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Section
5.175 Authority to Make Settlements of Claims or Actions Initiated by the City and to Execute and Deliver Instruments.
5.176 Deposit of Funds.
5.177 Authority to Make Settlements of Certain Workers’ Compensation Claims Against the City.
5.177.1 Authority of the Director of Finance to Make Settlements of Certain Monetary Claims by the City.
5.178 Acceptance of Credit Card Charges and Imposition of Credit Card Usage Surcharge.
Sec. 5.173. Authority to Make Settlements of Claims or Actions Against the City. (Charter section 273.)
(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such claims and litigation, the City Attorney is authorized to pay, settle or compromise any monetary claim, legal action or judgment against the City, or any board, department, officer or employee thereof, for which the City is or may be ultimately liable, whenever such payment, settlement or compromise involves only the payment of money in an amount not exceeding Fifty Thousand Dollars ($50,000) per individual party or claimant and provided further that the total of all such payments, settlements or compromises resulting from a particular claim or case shall not exceed Fifty Thousand Dollars ($50,000). The Mayor may delegate approval authority over any or all such matters to the City Attorney.
(b) Subject only to the approval or disapproval of the Claims Board as set forth below, which shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to pay, settle or compromise any legal action or judgment against the City, or any board, department, officer or employee thereof, for which the City is or may be ultimately liable, whenever such payment, settlement or compromise involves only the payment of money in an amount exceeding Fifty Thousand Dollars ($50,000) but not exceeding One Hundred Thousand Dollars ($100,000), provided that no such payment, settlement or compromise shall exceed One Hundred Thousand Dollars ($100,000) per individual party or claimant and provided further that the total of all such payments, settlements or compromises of a particular case shall not exceed One Hundred Thousand Dollars ($100,000). The Claims Board shall be comprised of the Mayor as chair, the President of the Council, and the City Attorney, or their respective designees.
(c) The Council shall have the authority to approve or reject settlement of claims that involve only the payment of money damages exceeding Fifty Thousand Dollars ($50,000) and litigation and judgments that involve only the payment of money damages exceeding One Hundred Thousand Dollars ($100,000), all subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Claims Board shall make recommendations to the Council concerning the settlement of such monetary claims, litigation and judgments. In addition, the Council shall have the authority to approve or reject settlement of claims, litigation and judgments that do not involve only the payment or receipt of money, subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Council shall make client decisions with respect to settlement of all such claims and litigation.
(d) No payment, settlement or compromise under the provisions of this section shall be made unless both of the following conditions exist:
1. A proper claim or legal action has been filed, and
2. The City Attorney, upon investigation, finds conditions indicating liability on the part of the City or a board, department, officer or employee thereof.
(e) For the purpose of settling any claim, legal action or judgment under this section, the City Attorney is authorized to draw demands directly upon funds under the City Attorney’s control.
(f) The provisions of this section shall not affect the authority of the Proprietary Departments, the Ethics Commission, the Board of Fire and Police Pension Commissioners, the Board of Administration of the Los Angeles City Employees’ Retirement System, and the Board of Administration of the Water and Power Employees’ Retirement System, to approve or reject settlements of claims and litigation exclusively involving the policies and funds over which the Charter gives those boards control, as set forth in Section 273(a) of the Charter.
SECTION HISTORY
Based on Ord. No. 136,357.
Amended by: Title and text, Ord. No. 152,159, Eff. 5-10-79; Ord. No. 157,011, Eff. 9-24-82; Subsec. (a), Ord. No. 169,312, Eff. 2-3-94; Subsec. (a), Ord. No. 172,691, Eff. 8-8-99; Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00.
(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to settle or compromise any monetary claim or legal action initiated by the City of Los Angeles against any person, firm or corporation where the amount by which the claim or action is to be reduced does not exceed Fifty Thousand Dollars ($50,000). The Mayor may delegate approval authority over any or all such matters to the City Attorney.
(b) Subject only to the approval or disapproval of the Claims Board, which shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to settle or compromise any legal action initiated by the City of Los Angeles against any person, firm or corporation where the underlying claim or action is to be reduced by an amount exceeding Fifty Thousand Dollars ($50,000) but not exceeding One Hundred Thousand Dollars ($100,000).
(c) The Council shall have the authority to approve or reject settlements or compromises of any monetary claims by the City against any person, firm or corporation where the claim is to be reduced by an amount exceeding Fifty Thousand Dollars ($50,000) and legal actions initiated by the City against any person, firm or corporation where the underlying claim or action is to be reduced by an amount exceeding One Hundred Thousand Dollars ($100,000), all subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Claims Board shall make recommendations to the Council concerning the settlement of such monetary claims or legal actions initiated by the City. In addition, the Council shall have the authority to approve or reject settlements of claims or legal actions initiated by the City against any person, firm or corporation which do not involve only the receipt of money, subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Council shall make client decisions with respect to settlement of all such litigation.
(d) Where the claim or action involves damage to City property arising out of the ownership or operation of any vehicle, the amount to be accepted in compromise shall not be less than fifty percent (50%) of the total amount claimed by the City for such damage, exclusive of any amount for loss of use of any City vehicle, provided, however, that in such cases the City Attorney may waive any claim for loss of use. The amount so waived shall not be included in the computation of the amount by which the claim is to be reduced.
(e) The authority to settle or compromise claims or legal actions granted in this article shall include authority for the City Attorney to execute and deliver, or cause to be executed and delivered, any and all releases, covenants not to sue, dismissals, satisfactions of judgments and any other instruments in writing necessary or advisable to be executed and delivered in connection with the settlement or compromise of claims or legal actions by or against the City.
(f) The provisions of this section shall not affect the authority of the Proprietary Departments, the Ethics Commission, the Board of Fire and Police Pension Commissioners, the Board of Administration of the Los Angeles City Employees’ Retirement System, and the Board of Administration of the Water and Power Employees’ Retirement System, to approve or reject settlements of claims and litigation exclusively involving the policies and funds over which the Charter gives those boards control, as set forth in Section 273(a) of the Charter.
SECTION HISTORY
Based on Ord. No. 136,357.
Amended by: Title and Text. Ord. No. 152,159. Eff. 5-10-79; Ord. No. 157,011, Eff. 9-24-82; Subsec. (a), Ord. No. 169,312, Eff. 2-3-94; Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00.
(a) All funds received by the City Attorney or Director of Finance in settlement of claim or legal action which has been referred to the City Attorney or Director of Finance by another department, bureau or office of the City which maintains the matter referred on its records as an account receivable, shall be transmitted to such department, bureau or office for deposit.
(b) All funds received by the City Attorney or Director of Finance in settlement of a claim or legal action for which no account receivable has been established by another department, bureau or office of the City shall be deposited with the City Treasurer to the credit of Department Receipts.
SECTION HISTORY
Based on Ord. No. 136,357.
Amended by: Ord. No. 152,159, Eff. 5-10-79; Ord. No. 152,764, Eff. 9-16-79; Ord. No. 175,396, Eff. 9-21-03.
(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such litigation, the General Manager of the Personnel Department, or any employee who is the General Manager’s designee for such purpose, is authorized to pay, settle or compromise, either by stipulation with request for award or by compromise and release, any workers’ compensation claim except those claims for which an application for adjudication of claim has been filed with the Workers’ Compensation Appeals Board and as to which the Office of the City Attorney provides legal representation through its employees (“Litigated Claims”). As to such Litigated Claims, the City Attorney shall have sole authority, subject to such approvals as are required in this article, to pay, settle or compromise such claims. Each payment, settlement or compromise under the provisions of this section entered into by the General Manager of the Personnel Department or the General Manager’s designee shall comply with all of the following conditions:
(1) the amount to be paid shall not exceed a total of Fifty Thousand Dollars ($50,000), excluding the value of lifetime medical benefits;
(2) a proper claim and application shall have been filed within the appropriate time limitations; and,
(3) the General Manager of the Personnel Department, or the designee, must find conditions indicating a probable liability, conditional or absolute, on the part of the City.
(b) This section shall not affect the authority of the City Attorney, subject to the approvals required in this article, to pay, settle or compromise any claims, including workers’ compensation claims, brought by or against the City, and the City Attorney shall retain sole authority to represent the City in, and, subject to the approvals required in this article, to pay, settle or compromise, any workers’ compensation claim or claims, including those referred to in the foregoing paragraph, whenever the City Attorney determines that the significance of such claim or claims to the City so warrants and notifies the Personnel Department of that fact.
(c) Without limiting the authority granted by, or the effect of the provisions in, Subsections (a) and (b) of this Section, and subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such litigation, the City Attorney or the City Attorney’s designee for such purpose is authorized to pay, settle or compromise, either by stipulation with request for award or by compromise and release, any workers’ compensation claim for which an application for adjudication of claim has been filed with the Workers’ Compensation Appeals Board and as to which the Office of the City Attorney provides legal representation through its employees (“Litigated Claims”). Each payment, settlement or compromise under the provisions of this section entered into by the City Attorney or the City Attorney’s designee shall comply with all of the following conditions:
(1) The amount to be paid shall not exceed a total of Fifty Thousand Dollars ($50,000); provided, however, that Statutorily Mandated Payments shall not be included in computing the amount to be paid as an authorized settlement under this Subsection when there is no reasonable legal basis to challenge the payment, and no other authorization shall be required to enter into settlements to the extent that they include such Statutorily Mandated Payments. For purposes of this Subsection, Statutorily Mandated Payments include any amounts required by law to be paid as: (i) lifetime medical benefits, (ii) temporary disability payments, (iii) payments for medical treatment made directly to qualified providers, (iv) statutory death benefits after dependency is legally established, and (v) Permanent Disability (including life pension) payments for disability ratings of up to 99%;
(2) A proper claim and application shall have been filed within the appropriate time limitations; and,
(3) The City Attorney, or the City Attorney’s designee, must find conditions indicating a probable liability, conditional or absolute, on the part of the City and, with respect to Statutorily Mandated Payments, that there is no reasonable legal basis to challenge the payment.
SECTION HISTORY
Added by Ord. No. 170,977, Eff. 5-4-96.
Amended by Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00; Subsec. (c) added, Ord. No. 181,856, Eff. 9-26-11.
(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of certain litigation and claims, the Director of Finance, or any employee who is the Director’s designee for that purpose, is authorized to settle or compromise any monetary claim for payment due to the City that is administered by, or referred to, the Office of Finance for collection purposes pursuant to other provisions of this Code, except those claims that are referred to the Office of the City Attorney and for which the Office of the City Attorney provides legal representation through its employees (Litigated Claims). As to those Litigated Claims, the City Attorney shall have sole authority, subject to the approvals required in this article, to pay, settle or compromise those claims. The Director of Finance is further authorized to enter into releases of these approved settlements or compromises subject to approval as to form by the City Attorney. Each settlement or compromise under the provisions of this section entered into by the Director of Finance, or the Director’s designee, shall comply with all of the following conditions:
(1) the amount by which the City’s claim is to be reduced does not exceed a total of $50,000; and
(2) the Director of Finance, or the Director’s designee, must find and make a record of the conditions indicating that the settlement or compromise is in the best interests of the City.
(b) This section shall not affect the authority of the City Attorney, subject to the approvals required in this article, to pay, settle or compromise any litigation or claims brought by or against the City, and the City Attorney shall retain sole authority to represent the City in, and, subject to the approvals required in this article, to pay, settle or compromise any litigation, claim or claims, including those Litigated Claims referred to above, whenever the City Attorney determines that the significance of the litigation, claim or claims to the City so warrants.
SECTION HISTORY
Added by Ord. No. 175,396, Eff. 9-21-03.
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