05-0275R


RESOLUTION AUTHORIZING AN OFFER OF SETTLEMENT UNDER RULE 68 OF THE RULES OF CIVIL PROCEDURE.

BY PRESIDENT NESS:

     BE IT RESOLVED, that the city attorney is authorized to make a settlement offer, on behalf of all defendants, to settle all claims, to the plaintiff in the case of Tammy Olson v. city of Duluth, Case Number C1-02-603265, pending in district court, sixth judicial district, consisting of the following:

     All damages, including back pay, attorney fees       $79,224

     Fees, costs and disbursements, not to exceed        $ 3,000

     Unpaid medical bills, or $5,000, whichever is less    $ 5,000

                                          Total                              $87,224.

The offer shall be made as set out in Rule 68 of the Rules of Civil Procedure, and, if accepted within the allowed time, shall operate as a confession of judgment. In that event, the proper city officials are authorized to pay the judgment from the Self Insurance Fund 610.


STATEMENT OF PURPOSE:  Tammy Olson claims she lost her job with the city due to improper actions, including retaliation and disability discrimination.


The city claims she was absent without proper reason and that her complaints were investigated and not substantiated. She then sued. The city denies it is liable. If the city loses, it is liable for back pay and benefits from June 15, 2002, bills, general damages, possible punitive damages, costs and lawyer’s fees. Rule 68 allows the city to make a reasonable offer. If it is refused, and the plaintiff gets less out of a trial, the plaintiff has to pay the city’s costs and disbursements. If it is accepted, the city must pay the amount of the offer. Although the potential liability to the city is large, the city has defenses, and could prevail at trial. Thus, we believe the offer set out in this resolution is reasonable and a rational compromise.

 

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