HomeMy WebLinkAboutCC 4 SETTLEMENT CALEY 4-7-80DATE: April 1, 1980
CONSENT CALENDAR
· 4~-7780
Inter-Corn
TO: Honorable Mayor and City Council
FROM: Roy Gonzales, Acting Personnel Director~-~
SUBJECT; Proposed Settlement - Richard Caley
Attached is a copy of a letter from Rick Secia of Kegel and Tobin who
is representing the City's interests in the matter of Richard Caley v.
City of Tustin.
As stated in the letter' Mr. CaleYwas a Police Officer who died of a
heart attack shortly after leaving the City. Because of the nature of
his illness, heart disease, his death is presumed to be job-related
under Labor Code section 3212.
Dr. Trostler, who reviewed the files at our request, recommended that
any liability be apportioned on a year for year basis from Mr. Caley's
date of hire with Tustin. As a result, the proposed settlement of $30,000
would be split between the State Compensation Insurance Fund, the City
and the County of Orange, with the City share being 36.66% or $10,998.
While the $30,000 figure appears high, the maximum benefit in such
cases is $50,000. The City's portion of this settlement would release
us from any future claim on behalf of Mr. Caley or his survivors.
Mr. Caley's widow is willing to settle the matter for the lower figure
rather than take it to trial, involving further delay, legal fees and
personal suffering.
RECOMMENDATION
It would appear that the proposed settlement is in the best interests
of all parties involved, and it is recommended that the City accept the
terms of the settlement as proposed and authorize the payment of $10,998
as outlined by Mr. Secia.
LOS ANGELES. CAUFORNIA 90005
611 SOUTH ~,HA'I-TO pi.ACE
TELEPHONE; (213) 380-3880
JO~N J. TOBIN
STUART J* LIEBMAN
JOSEPH L. BOWLE~
CARL G. POWELL
MICHAEL A. INGLER
ONTARIO. CA. 91762
1063 W. 6TH ST. #202
TELEPHONE (714) 98~'540t
JOHN J. TOBIN
~J~WRF. N~E S MENDE~OHN
KEGEL & TOBIN
A'I-rORN£YS AT LAW
REPLY TO: SANTA ANA OFFICE
March 20, 1980
SANTA ANA. CA. 92702
P.O; BC, X 1498
640 N. TUSTIN AVE.- #202
TELEPHONE (714) 83,4-186
ROBERT A. KEGEL
JOHN C. MARTIN
CLARK 8UR-CON
JOHN G~ NE'WPORT
VEN'FUI=~.A. CA~ 93003
260 MAPI-£ COURT. #245
'IEEE'PHONE (805) 644-22
Bierly & Associates
1633 East Fourth 'Street, Suite 238
Santa Ana, California 92701
Attention: Mindy Peck
RE:
Richard Caley (dec.) v. City of Tustin
WCAB NO: 77 ANA 77143
FILE NO: OT44-77-0014
Dear Ms. Peck:
The above-captioned matter came on for hearing on the settlement
conference calendar on March 19, '1980 before Judge Jensen. The
widow/applicant was present and represented by Mr. Gebler and
your interests were represented by the undersigned. Also present
was Mr. Langton of Stat~ Compensation Insurance Fund, the former
carrier for the City of Tustin, and Mr. Gaylord who appeared on
behalf of the County of Orange.
As you will recall, we. obtained a review and evaluation of all
of the decedent's medical records by Dr. Trostler who, unfor-
tunately, found Mr. Caley's death to be the result of coronary
artery disease which he found to be related to the stress and
strain of his employment as a police officer and investigator.
At the hearing, Mr. Langton of State Fund produced a medical
report by Dr. Padova which indicated that Mr. Caley's heart
disease did cause his death but that this disease process was
related to non-industrial factors. As you know, this case falls
under the presumption of Labor Code §3212 which states that all
safety officers inflicted with heart disease is presumed to be
caused by the stress and strain of employment.
-- As you also will recall, the applicant's attorney made a demand
of $30,000 prior to our obtaining the report of Dr. Trostler.
Because there'is an issue of partial dependancy which could
reduce the overall exposure of the defendants, the applicant's
attorney was still willing to recommend the $30,000 figure
in spite of the fact that the defendants had a compensable
report by Dr. Trostler. While we did not recommend our pro-rata
Page Two
Caley v. City of Tustin
March 20, 1980
share of the $30,000 settlement prior to our obtaining Dr. Trostler's
report, we certainly do recommend contribution on a time of
exposure basis now that we do have a compensable report as, if
this case were'tried, it would most certainly be found to be an
industrially related death.
'Accordingly, as the continuous trauma is for a 60 month or five
year period, with the City of Tustin, legally self-insured, having
22 months out of the total period of employment, the city has
36.66% exposure in this case. State Fund, which has the larger
exposure, has 58.33%. The balance of the liability rests with
the County of Orange Which has three months of employment or
5%.
DISPOSITION:
Thirty days to submit compromise and release for approval.
In summary, we would recommend a settlement of this case in the
sum of $10,998 or 36.66% of the total settlement of $30,000. State
Compensation Insurance Fund has agreed to pay $17,502 or 58.33% of
the overall exposure. Finally, the County of Orange, self-insured,
will contribute $1,500 Or 5% of the overall settlement.
Please advise us at your earliest convenience whether we have
your authority to finalize this settlement. The settlement
itself would be done by three seperate compromise and releases
having an aggregate sum of $30,000.00.
If you have any questions or comments, please feel free to
contact us.
Very truly yours,
KEGEL & TOBIN
A Professional Corporation
RICK SECIA
cc: City of Tustin