HomeMy WebLinkAboutCC 6 FAIR RESPON'S ACT 12-02-85A CONSENT CALENDAR
NO. 6
12-2-85
Inter- Corn
: DECEHBER 2, 1985
TO:
FROM:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
WILLIAN A. HUSTON, CITY MANAGER
RESOLUTION IN SUPPORT OF THE 'FAIR RESPONSIBILITY ACT OF 1986'
RECOmmENDATION:
That the City Council adopt the attached resolution in support of the "Fair
Responsibility Act of 1986."
DISCUSSION:
The State Legislature has failed again to pass legislation, S8 75, intended
to alleviate the effect of the present joint and several liability law. This
law, commonly referred to as the "deep pocket doctrine," has cost public
agencies and the private sector millions of dollars in judgements that
otherwise would not have occurred. This doctrine has also created a crisis
for public agencies because of the escalating insurance premiums and, in some
cases, an inability to obtain insurance at any cost.
The "Fair Responsibility Act of 1986" is in the process of qualifying for the
June, 1986 ballot. The Act would implement the provisions of. SB 75 which the
Tustin City Council has endorsed. To date, numerous public and private
organizations have endorsed the Act. The only organized opposition to the
Act is the Trial Lawyers Association.
William A. Huston
City Manager
WAH :ih
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RESOLUTION NO. 85-122
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN, CALIFORNIA, ENDORSING
THE "FAIR RESPONSIBILITY ACT OF 1986
WHEREAS, the present joint and several liability law, also known as
the "Deep Pocket Doctrine," has unfairly cost the cities of California mil-
lions of dollars in court judgments, settlements, legal costs, skyrocketing.
Insurance premiums, and difficulty in obtaining adequate liability insurance
coverage; and
WHEREAS, this same doctrine has also cost other governmental bodies,
business firms and professionals many millions of dollars; and
WHEREAS, ultimately this cost is unfairly borne by the taxpayers and
consumers of California; and
WHEREAS, many cities, other governmental bodies, business firms and
~rofessionals are selected as defendants in lawsuits merely because of their
)erceived assets or insurance and often are found only fractionally at fault
but must pay most or all of the judgment because the defendants most at fault
cannot pay; and
WHEREAS, the cost of this is unfairly borne by the taxpayers and
consumers of California; and
WHEREAS, the "Fair Responsibility Act of 1986" is an initiative
measure that would give the voters of California an opportunity to reform the
Inequities and injustices of the "Deep Pocket Doctrine" by holding liability
lawsuit defendants financially liable in closer proportion to their degree of
fault,
NOW, THEREFORE, the City Council of the City of Tustin, California,
hereby endorses the "Fair Responsibility Act of 1986" to relieve the financial
strain imposed on local government and its taxpayers.
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Tustin, California, on December 2, 1985.
MAYOR
CITY CLERK