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Town manager flags proposed state change to governmental liability limits; council agrees to prepare a letter
Summary
Town Manager Matt Justice warned council of a Tennessee bill that would more than double municipal liability limits under the Governmental Tort Liability Act; council asked staff to send a letter describing the local impact to state legislators.
Town Manager Matt Justice alerted the Signal Mountain Town Council on Feb. 10 to pending legislation in Nashville that would raise liability limits under the Tennessee Governmental Tort Liability Act. Justice said the proposed change would more than double current liability limits and could increase municipalities’ exposure and insurance costs.
Current statutory caps are $300,000 for many claims, the town manager said; the pending legislation would raise that amount to roughly $600,000 or more, he said. Justice urged council members to take notice because the House Civil Justice subcommittee was scheduled to hear the bill on Wednesday, Feb. 12.
Council members directed staff to prepare a letter for state legislators outlining the potential impact on the Town of Signal Mountain and asked that the town manager or staff circulate a draft. One councilor suggested directing the letter to Senator Watson and Representative Renaud to describe the local implications if liability caps are increased.
The town manager said he would prepare materials and the council indicated it would either send the town letter or advise residents to contact their representatives as well.
