HomeMy WebLinkAboutAgenda Report - January 19, 1983 (41)N.
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:9TY COUNCIL MEETING
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JANUARY 19, 1983
CITY OF WHITTIER
`�. NOTICE OF
PENDENCY OF
;
CLASS, ACTION
City Clerk Reimche presented a
Notice of Pendancy of Class
Action, City of Whittier vs. State Compensation Insurance
Fund and cross complaint State
Compensation Insurance Fund
vs. City of Whittier, et al re
Workers' compensation liability.
.
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SUPERIOR COURT OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF WHITTIE", a municipal )
corporation, et al., on behalf of )
themselves and all other public )
entities in the State of )
California similarly situated, )
Plaintiffs, )
VS. )
STATE COMPENSATION INSURANCE )
FUND and DOES I through X, )
inclusive, )
Defendants. )
STATE COMPENSATION INSURANCE )
FUND, )
:'.: oss-Complainant, )
VS. )
CITY OF WHITTIER, etc., at al., )
Cross -Defendants. )
TO MEMBERS OF THE PLAINTIFF CLASS:
RECEI `��1.�
`4 JAN
CciT Y C�F�
�YO�: Lft
CIVIL NO. CA 000590
NOTICE OF PENDENCY
OF CL:,SS ACTION
YOU ARE HEREBY NOTIFIED that the following public
entities have brought an action in the Superior Court of
California for the. County of Los Angeles against defendant
State Compensation Insurance Fund ("SCIF"): Cities of
Whittier, Marysville, San Rafael, Escondido, Grover City,
Inglewood, Garden Grove, Redlands, Yuba City and Huntington
Beach ("plaintlffs").
Plaintiffs brought this action on their own behalf
and on behalf of a class identified rs all cities and counties
in the State of California which and now or have ever been
insured by SLIF for workers' compensation liability and which
1.
employ or have employed policemen, firemen and other persons
("safety employees") entitled to compensation in the nature
of one year's 'fvll salary continuation benefits under Labor
Code Section 48SO ("Section 4&50 benefits"), whether or not
the occasion has arisen to pay such benefits (the "class members").
In addition, a subclass is identified consisting
of all class members which within the four years preceding
January 10, 1980 have made demand on SCIF for reimbursement
of Section 4850 benefits paid by class members to their
safety employees within the four years preceding such demand,
where such benefits were paid for safety employee disabi-
lities which arose while each such class member was insured
by SCIF (the "subclass members").
Plaintiffs allege causes of action for declaratory
relief, breach of contract, bad faith and breach of statutory
and fiduciary duties, based upon SCIF's refusal to reimburse
plaintiffs for Section 4850 benefits they paid to their
disabled safety employees. Plaintiffs seek to recover
compensatory damages for all subclass members against SCIF
for its failure to reimburse cities and counties insured by
SCIF for benefits paid to their safety employees pursuant to
Labor Code Section 4850. If the action is successful, the
amount of compensatory damages recoverable by each subclass
member will be based upon the amount of Section 4850 salary
continuation benefits paid by each such member within the
designated time period. Plaintiffs also seek to recover
punitive damages (for members of the subclass), costs of
suit and attorneys' fees from SCIF. SCIF denies liability
for these Section 4850 benefits, contending its insurance
policies do not cover such benefits. SCIF has asserted
affirmative defenses for failure to state a cause of action,
lack of subject matter jurisdiction, exclusive jurisdiction
of the Workers' Compensation Appeals 3oard, no liability, no
basis for declaratory relief, no mutuality of consent, no
consideration, lack of intent by plaintiffs, lack of intent
by SCIF, laches, statute of limitations, wiiver and an
affirmative defense based on Labor Code 55500.5. Further,
SCIF has filed a cross-complaint seeking to recover for unjust
enrichment from class members or to ser off against any judgment
entered on the complaint, the added premiums which it allegedly
would have charged had Section 4850 be.netits been reimbursed;
and to recover attorneys' fees and costs if it is successful
in defending the complaint or on the cross-complaint.
on Saptember 30, 1982 the Court ordered that this
action be certified as a class action, that plaintiffs be
certified as class and subclass representatives and that
2.
this Notice of Pendency of Class Action be sent to all
potential class and subclass members.
THE COURT HAS NOT AS YET EXPRESSED ANY OPINION AS
TO THE MERITS OF EITHER THE CLAIMS OR THE DEFENSES ASSERTED
IN THE ACTION.
The class and subclass are represented by the law
firms of Kegel, Tobin & Hamrick, David Lister and Donna
Vose; and Lawler, Felix & Hall, Robert P. Mallory and
Randolph C. Visser, whose addresses are indicated below.
If you wish to be included in the class and/or
subclass and be represented by the existing class counsel,
you need take no action in response to this notice. The
costs of .suit and fees to class counsel, if any, will be
paid solely from the recovery, if any, obtained on behalf
of the class and/or subc:.ass.
If instead you wish to enter an appearance in this
action through counsel of your own choosing, you may do so.
In such event you should give written notice of your appearance
in the action to the Court and to counsel for plaintiffs and
colansel for defendant on or before February 28, 1983,
addressed as follows:
Deputy Clerk, Los Angeles Superior Court
Department 59
boom 519
111 North Bill Street
Los Angeles, California 90012
Lawler, Felix & Hall
Robert P. Nallor•1
Randolph C. Visser
700 South Flower Street
Suite 3100
Los Angeles, California 90017
(213/629-9300)
Regal, Tobin & Hamrick
David E. Lister
Donna Vose
3325 Wilshire Boulevard
Los Angeles, California 90010
(213/380-3880)
Attorneys for Plaintiffs and the Plaintiff Class
3.
State Compensation Insurance Fund
George S. Bjornsen
1275 Market Street
San Francisco, California 94103
(415/565-1235)
Attorneys for Defendant
If you participate in this action, either through
counsel for the class and subclass or through counsel of
your own choosing, yor. will participate in the benefits of
any settlement or judgmant obtained for the class and/or
subclass. Conversely, any judgment denying recovery to the
class and/or subclass will bind you and you will not there-
after be entitled to sue SCIF for any claims stated in the
complaint.
The Court will exclude you from the class and
subclass if you request exclusion, in writing, on or before
February 28, 1983. If you desire to be excluded from the
class and subclass, mail or deliver your request to the
Court by February 28, 1983 at the address set forth above.
Persons requesting exclusion from the class and subclass
will not be entitled to share in the benefits of any settle-
ment or judgment in favor of the class and/or subclass, nor
will they be bound by any judgment denying recovery to the
class and/or subclass.
If you do not specifically request exclusion from
the class and subclass, and you do not enter an appearance
by counsel of your own choosing, you will be included in the
class and/or subclass and the -above-named class counsel will
represent your interests in the action. You will be asked
at some future date to provide information which will enable
the Court to determine whether you qualify for such member-
ship.
The nature of this action is only sumarized in
this notice. For a more detailed statement of the matters
involved you may inspect the Court file during regular
business hours at the Court's address, set forth above, or
contact class counsel whose addresses and telephone numbers
are also set forth above. DO NOT CALL THE COURT.
DATED: December 30, 1982.
NORMAN R. DOWDS
Judc), Superior Court
County of Los Angeles
4.
of California,