05-0336R


RESOLUTION AUTHORIZING PAYMENT OF $31,545.06 TO AMERICAN FAMILY INSURANCE, AS SUBROGEE OF JOEL STOCKE, FOR SETTLEMENT OF SUBROGATION CLAIM ARISING FROM A POLICE DEPARTMENT TACTICAL RESPONSE TEAM CALL-OUT ON MARCH 18, 2004.

BY COUNCILOR LITTLE:

     RESOLVED, that the proper city officials are authorized to pay to American Family Insurance, as subrogee of Joel Stocke, the amount of $31,545.06 in full settlement of all claims for building damage to their insured’s property at 1911 East Third Street resulting from a police department tactical response team call–out, which occurred on March 18, 2004; payment to be made from the Self Insurance Fund 610.


STATEMENT OF PURPOSE:  On March 18, 2004, the police department tactical response team responded to a house located at 1911 East Third Street. The home was rental property occupied by a tenant and owned by Joel Stocke. The team deployed tear gas into the home causing damage to the structure. Extensive cleanup was required. The property was uninhabitable during the repairs, causing loss of rent. The city is liable to an innocent property owner for damages caused by an exercise of police powers. Wegner v. Milwaukee Mut. Ins. Co., 479 N.W.2d 38 (Minn. 1991). The office of the city attorney has investigated the legal and factual basis for the claim and recommends settlement.

 

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