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Temple City council backs JPIA coalition seeking changes to liability rules
Summary
Council Member Chavez urged support for a coalition led by the California Joint Powers Insurance Authority to seek legislative tweaks addressing large jury awards and third-party litigation financing; the council voted unanimously to approve sending a support letter.
Council Member William Chavez told the Temple City City Council on May 19 that the California Joint Powers Insurance Authority (JPIA) is asking member cities to join a "coalition to protect community services" to seek modest changes to liability law.
Chavez framed the request as a response to what he called rapidly rising jury awards and the growth of third‑party litigation financing that, he said, is increasing pressure on municipal insurance costs. "We've got an increase in 370% of million-dollar claims," Chavez said while summarizing the executive committee discussion and the JPIA recommendation to ask member cities for a letter of support.
He said the effort is intended to be limited: "JPI is not trying to get out of paying claims that are valid claims where cities are negligent. That's not the purpose." Instead, he said the coalition aims to ensure municipalities are held accountable only for their own negligence and to address what he described as so-called deep-pocket effects in verdicts.
Council members asked about who is in the coalition and about litigation financing. A presenter explained that the coalition is led by California JPIA and that litigation financing firms operate like investors—"they front the money" for expensive cases in exchange for a share of a potential award—raising concerns about escalating claim sizes.
After discussion, Chavez moved to approve item 7F (the letter supporting the coalition). The council seconded the motion and approved it by unanimous roll call vote.
The council did not adopt changes to local code or law; the action authorized a letter of support and to participate with JPIA’s outreach to state legislators and retained lobbyists as described in the staff report.
