2007 International 2007 International ConferenceConference

Fighting (for) City Hall:Fighting (for) City Hall:

Exploring, Insuring and Controlling Municipal Liability Risks

Fighting (for) City HallFighting (for) City HallPanel MembersPanel Members

• MODERATOR: Ruth Moraski, President The Zigmund Company

• Maria McGinn, Underwriting Manager Euclid Managers, LLC

• Thomas P. McGinnis, Partner Thomas, Thomas & Hafer, LLP

• Daniel Pliszka, Manager Risk Management Consulting, Bickmore Risk Services

• Rick Savakinas, Claims Manager Scottsdale Insurance Company

OverviewOverview

• Immigration Law and the ramifications of enforcement or circumvention at the local level

• Can municipal governments outsource their responsibility?

• Sovereign immunity in cases of risk transfer

Immigration Law DilemmaImmigration Law Dilemma

The rights of municipal governments in immigration

enforcement

City of HazeltonCity of Hazelton

• Third Class under PA Law

• City Settled by Illegal Immigrants from 2000 to 2006

The OrdinancesThe Ordinances

• Ordinance 2006-13

• Ordinance 2006-18

• Ordinance 2006-19

The ComplaintThe Complaint

• Aug 15, 2006, Complaint Regarding Illegal Immigration Relief Act Ordinance filed

• Trial Set for March 12, 2007

The IssuesThe Issues

• Supremacy Clause

• Equal Protection

• Due Process

• Fair Housing Act

• 42 U.S.C. 1981

• Plaintiff’s Privacy Rights

• PA Landlord and Tenant Act

The Issues cont.The Issues cont.

• Hazleton’s Municipal Powers

• Hazleton’s Legitimate Police Power

The VerdictThe Verdict

• Verdict Rendered on July 26, 2007

• Plaintiffs Won

• City Appealed

SummarySummary

• Laws regarding Immigration are changing – Be Aware

• Open communication of all parties is key – Ask ‘What If’ Questions

OutsourcingOutsourcing

Are you truly outsourcing

your liability?

OutsourcingOutsourcing

Contractual Risk Transfer

• Identifies exposures

• Assigns loss control/prevention responsibilities

• Improves efficiency

OutsourcingOutsourcing

How can risks be minimized?• Appropriate limits of liability

• Indemnification provisions

• Proper documentation

Outsourcing and Sovereign Outsourcing and Sovereign ImmunityImmunity

Is there danger of waiving immunity by outsourcing?

Kosciusko County Board of Kosciusko County Board of CommissionersCommissioners

• Indiana County Population 80,000

• County Jail

Kosciusko County Board of Kosciusko County Board of CommissionersCommissioners

Summary of Case:

• North Webster Police Department Arrested Reid for Drunk Driving on 3-15-03

• Reid was a Heavy Drinker and put on Watch at the County Jail

Kosciusko County Board of Kosciusko County Board of CommissionersCommissioners

Summary of Case continued:

• Defendant Nurse initially Prescribed Lithium for Reid

• Reid Collapsed on 3-18-07; CPR was Administered

• Reid Died

The AllegationsThe Allegations

• Count I: Violation of 42 U.S.C. 1983

• Count II: Violation of 42 U.S.C. 1983

• Count III: Wrongful Death Under Indiana Law

• Count IV: Medical Negligence Claim Under Indiana Law 

The IssuesThe Issues

• Violations of the 14th Amendment,1983

• County Sheriff, County Jail Physician, Nurse, various County Defendants Named

• Judge Denied Qualified Immunity

• Federal Actions Not Tossed; Fees and Costs Involved

The SettlementThe Settlement

• Case Settled for $925K

• Travelers and SIC Split 50-50

SummarySummary

• Experienced Claims Handling is Important

• Be Aware of the Jurisdiction

• Understand the Importance of Venues – Federal vs. State

• Is Settlement an Option?

TakeawaysTakeaways

• Open communication of all parties is key. Ask those important 'what if' questions

• Experienced claims handling is important

• Is settlement an option?• Everything an entity does

encompasses some risk• When in doubt, seek legal counsel

AudienceAudience

Q&AQ&A

Thank you to …Thank you to …

• Maria McGinn

• Thomas P. McGinnis

• Ruth Moraski

• Daniel Pliszka

• Rick Savakinas