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HomeMy WebLinkAboutNB 2 KURAS SETTLEMENT 07-06-81~TE: June 24, 1981 NEW BUSINESS 7-6-81 NO. 2 Inter-Corn FROM: SUBJECT: HONORABLE MAYOR A~D CITY COUNCIL CHABnP-q ~HAYER, INTERIM CITY ADMINISTRATOR SE~]T.w~IE~qT - NANCY KD/~AS REC~TION: City Council accept the settlement for Nancy Kuras in the amount of $8,850.00 and authorize the Interim City Manager to execute the comprc~ise and release agreements between Nancy Kuras and the City of Tustin. Nancy Kuras was a crossing guard at First and "B" streets when struck in the cross walk while cn duty in 1979. Mrs. Kuras was struck by an off-duty police officer from Newport Beach in pursuit of a suspected burglar from the City of Irvine. As indicated by Roy Gonzales' report, we believe that we can offset this amount through further negotiation with the off-duty officer's insurance company to offset the actual cost to the City for Nancy Kuras. FISCAL IMPACT: $8,850.00. Potential recovery of $5,850.00 due to third party subrogation and a potential recovery of that amount frcm the third party's insurance company. DATE: TO: FROM: 5 UBJ ECT: June 23, 1981 Inter-eom Charles Thayer, Interim City Administrator Roy Gonzales, Personnel Director Settlement - Nancy Kuras Attached is a copy of a request for settlement authority for the Nancy Kuras case in the amount of $8,850. This is a case where there is no question of causation or disability, and the proposed settlement is on the low side of the range suggested by the applicant's attorney. Since this case involves a third-party subrogation, we should be able to recover the majority of the settlement from the insurance company. The actual cost of the settlement should be no more than $3,000. I would recommend that the City accept the proposed settlement and authorize execution of the Compromise and Release with the stipulation that the subrogation issue be pursued to insure the maximum recovery from the insurance company. I would suggest this matter be put on the 7/6/81 Council Agenda. Roy Gonzales - Personnel Director Attachment CDS of California 5400 Orange Avenue, Suite 120 Cypress, California 90630 Attention: Mary Hutcherson RE: June 16, 1981 Nancy Kuras v. City of Tustin WCAB NO: 79 ANA 94863 FILE NO: N/A Dear Ms. Hutcherson: The above-captioned matter came on for hearing on the trial calendar at the WCAB in Santa Ana on June 9, 1981 before Judge O'Malley. The applicant was present and represented by her attorney, David Tonti, and your interests and those of your client were represented by the undersigned. As you will recall,, the applicant's attorney had made several demands for a compromise and release of this case varying from $7,500 to $18,000. There is very little dispute as to permanent disability based upon the report of Dr. Robert McAllister who served as the agreed medical examiner in this case. Dr. McAllister found the applicant to have rather substantial disability concerning her lower extremities and his report, after modification for age and occupation, rated 38%. We do note that the applicant had been paid temporary disability at the minimum rate of $49 per week. However, there is no indication as to the applicant's actual earnings other than what has been alleged. The applicant alleged $2.90 per hour, four and one-half hours per day for five days each week. This would produce a weekly wage of $65.75. Two-thirds of this amount produced a rate of $43.84 for permanent disability only. Again, the applicant's temporary disability rate does appear to be the minimum amount of $49 per week. We had previously believed that the applicant was entitled to the minimum rate of permanent disability as well. However, assuming that the allegation of earnings is correct, tile permanent disability rate would be $43.84. This rate multiplied by 168.75 weeks, the Page Two Kuras v. City of Tustin June 16, 1981 period that it would take to pay 38% permanent disability, produces a total figure of temporary disability of $7,396.31. As Dr. McAllister found the applicant to be in need of future medical care including the possibility of surgery, although this possibility was remote, we felt that an overall settlement of $8,500 plus unpaid medical- legal costs of $350 would be an appropriate disposition of the compensation aspect of this case. Accordingly, we recommend this figure to you for the City's consideration. DISPOSITION: Twenty days to submit compromise and release. As there appears to be rather good liability in the third party case, it appears that the City will be in a rather secure position to recover all or a good part of its lien. Accordingly, we do recommend this figure to you for a compromise and release of the matter. If you have any contrary information with regard to the applicant's earnings, please advise us at your earliest convenience. We will look forward t~ hearing from you with regard to our authority to proceed with this settlement. If you have any questions or comments, please feel free to contact us. Very truly yours, KEGEL, TOBIN & HAMRICK RICK SECIA, ESQ. RS/jr cc:~ty of Tustin P.S. - We are enclosing, the bill of Dr. Edwin Lowd in the sum of $350 which is the applicant's only medical-legal expense. Assuming that this is added to the compromise figure, the gross amount of the settlement would be $8,850. However, the applicant's attorney advised us that this bill may have been paid by the applicant's attorney in the third party case as a part of that action. Page Three Kuras v. City of Tustin June 16, 1981 Mr. Tonti indicated that he would contact the applicant's other attorney who is handling the third party matter and advise us whether the bill is unpaid or whether or not it has already been taken care of in the third party matter. We will advise you as soon as we have obtained this information from Mr. Tonti. However, we do feel that the bill was probably payable as a medical-legal expense in the compensation aspect of the case as a report was filed and served with the WCAB as a medical-legal report. Rick Secia IIUNTINCFON 1511ACI[ I:A,x\II.Y ,~[!!I)IGJ\I. DATE: November 2~., 1980 PATIENT'S NAMK ____~ _U~r{33t Nancy___ 10-27-80 L)r%hru~edic Evaluation 90620 90080 $350.00 TOTAL AN()/~N'I"DUE $350.00 Edwin Lowd, M.D. OrthOpt:dic.