Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance Litigation topic
No spam. Unsubscribe anytime.
Euclid law director outlines litigation, says insurer agreed to defend police‑pursuit case 'with reservation of rights'
Summary
The law department described outside‑counsel spending and a pending police pursuit case whose insurer initially denied coverage but later agreed to provide defense 'with a reservation of rights.' The department also discussed a large prior settlement and the city’s use of self‑insurance for certain liabilities.
The law department lead told the executive finance committee the office handles civil litigation, contract review and prosecution support for municipal matters and that outside counsel and specialist experts drive a sizable portion of the department’s budget.
On a high‑profile matter, the presenter described a police pursuit case that resulted in the death of a third party and noted the city’s insurer initially denied coverage. The department retained outside counsel to defend officers and to press the coverage question; the insurer subsequently agreed to provide coverage but ‘with a reservation of rights,’ meaning the carrier may dispute responsibility later, the presenter said.
The presenter explained the city is largely self‑insured for certain categories of claims and said judgment and liability spending has fluctuated because of past large settlements. He noted a multi‑million dollar settlement tied to earlier incidents (cited as roughly $3,000,000 in past years) that has now been paid off, which reduced projected liabilities in recent budget years.
The law department outlined typical outside‑services spending — expert witnesses, appraisals and litigation specialists — and estimated a working figure of roughly $200,000 for outside legal services in a year with active litigation. The department also described how certain costs (appraisals for eminent domain, specialized testing) are assigned to professional‑services accounts and explained coverage thresholds: for some police‑liability coverages, the city pays claims and fees up to a $100,000 retention before the carrier begins to pay.
Council members sought clarification about which claims are covered by insurance, whether the city should pursue additional umbrella policies and the long‑term cost tradeoffs of self‑insurance versus purchased coverage. Staff said brokers regularly review options; prior analyses showed self‑insurance was less costly than full coverage for some lines but that umbrella coverage remains under consideration for catastrophic exposures.
The law department also reminded the committee that outside legal costs and judgments are inherently uncertain and that budget estimates reflect that unpredictability.
