01-0705R

RESOLUTION AUTHORIZING PAYMENT OF $12,500 TO OLIVE KRUGER AND HER ATTORNEY, ROBERT C. FALSANI, IN FULL SETTLEMENT OF CLAIMS ARISING FROM AN ACCIDENT ON JANUARY 19, 2000.

BY COUNCILOR ECKENBERG:

        BE IT RESOLVED, that the proper city officials are authorized to pay to Olive Kruger and her attorney, Robert C. Falsani, the sum of $12,500 in full settlement of all claims arising from a motor vehicle accident with a city vehicle on January 19, 2000; payment to be made from the self insurance fund.



STATEMENT OF PURPOSE:  On January 19, 2000, an accident occurred at the intersection of Commonwealth Avenue and Dickson Street in the city of Duluth between Daryl Kruger and Bruce O'Brien, an employee of the city of Duluth. At that time, O'Brien was operating a pick-up truck and pulled out from a stop sign and entered the intersection at a time when a vehicle being driven by Daryl Kruger was approaching the intersection. A collision occurred and Olive Kruger, a passenger in the vehicle operated by Daryl Kruger, sustained permanent physical injuries.

The city's liability is based upon the legal principle that an employer is liable for the negligence of its employees. Here, sufficient evidence exists to conclude that the city's employee was negligent, that his negligence was a direct cause of the injuries sustained by Olive Kruger and that the employee's negligence was greater than any negligence which a jury may attribute to Daryl Kruger.

The city of Duluth has investigated this claim and verified the damages and expenses. The civil division of the city attorney's office analyzed the city's loss exposure. Settlement negotiations were conducted, and an agreement has been reached in the amount of $12,500. The city attorney's office recommends this settlement.