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County approves settlement in 2021 inmate death; $250,000 annuity established for child beneficiary
Summary
St. Joseph County approved a settlement resolving a 2021 inmate death claim with an annuity purchase of $250,000 to provide guaranteed payments to the deceased inmate’s child; attorney said trial exposure and attorney fees could have been substantially higher.
Attorney Peter J. Augustino presented a tentative settlement resolving a claim arising from an April 2021 inmate death. Augustino said the county had strong defenses but faced the prospect of a high exposure and significant attorney-fee costs.
"The exposure in the case was in the millions...we had some strong defenses in the case," Augustino said, adding that attorney-fee exposures alone could have reached "$4 to $500,000." Through mediation the parties reached the settlement before the board consisting of structured payments intended to protect the child beneficiary.
Under the settlement the county will purchase an annuity costing $250,000 that pays guaranteed sums over the beneficiary child’s lifetime; Augustino said the annuity is designed to prevent family members from spending the principal and that a guardianship — the child’s aunt in Delaware probate court — will oversee the proceeds.
Commissioners un-tabled the item (it had been tabled previously after an executive session) and voted to approve the settlement. Commissioners Morton, Hayen and Baxter recorded affirmative votes on the motion.
