Re “Factors to Weigh Before City Decides to Pay or Appeal $8.8M”
Last week’s $8.8 million judgment against City Hall in the case of a Culver City cop shooting and killing an unarmed suspect, may not be nearly as devastating as first believed.
Insurance is the reason for the vastly lighter hit.
Because of a 22-city Southern California consortium it belongs to, and additional insurance coverage, City Hall’s ultimate liability is expected to be in the $1 million range.
For a community that last year begged voters to pass a half-cent sales tax increase to close a deficit, the smaller payoff is a dramatically better outcome.
The case involving the shooting death of robbery suspect Lejoy Grissom, 27, in April 2010 remains unfinished. Attorney’s fees have yet to be determined by a U.S. District Court judge. City Councilman Andy Weissman, an attorney, estimated that ruling could come by the end of the month. Once a final judgment formally is entered, City Hall will have 30 days to decide whether to appeal or pay up.
The city belongs to the Independent Cities Risk Management Authority, which brings certain privileges, as explained by Mr. Weissman.
“I believe the city's self-insured retention is $1 million,” he said. “Self-insured retention is the amount that must be paid by the insured before the insurance policy will respond to a loss.”
According to the group, ICRMA's retention is $5 million, and the city has excess insurance coverage up to $30 million.
ICRMA provides coverage on an occurrence basis to members from their self-insured retentions, up to ICRMA’s pool retention, with the purchase of excess insurance above that amount.
Members pay an annual contribution consisting of actuarially determined losses, administrative expenses, and excess insurance.
