Fighting for City Hall:

1
Fighting (for) City Hall

• Exploring, Insuring and Controlling Municipal
  Liability Risks

2
Fighting (for) City HallPanel Members

• MODERATOR Ruth Moraski, President
• The Zigmund Company
• Maria McGinn, Underwriting Manager
• Euclid Managers, LLC
• Thomas P. McGinnis, Partner
• Thomas, Thomas Hafer, LLP
• Daniel Pliszka, Manager
• Risk Management Consulting, Bickmore Risk
  Services
• Rick Savakinas, Claims Manager
• Scottsdale Insurance Company

3
Overview

• Immigration Law and the ramifications of
  enforcement or circumvention at the local level
• Can municipal governments outsource their
  responsibility?
• Sovereign immunity in cases of risk transfer

4
Immigration Law Dilemma

• The rights of municipal governments in
  immigration enforcement

5
City of Hazelton

• Third Class under PA Law
• City Settled by Illegal Immigrants from 2000 to
  2006

6
The Ordinances

• Ordinance 2006-13
• Ordinance 2006-18
• Ordinance 2006-19

7
The Complaint

• Aug 15, 2006, Complaint Regarding Illegal
  Immigration Relief Act Ordinance filed
• Trial Set for March 12, 2007

8
The Issues

• Supremacy Clause
• Equal Protection
• Due Process
• Fair Housing Act
• 42 U.S.C. 1981
• Plaintiffs Privacy Rights
• PA Landlord and Tenant Act

9
The Issues cont.

• Hazletons Municipal Powers
• Hazletons Legitimate Police Power

10
The Verdict

• Verdict Rendered on July 26, 2007
• Plaintiffs Won
• City Appealed

11
Summary

• Laws regarding Immigration are changing
  Be Aware
• Open communication of all parties is key Ask
  What If Questions

12
Outsourcing

• Are you truly outsourcing
• your liability?

13
Outsourcing

• Contractual Risk Transfer
• Identifies exposures
• Assigns loss control/prevention responsibilities
• Improves efficiency

14
Outsourcing

• How can risks be minimized?
• Appropriate limits of liability
• Indemnification provisions
• Proper documentation

15
Outsourcing and Sovereign Immunity

• Is there danger of waiving immunity by
  outsourcing?

16
Kosciusko County Board of Commissioners

• Indiana County Population 80,000
• County Jail

17
Kosciusko County Board of Commissioners

• Summary of Case
• North Webster Police Department Arrested Reid for
  Drunk Driving on 3-15-03
• Reid was a Heavy Drinker and put on Watch at the
  County Jail

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Kosciusko County Board of Commissioners

• Summary of Case continued
• Defendant Nurse initially Prescribed Lithium for
  Reid
• Reid Collapsed on 3-18-07 CPR was Administered
• Reid Died

19
The Allegations

• Count I Violation of 42 U.S.C. 1983
• Count II Violation of 42 U.S.C. 1983
• Count III Wrongful Death Under Indiana Law
• Count IV Medical Negligence Claim Under Indiana
  Law 

20
The Issues

• Violations of the 14th Amendment,1983
• County Sheriff, County Jail Physician, Nurse,
  various County Defendants Named
• Judge Denied Qualified Immunity
• Federal Actions Not Tossed Fees and Costs
  Involved

21
The Settlement

• Case Settled for 925K
• Travelers and SIC Split 50-50

22
Summary

• Experienced Claims Handling is Important
• Be Aware of the Jurisdiction
• Understand the Importance of Venues Federal vs.
  State
• Is Settlement an Option?

23
Takeaways

• Open communication of all parties is key. Ask
  those important 'what if' questions
• Experienced claims handling is important
• Is settlement an option?
• Everything an entity does encompasses some risk
• When in doubt, seek legal counsel

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AudienceQA
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Thank you to

• Maria McGinn
• Thomas P. McGinnis
• Ruth Moraski
• Daniel Pliszka
• Rick Savakinas