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Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association David Matthiessen – Director, Claims Munich Reinsurance America, Inc. September 10, 2007

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Page 1: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

Emerging Claims – What’s Hiding in the Bushes?National Trends in Claims and Litigation in the Public Sector

State Risk & Insurance Management Association

David Matthiessen – Director, ClaimsMunich Reinsurance America, Inc.September 10, 2007

Page 2: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Agenda:National Trends and EmergingClaim Issues in the Public Entity Sector

National Trends and Verdicts/Settlements

Public Entity Trends and Verdicts/Settlements

Public Entity Emerging Claim Exposures

1. Strip Search

2. Police Excessive Force

3. Employment Practice Liability

Other Significant Public Entity Exposures

1. Police Pursuit

2. Dangerous Conditions on Public Property

3. All other

Page 3: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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National Trends and Verdicts

Page 4: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

4Source: 2007 US Chamber of Commerce State Liability Systems Ranking Study. The full study is available at www.instituteforlegalreform.org.

Best Moderate Worst

Map of Overall Ranking of State Liability Systems

TX

NM OK

KS

AK

LA

CO

MS AL GA

FL

AZ

WY

NE

MO

IL

AK

SD

IAMI

OHUT

ND

MN

IN

PA

NY

KY

TN

VAWV

SC

ME

NC

NHVT

MA

NJRI

CT

DE

MD

NVC A

OR

WA

MT

ID WI

Page 5: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Cities or Counties with the Least Fair and Reasonable Litigation Environment

State Total %Los Angeles, California 13

Chicago/Cook County, Illinois 11Madison County, Illinois 9

Mississippi (other mentions) 8

New Orleans Parish, Louisiana 6

Miami/Dade County, Florida 6

San Francisco, California 5

New York Greater Metropolitan Region 4

New York (other mentions) 4

Philadelphia, Pennsylvania 4

Beaumont, Texas 3

Source: 2007 US Chamber of Commerce State Liability Systems Ranking Study. The full study is available at www.instituteforlegalreform.org. Base: General Counsel/Senior Litigators (N=1599)

Page 6: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Juries’ Predictability

Best WorstNebraska West Virginia

Utah Alabama

Indiana California

Tennessee Mississippi

Kansas Louisiana

Juries’ Fairness

Best Worst

Nebraska West Virginia

Minnesota Mississippi

Wisconsin Louisiana

Iowa Alabama

South Dakota Illinois

Source: 2007 US Chamber of Commerce State Liability Systems Ranking Study. The full study is available at www.instituteforlegalreform.org.

Summary of Top/Bottom 5 States By Key Elements

Page 7: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

7Source: Insurance Information Institute, American Tort Reform Association. Judicial Hellholes 2006.

Texas

Rio Grande Valley and Gulf

Coast, TX

South Florida

ILLINOIS

Cook County

Madison County

St. Clair County West Virginia

*According to ATRA, “A number of factors contribute to a Judicial Hellhole designation, including the prevalence of forum shopping, novel legal theories, and discovery abuse, as well as the certification of class action lawsuits, the proliferation of junk science, contributions to judges and the uneven application of evidentiary rules.

Watch List

Miller County, Arkansas

Los Angeles County, California

Philadelphia, Pennsylvania

Orleans Parish, Louisiana

Delaware

ATRA’s 2006 “Judicial Hellholes”*

Page 8: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Highest Indemnity Award for aSingle Bodily Injury

$124.0

$10.8

$7.3

$7.2

$5.9

$5.8

$5.5

$5.0

$4.3

$3.4

$3.3

$3.2

$2.0

$1.9

$1.4

$0.6

$0.6

$0 $20 $40 $60 $80 $100 $120 $140

U.S.

Switzerland

Australia

Germany

Belgium

UK

France

Canada

Italy

Spain

Hong Kong

Japan

Austria

Sweden

Norway

Denmark

Portugal

Sources: Insurance Information Institute

Geography Matters

U.S. awards are gargantuan compared to those in other countries

Page 9: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

10Source: Jury Verdict Research. Current Award Trends in Personal Injury, 46th Edition (2007)

LESS THAN$100,000

$100,000 -$249,999

$250,000 -

$499,999

$500,000 -$999,999

$5 MILLIONAND OVER

$1,000,000 -$4,999,999

1995 2005

63% 62%

11%

8%

13%11%

8%7%

6%5%

6%

Rising Jury Awards

Page 10: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Loss Severity Trends are ImpactingHigher Layers of Coverage

A Tillinghast study indicates that:

losses in excess of $25,000 have an annualized trend of 9.8%;

losses in excess of $100,000 = 12.2%;

losses in excess of $500,000 = 18.1%.

An analysis of ISO data and Jury Verdict Research data results indicates a loss trend in recent years to be between 15% to 22% for umbrella layers attaching excess of 1MM primary.

Source: Best Review, In Need of Repair, Nov. 3, 2006

Page 11: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

12Source: Lawyers USA, July 2007.

Value Issue State

$216.7 Million Medical Malpractice (Misdiagnosis) Florida

$160 Million Nursing Home Negligence Texas

$106 Million Wrongful Death California

$61 Million Workplace Harassment (FedEx) California

$51 Million Vioxx Louisiana

$47.5 Million Death of Prisoner Texas

$46 Million Auto Accident Missouri

$44.2 Million Business Dispute (Real estate development) Florida

$44 Million Police Brutality (Baltimore) Maryland

$38.5 Million Product Liability (Truck accident) Texas

2006 Top Ten Verdicts - Nationally

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2002 2003 2004 2005 2006

Top Award: $28B $11.9B $1.6B $1.4B $850M

Number of Top 100

Awards Greater

Than $20 Million:

100 92 83 87 89

Median Award for

Top 100 Verdicts:*$46.9M *$36.1M *$35M *30M TBD

Source: VerdictSearch top 100 verdicts of 2002, 2003, 2004, 2005, 2006; Marsh Limits of Liability 2006 * have been adjusted for inflation

Summary of Top 100 Verdicts by Year

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Median Compensatory Awards for Personal Injury (1999 - 2005) – Highest and Lowest States

State Median Award

Highest:

New York $250,000

Massachusetts $165,000

Lowest:

South Carolina $ 5,715

Oklahoma $ 6,317

National, Overall $ 34,418

Source: Jury Verdict Research. Current Award Trends in Personal Injury, 46th Edition (2007)

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Punitive Awards Reported by State for Personal Injury (1999 - 2005)

State Percent of Cases Awarded

Punitive Damages

Highest:

Alabama 14%

Wisconsin 11%

Lowest:

Connecticut 1%

Maryland 1%

Washington 1%

National, Overall 4%

Source: Jury Verdict Research. Current Award Trends in Personal Injury, 46th Edition (2007)

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Percentage of Awards of $1 Million or More(Total Awards)

Region 1998-2000 2003-2004 2004-2005 Overall

Midatlantic 12% 12% 12% 12%

Midwest 10% 18% 16% 12%

North Central 11% 11% 10% 11%

Northeast 18% 22% 25% 21%

Northwest 7% 8% 12% 7%

South Central 15% 19% 29% 18%

Southeast 10% 15% 15% 12%

Southwest 17% 34% 35% 20%

Source: Jury Verdict Research. Current Award Trends in Personal Injury, 46th Edition (2007)

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Liability 1998 – 2000 2001 – 2002 2003 - 2004 2004 - 2005

Products Liability 60% 63% 65% 64%

Medical Malpractice 47% 50% 57% 55%

Government Negligence 33% 41% 47% 41%

Business Negligence 30% 35% 34% 32%

Premises Liability 12% 16% 15% 13%

Personal Negligence 8% 12% 16% 17%

Vehicular Liability 4% 5% 5% 5%

All Liabilities 13% 15% 17% 17%

Million-Dollar Total Awards Reported by Liability

Source: Jury Verdict Research. Current Award Trends in Personal Injury, 46th Edition (2007)

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Average Price per $1Million of Coverage by Industry, 2006

Sector $ Cost

Highest:

Health Care $47,426

Construction $23,449

Government $21,647

Chemicals, pharmaceuticals $20,405

Lowest:

Insurance $4,770

Finance $5,541

Printing/Publishing $5,873

Education, Nonprofit institutions $5,928

Source: Marsh – Limits of Liability 2006

Page 18: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Public Entity

Liability and Verdicts

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Rank Value Issue Venue

1. $106 M Wrongful Death (Toxicologist murdered husband

whose family claimed county negligently hired a drug

addict)

California

2. $44.3M Excessive Force (Prisoner paralyzed when officer

threw him into a wall)

Maryland

3. $36.67 M Contract (Reservoir contractor claimed city wrongfully

terminated contract and harmed reputation)

New Jersey

4. $35.84M Motor Vehicle (Cook County deputy ran light going 70

mph with no sirens or lights – hit woman – causing

incomplete paraplegia)

Illinois

5. $24.5M Motor Vehicle (Police on high-speed chase injured

other vehicles’ occupants)

Illinois

6. $21M Professional Negligence (Infant was severely brain

damaged when state placed her with foster parents)

New Jersey

Source: VerdictSearch, www.verdictsearch.com

Ten of the Largest Verdicts Against Public Entities in 2006

(Continued)

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Rank Value Issue Venue

7. $18.03M Motor Vehicle (City of Los Angeles was sued for failing

to correct a dangerous situation – no stop sign or

traffic light at an intersection. Pedestrian suffered

brain damage.)

California

8. $18M False Arrest/Civil Rights (The Los Angeles County

Sheriff’s office was sued for the false arrest and

incarceration of a man for 10 months/10 days.)

California

9. $18M Failure to Warn (Long Island Railroad was sued by

three workers who were exposed to asbestos.)

New York

10. $17.45M Employee Benefits/Class Action (The University of

Washington was sued for breach of contract by

employees.)

Washington

Ten of the Largest Verdicts Against Public Entitiesin 2006 (continued)

Source: VerdictSearch, www.verdictsearch.com

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Public Entity Emerging Claim

Exposures

Page 22: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Strip Search

Page 23: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Jail Strip Search – A New “Mass Tort”

The expression "mass torts" generally refers to class actions

involving defective products, such as asbestos, breast implants,

tobacco, securities, etc.

It is rare for a government to be the target of a mass tort suit, and it

is very rare for a federal civil rights claims for damages to be the

foundation of a mass tort claim.

Yet this is exactly what is happening starting primarily with a class

action strip-search case against New York City that settled for $50

million in 2001.

Page 24: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS & SETTLEMENTSFOR STRIP SEARCH CASES

Case NameTotal Settlement Description

Tyson et al vs. New York $50 M 65,000 people illegally strip-searched by jail guards after being arrested for minor offenses in Manhattan and Queens in 1996 and 1997. Case settled in 2001.

Eddleman vs. Jefferson County, KT

$11.5M 4000 people were subjected to illegal strip search.

Wilson vs. Franklin County, KT

Up to $6M Includes juveniles.

Gary, et al vs Sheahan, Cook County, IL

$6.8M 3000 women who where strip searched after the cases against them had been dismissed and ordered released from custody.

Mac vs. Suffolk County, MA $10M 5400 class members. Based on equal protection theory. City did not have an overnight facility and women were transported to County jail and subjected to strip search.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 25: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS & SETTLEMENTSFOR STRIP SEARCH CASES

Case Name Total Settlement Description

Leyba et al vs. Santa Fe County, NM

$8.5M (including $2M in plaintiff attorney fees)

Case settled 7/7/06

13,000 persons subjected to illegal blanket strip search from 10/01 to 4/2005. The first class action strip search settlement in NM. Same firm handling 3 other cases currently pending in the state.

Haney vs. Miami-Dade County, FL

$6.2M (including $1.35M in attorney fees) Case settled

4/05

Lead plaintiffs were non-violent protesters that were arrested and subjected to strip-searches. 1000’s of others that were search between March 2000 and February 2005 are part of class. Mark Merin plaintiff atty.

Foreman et al vs. New Haven CT.

$2.5M (includes $834K in plaintiff

attorney fees) Case settled 4/06

1,600 arrested on minor charges and subjected to strip search.

Source: Verdict Search, Westlaw *Through 6/16/06

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TOP USPUBLIC ENTITY JURY VERDICTS & SETTLEMENTSFOR STRIP SEARCH CASES

Case Name Total Settlement Description

Brusaschetti, et al. v. County of Sacramento, et al.

$15.5M Settlement fund established.

16,156 people arrested and charged with non-violent drug/weapon related offenses were subjected to group strip searches from 3/00 to 6/03.

Hale v. County of Sacramento, et al.

$8,659,406 including attorney fees.

Final number of class participants was 3450.

LA County $2.75M. 71 bicycle activists strip-searched after being arrested at a protest outside the 2000 Democratic National Convention. None were charged. Two dozen of the women cyclists were ordered to strip by sheriff's deputies who performed visual body cavity searches. The women were awarded $70,000 each.

Source: Verdict Search, Westlaw *Through 6/16/06

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Trends in Strip Search Cases

Plaintiffs allege strip search policy violates constitutional rules that allow a

strip search only if a newly booked inmate had been arrested for a crime

involving drugs or violence or if guards have reasonable suspicion inmate is

concealing weapons or contraband.

Multiple Class Action Suits related to strip searches have been filed in the

last few years accusing jail officials of routinely strip-searching inmates in

violation of their constitutional rights.

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Police Excessive Force

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Police Excessive Force- Systemic Problem?

Excessive force cases may be tied to systemic problems within police

department, which have existed for many years. Command structure in

some cases found to have failed to take appropriate corrective actions either

with individual officers or in instituting procedures for dealing with suspects

and the use of force.

Cases involve wide range of issues, from alleged physical abuse to

fatalities caused by firearms. The incidents involved are highly charged, with

political overtones in many cases.

Less than deadly force weapons, such as tasers, pepper spray, rubber

bullets have raised claims of excessive force and improper use of weapon.

Page 30: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Police Excessive Force- Characteristics

Issues of force involve:

Degree of force used for situation

Typically involves physical force during efforts to subdue suspect

Preference to use non-lethal force, such as pepper spray, tasers, etc.

Instances often involve suspects using alcohol, drugs and or are suffering

from mental illness.

Frequency of force used

Possible use of illegal force

Use of force within department impacted by efforts to respond to demands by public

to get tough on crime, potentially leading to aggressive techniques to deal with

suspects. Use of force issues usually involves a handful of officers.

Organizational issues tied to training, policies and discipline.

Page 31: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORPOLICE EXCESSIVE FORCE

Case Name Verdict Date Total Award Description

Estate of Roger D. Owensby v. City of Cincinnati/ Police Dept.

Mar-06 $6,500,000(Settlement)

Excessive force used by police at time of arrest resulting in death of 29-year-old

Jaramillo v. County of Napa

July-05 $6,250,000(Settlement)

Police officer shooting of unarmed man during altercation. Plaintiff rendered a paraplegic.

Mitchell v. Los Angeles Sheriff‘s Dept.

Nov-05 $4,000,000 Police officer shot and killed deceased during an altercation involving a burglary.

Estate of Richard Bledsoe v. City of Evanston Poilce Dept.

Mar-04 $2,700,000(Settlement)

Death resulting from quadriplegic injuries sustained from neckhold in arrest of 55-year-old

Page 32: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORPOLICE EXCESSIVE FORCE

Case Name Verdict Date Total Award Description

Cau Bich Tran v. City of San Jose

Nov-05 $1,825,000 Police officer shot and killed innocent homeowner.

Edward Domingues v. City of New York

Jan-05 $1,750,000 17-year-old kicked during arrest, sustaining a traumatic scrotal hematoma and repture of right testicle.

Local 10, International Longshore and Warehouse Union v. City of Oakland

Mar-06 $1,554,750(Settlement)

Nine dockworkers and 49 demonstrators protesting Iraq War injured by police officers. Plaintiffs alleged excessive force, false arrest and malicious prosecution.

Smith v. City of San Jose

Jun-05 $1,054,000 Death resulting from excessive force by police officers during arrest procedures.

Source: Verdict Search, Westlaw *Through 6/16/06

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Employment Practice Liability

Page 34: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Trends in Employment Practice Liability

Causes of action: discrimination, ADA, hostile work environment,

retaliation, sexual harassment, wrongful termination, violation of whistle-

blower laws.

May involve Family and Medical Leave Act and Equal Pay Act, or any

equivalent state statutes

Frequently involves multiple contentions (e.g. sexual harassment and

hostile work environment)

Source: Jury Verdict Research. Employment Practice Liability: Jury award Trends and Statistics. 2005 Edition.

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5%

37%

12%

46%

Transportation

Government Entities

Manufacturing/Industrial

Service/Retail

Employment Practice Liability:Analysis by Defendant Type (1998-2004)

Source: Jury Verdict Research. Employment Practice Liability: Jury award Trends and Statistics. 2005 Edition.

Page 36: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Employment Practice Liability:Award Trends (1998-2004)

Source: Jury Verdict Research. Employment Practice Liability: Jury award Trends and Statistics. 2005 Edition.

Defendant Type Median Probability Range Total Range Mean

Government

Entities

$200,000 $75,000 - $500,000 $1 - $36.5M $544,371

Manufacturing/

Industrial

$250,000 $65,749 - $767,250 $1 - $25.7M $839,212

Service/Retail $137,853 $40,000 - $417,717 $1 – $18.8M $492,913

Transportation $200,000 $50,000 - $500,000 $1 - $10.0M $544,473

All defendants $175,000 $50,527 - $500,000 $1 - $36.5M $553,761

Page 37: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Employment Practice Liability: Distribution of Awards Against Government Entities(1998 – 2004)

Award Range ($) Percentage

1 – 4,999 2%

50,000 – 9,999 2%

10,000 – 24,999 6%

25,000 – 49,999 8%

50,000 – 74,999 7%

75,000 – 99,999 6%

100,000 – 249,999 25%

250,000 – 499,999 20%

500,000 -749,999 8%

750,000 – 999,999 4%

1,000,000 – 1,999,999 9%

2,000,000 – 4,999,999 4%

5,000,000 + 1%

Source: Jury Verdict Research. Employment Practice Liability: Jury award Trends and Statistics. 2005 Edition.

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TOP USPUBLIC ENTITY JURY VERDICTS* FOREMPLOYMENT PRACTICE LIABILITY

Case NameVerdict Date Total Award Description

Johnson v. State of California (CA)

Jul-05 $20,000,000 Age discrimination against an 80 year old prison physician.

Alberigi v. County of Sonoma (CA)

Mar-06 $6,500,000 County refuses to accommodate and retaliates against a mentally disabled long-time employee.

Yolanda Olivarri v. City of Public Service Board of San Antonio (TX)

Sep-05 $5,850,575 Sexual harassment – meter reader was groped and subjected to sexual comments.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 39: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FOREMPLOYMENT PRACTICE LIABILITY

Case NameVerdict Date Total Award Description

Welch v. City of Anaheim (CA)

Jul-05 $5,215,200 Police lieutenant – lack of promotion opportunities due to disability.

Arpad Tolnay v. City of New Haven (CT)

Dec-05 $5,150,903 Retaliation and demotion for office making comments on several individuals’ strong political influence.

Ulrich v. City and County of San Francisco (CA)

Jun-04 $4,300,000 Violation of physician’s civil rights by hospital in retaliation for criticism.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 40: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FOREMPLOYMENT PRACTICE LIABILITY

Case NameVerdict Date Total Award Description

Christine Boone v. Pennsylvania Office of Vocational Rehab. And PA Dept. of Labor and Industry (PA)

Nov-05 $3,355,000 Discrimination and defamation against a blind attorney employed as director of the Bureau of Blindness.

Johnson, Zubris, Pilosi, Bracchi v. School Dist. Of Philadelphia (PA)

Dec-05 $2,700,000 Plaintiffs’ terminations and denial of promotions motivated by racial discrimination.

Hogan v. Kansas City Board of Police Commissioners (MO)

Dec-05 $2,700,000 Age discrimination of a 54 year old officer – hostile work environment.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 41: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FOREMPLOYMENT PRACTICE LIABILITY

Case NameVerdict Date Total Award Description

Auvenshine v. Troy School District (NY)

Apr-06 $2,400,000 Racial discrimination of Chinese female math teacher in receiving negative evaluations and wrongful termination.

Morse v. City of Inglewood (CA)

Jan-05 $2,400,000 Two police officers subjected to disparate treatment due to race.

Kotla v. Regents of the University of California (CA)

May-05 $2,100,000 Employee fired for testifying on behalf of co-worker in sexual harassment suit.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 42: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FOREMPLOYMENT PRACTICE LIABILITY

Case NameVerdict Date Total Award Description

Glenn-Davis v. Oakland Police Department (CA)

Mar-06 $2,000,000 Failure to promote office – sex and pregnancy discrimination in violation of Title VII.

Barth v. Village of Mokena (IL)

Jun-06 $1,700,000 Ranking police officers retaliated against female office for complaining about hostile work environment.

Mokler v. Orange County Office on Aging (CA)

Apr-05 $1,700,000 County employee terminated after making claims her office violated state funding requirements.

Source: Verdict Search, Westlaw *Through 6/16/06

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Other Significant Public Entity

Claim Exposures

Page 44: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Police Pursuit

Page 45: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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Police Pursuit

Effect of Scott v. Harris

Still a Significant Claim Exposure?

Page 46: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORPOLICE PURSUIT

Case NameVerdict Date Total Award Description

Guardians of Eric Brody v. Broward County Sheriff’s Office (FL)

Dec-05 $30,609,298 Police vehicle struck another vehicle at more than 50 mph resulting in coma and brain injury.

Estate of Owen v. City of Dearborn (MI)

Jul-05 $25,000,000 Innocent driver killed by officer engaged in high-speed chase on newly fallen snow.

Gaston v. City of Springfield (IL)

Mar-06 $24,000,000 Three males injured including quadriplegia due to police negligence during vehicle pursuit.

Source: Verdict Search, Westlaw *Through 6/16/06

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TOP USPUBLIC ENTITY JURY VERDICTS* FORPOLICE PURSUIT

Case NameVerdict Date Total Award Description

Hudson v. City of Chicago (IL)

Jul-05 $17,682,374 Driver struck by police vehicle involved in a chase that was neither wanted or needed.

Estate of Qing Chang and Baby Chang v. City of Chicago (IL)

Nov-05 $17,500,000 Negligent police pursuit – police vehicle struck and killed pregnant female pedestrian.

Plaintiff v. Pinellas County Sheriffs Office (FL)

No Date Given

$7,018,976 Negligent police pursuit – failure to warn of approach. Two people were killed ages 20 and 23.

Morrison, Lewis, Rosin v. City of Scottsdale (AZ)

Dec-05 $1,500,000(Settlement)

Illegal police chase on a one-way street caused fleeing vehicle to impact decedent’s vehicle.

Source: Verdict Search, Westlaw *Through 6/16/06

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Dangerous Conditions on Public Property

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Dangerous Conditions on Public Property

Generally, in order to recover damages related to a Dangerous condition on

public property, the plaintiff must establish the following:

1. The property was in a dangerous condition;

2. The dangerous condition was the cause of the plaintiffs injuries;

3. The condition created a reasonably foreseeable risk of the type of injury

plaintiff sustained and;

4. The entity either created the condition or had actual or constructive notice

of its existence.

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TOP USPUBLIC ENTITY JURY VERDICTS* FORDANGEROUS CONDITIONS ON PUBLIC PROPERTY

Case NameVerdict Date Total Award Description

Medina v. City of Fontana

Sep-04 $37,500,000 Student struck and killed walking to school – absence of sidewalks blamed

Dominguez v. City of San Francisco

Sep-05 $27,000,000(Settlement)

Wrongful death by city’s failure to remedy hazardous condition at pedestrian crosswalk.

Betts v. State of California

Jun-05 $17,003,882 Improper location of designated chain installation on mountain pass highway.

Source: Verdict Search, Westlaw *Through 6/16/06

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TOP USPUBLIC ENTITY JURY VERDICTS* FORDANGEROUS CONDITIONS ON PUBLIC PROPERTY

Case NameVerdict Date Total Award Description

Ramirez v. Cal Trans Oct-05 $9,995,000 Driver and occupant fatalities from dangerous highway condition and lack of guardrails at California aqueduct.

Maria L. Tipaldo v. City of New York (NY)

Mar-06 $9,500,000(Settlement)

Multi-vehicle impact from city failing to properly safeguard bridge.

Confidential v. Contra Costa County

May-05 $5,788,400(Settlement)

Collision occurred when driver failed to stop at stop sign partially obscured by vegetation.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 52: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORDANGEROUS CONDITIONS ON PUBLIC PROPERTY

Case NameVerdict Date Total Award Description

Cornette v. State of California

Mar-04 $5,673,790 Couple injured when their vehicle struck by another due to CalTran failing to place median barrier on roadway.

Navarra v. City of Oakland

Nov-05 $5,270,000 Injuries sustained at intersection crash with improperly pruned vegetation restricting vision.

Estate of Christopher Scott v. City of NY and Edward Gladick (NY)

Nov-05 $4,500,000 City failed to maintain roadside foliage obstructing clear view of individuals in crosswalk.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 53: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORDANGEROUS CONDITIONS ON PUBLIC PROPERTY

Case NameVerdict Date Total Award Description

Sehrer v. State of California

Feb-05 $4,399,401(Settlement)

Dangerous condition created on roadway as design did not allow for proper water drainage.

WEI v. The City of Pittsburgh (PA)

Oct-05 $3,679,000 Improper maintenance of roadway at intersection/crosswalk.

Villegas v. City of New York (NY)

May-06 $2,750,000(Settlement)

Pregnant female falls on wet stairway with hazardous handrail at a Staten Island public school.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 54: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORDANGEROUS CONDITIONS ON PUBLIC PROPERTY

Case NameVerdict Date Total Award Description

McDonald v. City of Fort Bragg

Feb-04 $2,300,000(Settlement)

Disabled pedestrian injured in crosswalk – obstructed view.

Estate of D’Andre Joseph Monk v. Burlington County Special Services School (NJ)

Mar-06 $1,800,000 Non-swimmer drowned in community pool.

James L. Mazzarini Sr. v. Commonwealth of Pennsylvania (PA)

Oct-05 $1,500.000 Uneven roadway blamed for SUV rollover.

Source: Verdict Search, Westlaw *Through 6/16/06

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All Others

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All Others- Significant Exposures

Cases include various types of exposures, generally broken down between

law enforcement, transportation, and education.

The cases involve primarily vehicle-related accidents, though there are

also land use, professional liability, breach of contract, among others.

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TOP USPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Estate of Huggins v. Eastern Healthcare Sumter Co. (SC)

Dec-05 $28,500,000 Inmate did not receive insulin while jailed.

Carol Ann Agster, et al. v. County of Maricopa, et al (AZ)

Mar-06 $9,000,000 Prison personal failed to properly care for inmate with methamphetamine overdose and drug history.

Blackwell, Carey, Kevalis v. Bailey Cook, Town of Seymour, et al. (CT)

Dec-05 $6,284,419 Fatal auto accident, motor vehicle municipal liability.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 58: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Estate of Michele and Aleck Gunther v. Bay City Public Schools (MI)

Oct-05 $5,960,000(Settlement)

School bus struck and killed student walking across the street.

Shraff Ali v. NYC Transit Authority (NY)

Mar-06 $5,139,075 Driver failed to properly secure wheelchair-bound passenger.

Alboroy Bartley v. City of NY and NYC Board of Education (NY)

Apr-06 $4,500,000 Negligent supervision when student’s eye was destroyed by classmate’s punch.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 59: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Marlene Allen and Estate of Allen v. Mass. Bay Transit Authority (MA)

Oct-05 $3,900,000(Settlement)

Failure to stop commuter train after passenger suffered cardiac arrest that led to his death.

Katina Poll v. New York City Transit Authority (NY)

Mar-06 $3,000,000 Municipality’s subway door closed on arm, causing fall.

Shadea Hamilton v. City of New York and Green Bus Lines, Inc. (NY)

May-06 $2,750,000(Settlement)

City vicariously liable for actions of bus driver who failed to look for foot traffic, striking pedestrian in crosswalk.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 60: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Estate of Allen Ingoldby v. School Board of Pinellas County (FL)

Feb-05 $2,500,000(Settlement)

8-year-old student was struck and killed by a vehicle after a bus driver dropped a student off on a five-lane county road.

Estate of Rebecca N. Garrisi and Jesse R. v. Grand Traverse Metro Fire Dept. (MI)

Jan-06 $2,300,000(Settlement)

Fire truck struck occupied vehicle.

LaShonda Jones v. City of Eunice and Eunice Police Department (LA)

Sep-05 $1,758,107 Pedestrian struck by intoxicated driver who was moments earlier released from a police stop.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 61: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP USPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Estate of Marcus Morgan v. Clover Park School District (WA)

Feb-06 $1,525,000(Settlement)

School bus struck and killed student walking in designated crosswalk.

Theodore Munoz v. City of New York, NYC Fire Depart (NY)

Feb-06 $1,340,000 70-year-old male struck by a fire truck in crosswalk.

Abraham Mitchell v. The State of New York (NY)

Oct-05 $1,250,000(Settlement)

State and local government failed to treat prisoner’s glaucoma leading to near total loss of sight.

Wright v. Neosho School District; Estate of Hoover (MO)

Apr-06 $1,000,000 Six-year-old student run over by school bus.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 62: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

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TOP CALIFORNIAPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

McGee v. City of Alameda

Oct-05 $25,000,000(Settlement)

Construction worker electrocuted when drill struck live wire that had not been secured underground.

Marroquin v. Los Angeles County Sheriff’s Department

Jun-06 $15,300,000 Sheriff made u-turn without lights or siren in front of oncoming vehicle.

Melendez v. Los Angeles County MTA

Aug-05 $12,000,000 Speeding city bus on residential street crashes into pickup backing out of driveway.

Adam Brothers vs. County of Santa Barbara

Nov-04 $5.6M including

$130K in punitive

damages and

$1.1M in plaintiff

attorney fees

Planners wrongfully designated

95 acres as protected wetlands.

Case is presently on appeal.

Source: Verdict Search, Westlaw *Through 6/16/06

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TOP CALIFORNIAPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Castillo v. San Gabriel Unified School District

Mar-05 $5,300,000(Settlement)

A high school football player alleged his severe brain damage was a result of allowing him to continue to play after sustaining a head injury in a game.

Boggio v. Los Angeles County MTA

Apr-05 $5,200,000(Settlement)

Pedestrian in crosswalk is struck by a city bus.

Borja v. Santa Clara County Transportation Authority

Aug-04 $2,165,327 Disabled passenger’s scooter tipped over causing injuries when not secured properly by city bus driver.

Joshua C. v. County of Orange

Jun-05 $2,000,000(Settlement)

Foster children were negligently mistreated by the county.

Anderson v. County of Sacramento

Feb-04 $1,900,000(Settlement)

Slip and fall on an escalator that was inadequately maintained at Sacramento International Airport.

Source: Verdict Search, Westlaw *Through 6/16/06

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TOP CALIFORNIAPUBLIC ENTITY JURY VERDICTS* FORALL OTHERS

Case Name Verdict Date Total Award Description

Condon-Johnson & Assoc. v. Sacramento Municipal Utility District

Jul-05 $1,265,166 Breach of contract. City denied a claim for equitable adjustment submitted by drilling company working at hydroelectric plant.

Plaintiff, Estate of Guardian v. Contra Costa County

Sep-05 $1,118,434 A 54-year-old diabetic was left in a comatose state as a result of patient being negligently transported.

Deschene v. City of Westminster

May-05 $1,100,000(Settlement)

Defendant negligent in marking, maintaining, and providing warnings about utility line locations.

Weir v. State of California

Feb-05 $1,100,000(Settlement)

California Highway Patrol vehicle made u-turn across highway in front of approaching vehicle.

Source: Verdict Search, Westlaw *Through 6/16/06

Page 65: Emerging Claims – What’s Hiding in the Bushes? National Trends in Claims and Litigation in the Public Sector State Risk & Insurance Management Association

Thank you for your attention. Questions?

David MatthiessenMunich Reinsurance America, Inc.

© Copyright 2007 Munich Reinsurance America, Inc. All rights reserved. The Munich Re America name is a mark owned by Munich Reinsurance America, Inc.

The material in this presentation is provided for your information only, and is not permitted to be further distributed without the express written permission of Munich Reinsurance America. This material is not intended to be legal, underwriting, financial, or any other type of professional advice.