HomeMy WebLinkAboutAgenda Report - May 1, 1996 (65)AGENDA TITLE: Submission of An Acknowledgment of Receipt of a Notice of Pendency of Class
Action.
MEETING DATE: Wednesday June 5, 1996
PREPARED BY: Kirk J. Evans, Assistant to the City Manager
RECOMMENDED ACTION: That City Council approve submission of an ACKNOWLEDGMENT OF
RECEIPT of a NOTICE OF PENDENCY OF CLASS ACTION to the law
firms of Lister, Guckenberger, & Martin and McDermott, Will & Emery.
BACKGROUND INFORMATION: A class action was filed March 21, 1996 in Los Angeles Superior
Court entitled "City of Torrence, et al vs. State Compensation
Insurance Fund". The firms representing the plaintiff entities have
also requested the City of Lodi's participation in this action. The City
of Lodi has participated in a similar action against the State
Compensation Insurance Fund in the past and recovered
$39,502.02. Each member of the proposed class is being asked to contribute $500, on a voluntary basis,
to a "cost fund" to cover out-of-pocket costs of litigation e.g. filing fees, depositions, travel expenses,
expert fees, etc. Staff recommends that the City of Lodi return the ACKNOWLEDGMENT OF RECEIPT,
participate in this action, and contribute $500 to the "cost fund".
FUNDING: Will use current budgeted funds
Krk J. Evans
Assistant to the City Manager
APPROVED: -
H. Di on Flynn — Ci y Manager
:.rY:'.rIORQf t. +.'r'WJSQ
__Jh :i111'ClS'y. CA -,M67-3203
ii 04771411v
>7iI—V 71 4i'.ZO
?c+�tnn
'._ti1C VyC
4'[ia�tt„
;.]uw�lUlt �2aC4
`Jew'CG1k
Tallinn (Estomat
Vibuus iLithuania)
Washington, DC-
Uarxiated (independent) O*es
1�1cD..1 mo. , " '! u.L & EiY.IG. . '. � Ott
vo?-.C3 07 2EIIWZHCf of CLa98 ACTIQi�
(Rule Los Angeles superior Court)
To the presiding officer of the County, City, school District or
other Public Entity to which this xatice is Directed;
YQo ARE 8g nY NCT171ZD that a class action was filed on
March 21, 1996 in the Los Angeles Superior Court, entitled My
of TOLS'YAM st 11, a; SA tO C222 U'241: Al 12-22—rsm-Te Bund," Case
Wo. 3C 146645 (the °'Action"). You are being notified of this
Action because your public entity may be a member of the proposed
class. Please forward this notice promptly to the senior person
responsible for administering your workers' compensation program.
If approved by the Court, the Action will proceed on behalf
of a "class" of plaintiffs which includes all California counties,
cities, school districts and other special districts who, in years
past, have purchased workers, compensation insurance from the
State Compensation Insurance .Fuad ("SCIF") and are now permissibly
self-insured. The complaint alleges five separate causes of
action all arising from SCIF's failure to reimburse class members
for workers' compensation benefits paid over many years to injured
employees on occupational disease or cumulative injury claims.
Such reimbursement may be required under final orders issued by
the Workers' compensation Appeals Board (as authorized by Labor
Code S 5500.5), which apportion responsibility for these payments
between individual members of the class and SCYF. If liability is
shown, actual damages to class members will include any and all
reimbursement due from SCIF on payments already made to injured
employees by class members, plus accrued interest through today.
Files which may support actual damages could date back as many as
thirty years. The complaint also seeks punitive damages for
SCIF's alleged "bad faith" in dealing with its former insureds
(for example, by ignoring repeated demands for reimbursement over
long periods of time), as well as attorneys' fees and costs of
suit. SCIF is a publicly -chartered workers' compensation
insurance carrier which is subject to civil liability just as any
private carrier would be. SCIF is expected to deny responsibility
and vigorously contest plaintiffs' right to any recovery.
Counsel for the named plaintiffs, who will seek Court
approval to represent the entire class, have represented a class
of California counties and cities in a previous action against
SCIF which resulted in a recovery, after trial, of $18 million.
in this previous action, individual class members recovered all
their actual damages in amounts ranging to over $700,000. As in
the previous action, plaintiffs' counsel will make every effort to
establish liability bofora crass members are required to review
individual case files to present proof of their damages.
This is not a .form for submitting individual damage claims or
for requesting exclusion from the proposed class. Forms for
damage claims or exclusion, along with thorough instructions for
completing them, may be sent to you at a future date after further
proceedings in the Action have occurred.
Plaintiffs' counsel have been retained by the several named
plaintiffs to prosecute the Action on a "contingency' basis. If
there is no recovery, counsel will receive no foe for their
services. However, the litigation could be vert expensive. The
named plaintiffs feel it is appropriate to spread this burden
equally among members of the proposed class -- all of whom stand
to be benefit=ed by the joint effort. Eacth member of t:e proposed
class is therefore asked to contribute $500, on a voluntary basis,
to a "cost fund" which will be established to cover only the out-
of-pockat costs of litigation (for atample. filirty `ens,
depositions, travel expenses, experts fees, photocopying and
postage). No attorneys' fees will be paid from this fund. The
cost fund will be maintained as a segregated fiduciary account for
which a complete accounting will be provided at the conclusion of
the litigation. Class members contributing to this fund will
receive reimin:rsoment of their $Soo prior to the distribution of
damages following any settlement or Judgment in the Action.
To evidence your receipt of this Notice, please sign the
attached "ACXWWLEDGItZXT OF RECEIPT" and mLtMn it imntediaUJI in
the pro -addressed envelope enclosed. Also, please enclose your
$500 check, payable to the "City of Torrdmca V. SCII Cost Fund."
Finally, immediately following the attached Ac3mowledgement
of Receipt is a short "PRELIKIMART QIIESTIO AE." By completing
and returning this Questionnaire, you will maks it unnecessary to
contact you again for the information requested. Also, receipt of
this information will enable plaintiffs' counsel and the Court to
determine at the outset the approximate size of the proposed class
on whose behalf this Action may proceed.
Should you have any questions Concerning the information or
instructions set forth above, feel free to call plaintiffs'
counsel between 9:00 a.m. and 5:00 p.m. weekdays at (Soo) 334-3763
(ask for Helga Brennan or xatie Calderon).
Dated: April 2, 1496. KeDBRl1OT12, WILL L EMT
ROBERT F. MALLORY
PETER B. BRANSTTN, and
LISTER, SUCM M$nan i KUTIN
S7AVID E. ISTER
By:
Robert F. Kallory
Attorneys for Plaintiffs
-3� T
gitY of et 3Z . VF, SCz*
(;,,ASC Case mo. SC 146645)
z hereby acknowledge receipt of than t -do -page "NQ=C3 OF
pzNDzmcl or cwm =TZOX" in this matter, dated April 2, 1996.
Date: April 1996
(]lame at public entity
returning this form)
By:
(Print nacre of person signing) (Signature)
Its:
(Tithe of person signing) (Telephone number)
ZM r JAZ
I. Have you aver been insured by SCIF? Yes No
2. If you answered the last question "yes," for ghat years were
you insured? --
3. Are you still insured by SCIF? Yes Pio
4. At any time since 1966, have you become liable under the
workers' compensation laws of California for payment of
disability benefits, medical treatment, vocational
rehabilitation or other workers' compensation benefits,
because of cumulative injuries or occupational diseases
suffered by employees or former employees? Yes . No
5. tf you answered the last question Kyes,* did any of these
workers' compensation claims involve an award issued by the
Workers' Compensation Appeals Board requiring some portion of
this liability for compensation and benefits to be reimbursed
by SCIF? Yes No I don't know without reviewing
the case files
S. If you answered the last question "yes," does any portion of
&CIF's obligation to reimburse you remain unpaid? Yes
Na I don't know without reviewing the case files
7. If you are now permissibly self-insured for workers'
compensation liability, who administers your claims?
(Name of administrator, either in-house or third party)
(Addreas of administrator)
(Telephone cumber of administrator)