2021/10/13 Council Agenda Packet

E EVERETT Project title: Settlement Agreement and Release of All Claims for Michael W. Weaver Worker's Compensation Claim City Council Agenda Item Cover Sheet Council Bill # Agenda dates requested: October 13, 2021 Briefing Proposed action Consent 10/13/21 Action Ordinance Public hearing Yes x No Budget amendment: Yes x No PowerPoint presentation: Yes x No Attachments: Settlement Agreement Exhibit A Department(s) involved: Legal, HR Contact person: David Hall Kandy Bartlett Phone number: 425-257-8706 Email: Kbartlett@everettwa.gov Dhall@everettwa.gov Initialed by: Department head Administration Council President Consideration: Project: Partner/Supplier: NA Authorize the Mayor to sign the Settlement Agreement and Release of All Claims between the Weavers and the City of Everett Settlement Agreement for Worker's Compensation Claim # SH28667 Preceding action: NA Fund: Self -Insured Worker's Compensation Fund 503 Fiscal summary statement: The settlement is for $1,200,000 and $250. Per the agreement, the payment will be made in two parts. The City's excess insurance carrier will be responsible for all amounts above the City's $750,000 self -insured retention for this claim. Project summary statement: This worker's compensation claim involves a former employee, who filed a worker's compensation claim in 2011. The claim was ultimately denied. In 2014, the employee filed a second claim as the medical condition had significantly worsened. The Department of Labor and Industries and the City contended the second application for benefits was barred by the legal theories of collateral estoppel and res judicata. The matter went on to the Washington State Supreme Court of Appeals. The Court ruled that the common law application of res judicata and collateral estoppel do not bar a worker from filing a new claim despite prior denial of the same claim. The City then appealed to the Washington State Supreme Court given this controversial outcome. The Supreme Court issued its opinion in late 2019, siding with the former employee. With outside counsel, the City's legal and HR teams considered the expense and risk of further litigation and what would best protect the City from future claim exposure in negotiating the terms of the Settlement Agreement. Recommendation (exact action requested of Council): Authorize the Mayor to sign the Settlement Agreement between the City of Everett and Michael E. Weaver and Amy Weaver.