04-0645R


RESOLUTION APPROVING SETTLEMENT OF CLAIM OF AMERICAN FAMILY INSURANCE, AS SUBROGEE OF LINDA LATOUR, IN THE AMOUNT OF $10,000.

BY COUNCILOR STOVER:

     RESOLVED, that the proper city officials are authorized to pay to American Family Insurance, as subrogee of Linda Latour, the amount of $10,000 in full and final settlement of all claims for damage to their insured’s property at 518 North 43rd Avenue West resulting from a sewer backup, which occurred on January 4, 2004; payment to be made from the Self Insurance Fund 0610.


STATEMENT OF PURPOSE:  On January 4, 2004, a blockage occurred in the municipal sanitary sewer. As a result of that blockage, sewage flowed into the basement of the house located at 518 North 43rd Avenue West. The property owner was reimbursed her policy limit of $10,000 by her insurance company, American Family Insurance, which now seeks recovery from the city.


The city’s liability is based upon the duties and obligations to maintain the public sewers and keep them free of debris.


Proper notice of claim was given. 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 and recommends this settlement.