CITY OF
MEMORANDUM
TO: FROM: DATE: SUBJECT: REVIEWED:
RANCHO PALOS VERDES
HONORABLE MAYOR & CITY COUNCil MEMBERS GARY GYVES, SENIOR ADMINISTRATIVE ANALYST AUGUST 4, 2009
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CLAIM AGAINST THE CITY BY HARTFORD INSURANCE COMPANY
CAROLYN lEHR, CITY MANAGER
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RECOMMENDATION Reject the claim and direct staff to notify the claimant. BACKGROUND The claimant's subrogation attorney, on behalf of the Hartford Insurance Company, alleges the City's water main ruptured causing extensive water damage to their insured's property in the amount of $296,531.83. The incident reportedly occurred on March 1, 2008 and the claim was filed on February 25, 2009. The City's Claims Administrator, Carl Warren and Company, has reviewed the claim and advised the City to reject the claim. Carl Warren opined that the City does not have any liability for the claimant's damages.
Attachment: 1) Claim
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Feb. 25. 2009 3:17PM
No. 5804
P. 2
BAUMAN LOEWE WITT & MAxWELL
}I. (pmfessitmaC£imitla£itl6iRty Cmnpany
Mark C. Bauman (480) 502-4664 Licensed In AZ and CA
mbaym8!J@bIw!awflrm,gom FilII No.: 3001-1397
February 25, 2009
RECEIVED
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City ofRancho Palos Verdes Office ofthe City Manager Rancho Palos Verdes City Hall 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Fax: (310) 544-5291 Re:
OF RANCHO PALOS VERDES
(:!d;
FEB 25 200~
- ClTY CLERK'S OFFICE
Our CHent: Hartford Insurance Hartford Insured: lioward P. Towle, Trustee Hartford Claim No.: • • • • • • • • • Insuring Entity: Hartford Casualty ~ Company Date ofLoss: 03lQ!108 Loss Location: UlDcho Palos Verdes, CA
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II.
~QTItE
OF CLAIM AGAINST CIIIUF RANCHO EALOS VERDi
To Whom It May Concern:
... .Rancho Palos Ve:l'des, California (the "loss"). Hartford is the insurer for Howard P. Towle, Trustee. Mr. Towle sustained extensive damage to its inventory stock as a result ofa water main break which OCCU1'Ied or about March 1. 2008. The following is our client's Notice of Claim against the City of Rancho Palos Verdes. TilEr Is q tkmd beJng wadI(. fpc w1IfP8l1$atlea for inJuries d!! to the aW q(ll.an£ho Palos Yel';'es'a negligence. EgilKm to satisfY HdaM's demgnri willreful' In li!h:.ation. This Notice of Claim is intended to comply with California Government Code §§ 900 et seq.• 910 et seq., 911 et seq., and 945 et seq. Pursuant to California Government Code § 910.8. please advise this writer immediately if there are any deficie.ncies, defects 01' other omissions in this Notice. Otherwise, it will be asswned this Notice it! in compliance with the appropriate codes, statutes, and regulations.
8766 E. Bel! Road, Suite 204 •Scottsdale, Arizona 86260 Telephone (480) 502-4654· Fax (480) 602-4774
Pe' its subrogation rights with respect to the loss that oeemed on March I, 2008 ~
Our :tixm. has been retained by Hartford casualty Insurance Co.m.pqny ("Hartford") to
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Feb. 25. 2009 3:17PM
city ofRancho PalO$ Verdes February 25,2009 Page 2
No. 5804
P. 3
1.
,Qaimlll1t'uupne and addresS.
Hartford CBSualty Insurance Company, individually and as subxog~ of its insured Boward P. Towle. Trustee~ clo Mark C. Bauman, Bauman Loewe Witt & Maxwell. 8765 East Bell Road, Suite 204. Scottsdale. Arizon!t 85260, (480) 5024664.
2.
AddresS at !rhich Claimant desires noUg to be sent.
Mark C. Bauman, Bauman Lpewe Witt & Maxwell, 8765 East Bell Road, Suite 204, Scottsdale, Arizona, 85260
3.
Datt. pISS' and cir£!!p!!ti!nee§ urthe 0l(cutrn!Se giyJng rise to tbe eJa!m.
On or about March I, 2008, a water main owned and operated by Cal Water, at the request ofthe City. failed, flooding the property referenced above..
4. General dllBcriptj0J gfdamages.
The water main failure caused exte.nsive flooding and watar da.tn.age to the :residence. Hartford has or will incur damages of $296.351.83 and therefore makes this offer to settIe the claim for $296,531.83.
5.
Amount of gAim.
Again, the amount claimed by Hartford is expected to reacblexceed $296,351.83•• This claim would I!!! be a limited civil case. Hartford:is still in the process of adjusting this claim. Once that has been completed~ we will compile all of the payments iSSUed. and provide you a summa.ry ofsame. along with all supporting documents.
This Notice of Claim is provided to you in triplicate (one original and two copies). It is requested that an endorsed copy be provided to Bauman Loewe Witt & Maxwel1$ Attn: Mark C. Bauman, Bauman Loewe Witt & Maxwell~ 8765 East Bell Road, Suite 204, Scottsdale, Arizona, 85260. in the self-addressed return envelope.
Best :regards.
/Vv(,-~,-"
Mark C. Bauman For the Finn
MCB:o Enel.
'1\llal1tonl\ll...onI P. Tmslio\Ct.. a 1'l!:o\CI\1o!PY 1I11lllt.d9v
8785 E. Bell Road, Suite 204 • Soottsdal~, Arizona 85260 Telephone (480) 602-4664' Fax (480) 502-4774
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