discovered she passed away on October 24, 2012 due to complications from an unrelated illness. Consequently, suit was filed against the personal representative of her estate, Diann Fincel. Because of the impending deadline to file suit imposed by the two-year state statute of limitations and the City Council meeting schedule, the City Attorney's Office and the City Manager's Office were not able to seek prior City Council authorization. Texas workers' compensation laws require the City to provide medical treatment and salary benefits to employees injured in the line of duty. Approval to file this lawsuit would allow the City to seek recovery of medical costs in the amount of$22,996.89, and indemnity (wages paid) in the amount of $9,648.00 for a total of$32,644.89. An estimated $2,500.00 is expected to be spent pursuing this lawsuit. Logname: 12FINCEL LAWSUIT Page 1 of 2 FISCAL INFORMATION / CERTIFICATION: The Financial Management Systems Director certifies that funds are available in the current operating budget, as appropriated, of the Risk Management Fund. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers FE71 534060 0137120 $2,500.00 CERTIFICATIONS: Submitted for City Manager's Office by: Charles Daniels (7504) Originating Department Head: Sarah Fullenwider (8006) Gerald Pruitt (7616) Additional Information Contact: Benjamin Sampract (7617) Logname: 12FINCEL LAWSUIT Page 2 oft