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Home My WebLink About1984-06-19; City Council; 7790; Workers comp claim - I. SchnorenbergCIT --JF CARLSBAD - AGEND. -- 31LL TITLE: WORKERS COMPENSATION CLAIM -- CASE OF h6# 779 0 IDALIA SCHNORENBERG, RESERVE POLICE OFFICER MTG. 611 9/84 DEPT. PER DEPT. HD.- CITY MOR.& CITY ATl'Y&!b- RECOMMENDED ACTION: Adopt Resolution No. 71437 accepting settlement offer for city's lien. ITEM EXPLANATION: IDALIA SCHNORENBERG is a Reserve Police Officer injured on duty April 23, 1979 in an automobile accident caused by another person, Anne Francis Kirkpatrick. Since the accident there has been continued legal activity among three parties, the city, Ida1 i a Schnorenberg , and Ki rkpatri ck. The city has a lien against Kirkpatrick of $44,835.22 to help pay workers compensation costs related to the injury of Mrs. Schnorenberg. has an additional future liability to Mrs. Schnorenberg of $28,500 because of her on-duty injury. The city Mrs. Schnorenberg has settled with Kirkpatrick and will receive compensation over a period of ten years. to pay the city $15,000 toward the $44,835.22 lien, and Mrs. Schnorenberg will accept her settlement from the third party instead of the $28,500 from the city. As part of the settlement Kirkpatrick has offered The City' s Worker Compensation Administrator and Attorney recommend acceptance of this settlement offer. FISCAL IMPACT: The City will receive $15,0006r settlement of its $44,835.22 lien against Kirkpatrick. The city future liability of $28,500 will be extinguished by this settlement. EXHIBIT: Resolution No. 7637 Letter from England & Greenberg dated May 18, 1984 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 1E 19 2c 21 22 24 25 26 27 28 RESOLUTION NO. 7637 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING A THIRD-PARTY COMPROMISE AND RELEASE IN THE CASE OF IDALIA SCHNORENBERG. WHEREAS, the City Council has established and clearly defined its authority to settle Workers Compensation claims in excess of Five Thousand Dollars ($5,000.00); and WHEREAS, a Third-party Compromise and Release in the Case of Idalia Schnorenberg vs. the City has been agreed to; and WHEREAS, the City would receive $15,000.00 against a third party lien of $44,835.22; and WHEREAS, IdaLia Schnorenberg would be compensated by the third-party and release the City from a claim of $28,500.00; NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council authorizes and directs the City Manager to obtain a Third-party Compromise and Release settlement in the Workers Compensation Case of Idalia Schnorenberg in the amount stated. /// /// /// /// /// /// /// /// 1 2 4 5 9 10 11 12 13 14 15 16 17 ia 19 20 21 22 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 19th day of June , 1984 by the following vote, to wit: AYES: Council WKbers Casler, lewis, Kulchin, Chick and PreSCOtt NOES: None ABSENT: None LdL MARY H. $ASLER, Mayor ATTEST : 1- op ALETHA L. RAUT ( SEAL) -2- 3 ENGLAND & GREENBERG A PROFESSIONAL CORPORATION SUSAN L. ENGLAND DAVIDS. GREENBERG STEPHEN I). WISMAR 438 CAMlNO DEL RIO SOUTH SUITE B-118 SAN DIEGO. CALIFORNIA 92108-3578 (619) 296-5097 May 18, 1984 CITY OF CARLSBAD 1200 Elm Avenue Carlsbad, CA 92008-1989 Attn: Frank Mannon, Assistant City Manager Re : Idalia Schnorenberg v. City of Carlsbad 80 SD 61718 Dear Mr. Mannon, Some time ago, we discussed settling the Idalia Schnorenberg file by reduction of the City's lien claim to $15,000.00 in exchange for a third-party Compromise and Release. Although the City has expended substantial monies on this case, there are further expenditures to be made, including potentially more rehabili- tation benefits and all of the permanent disability which has not yet been decided by the Appeals Board. The present agreement would wipe out our further obligation to pay Ms. Schnorenberg. Ey the terms of the settlement, Ms. Schnorenberg will be purchased an annuity by the third-party defendant and will also be given some cash. The settlement breaks down as follows: $32,600.00 to her initially, of which about $3,600.00 will be for medical recovery. At the end of the first and second year anniversarys of the settlement, she will receive additional sums of $5,000.00 each year, at the end of the fourth year, she will receive $10,500.00, at the end of the sixth year, she will receive $15,000.00 and at the end of the eighth and tenth years, she will receive $20,000.00 each year. As you can see, this gives Ms. Schnorenberg substantially more benefits then she would be entitled to under workers' compensation, although those benefits are projected to be greater in her later years than at the present. The City would receive $15,000.00 on their present lien of $44,835.62, but will get out of future liability of an additional $28,500.00 by reason of the settlement. As you are aware, the settlement was recommended by Judge Yale at the Conference on March 26, 1984 and was recommended to you. CITY OF CARLSBAD Re: Idalia Schnorenberg v. City of Carlsbad May 18, 1984 Page 2 As indicated in our letter to you of March 27, 1984, part of the rationale of reducing our lien has to do with the issue of whether or not all of the upper extremity problems were actually related to the automobile accident, an issue that wil.1 be vigorously pursued by the third-party defendant. If we are unsuccessful in showing the reasonableness of payment of those benefits, our lien would actually only about $5,600.00. When I discussed this with you on March 29, 1984, you were going to obtain Council authority for this settlement. I have not heard from you since that time as to whether or not it was approved. In any event, we have drafted settlement papers for applicant's signature and I am forwarding to you at this time the release that needs to be executed on behalf of the City of Carlsbad. Very truly yours, ENGLAND & GREENBERG SUSAN L. ENGLAND SLE/dt Enc. cc: BIERLY & ASSOCIATES Attn: Bruce Miller RELEASE AND SETTLEMENT OF CLAIM IN CONSIDERATION of the payment of fifteen thousand dollars ($15,000.00) to the CITY OF CARLSBAD, the undersigned, on behalf of the CITY OF CARLSBAD, hereby forever releases, acquits, discharges, and covenants to hold harmless ANNE FRANCIS KIRKPATRICK, and Hartford Accident & Indemnity Company, her insurer, and their agents, servants, successors, heirs, executors, administrators, and all other persons, firms, corporations, associations, partnerships, of and from any and all claims, causes of action, actions, demands, rights, damages and costs, loss of service, expenses and compensation whatsoever, which the undersigned now has or which may hereafter accrue on account of or in any way growing out of any known or unknown, foreseen or unforeseen damages resulting from that incident described and set forth in San Diego Superior Court Action No. N14646, in which the CITY OF CARLSBAD is the plaintiff in intervention. It is understood and agreed that the settlement is the compromise of a doubtful and disputed claim, and that the consideration being paid is not to be construed as an admission of liability on the part of any party or parties hereby released, and that said releasees deny liability therefore, and intend merely to avoid litigation and buy their peace. It is further understood and agreed that all rights under Section 1542 of the California Civil Code in any similar law of any state or territory of the United States are hereby expressly waived. The under c signed understands that Section 1542 of the California Civil Code provides as follows: "A general release does not extend to claims where the creditor does not know or expect to exist at the time of executing the release which, if known by him, may have materially affected his settlement with the debtor. 'I This agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors, representatives and assigns. Each of the parties hereto agrees to pay their own costs incurred in the course of prosecuting or defending the above-described action. The undersigned declares and represents that no promise, inducement or agreement not herein expressed has been made to the undersigned, and that this release contains the entire agreement between the parties hereto. The undersigned have read the foregoing release and fully understand it. Executed this day of April, 1984. CITY OF CARLSBAD Authorized Representative APPROVED AS TO FORM: DATED : , 1984 SUSAN ENGLAND DATED : , 1984 RAY J. ARTIANO Page 2 7