01-17-2006 - Mercury Insurance vs. City of West Covina0 City of West Covina
MEMORANDUM
TO: Andrew G. Pasmant, City Manager
and City Council
AGENDA
FROM: Erin Patricia Hoppe ITEM NO. D-2b
Risk Manager
DATE January 17, 2006
SUBJECT: MERCURY INSURANCE VS. CITY OF WEST COVINA
RECOMMENDATION:
It is recommended that the subrogation damage claim of Mercury Insurance be denied and the
claimant be so notified.
DISCUSSION:
This claim arises from allegations that the City failed to properly maintain the roadway thereby
creating a dangerous condition. Claimant, Mercury Insurance, provides automobile insurance
coverage for Merchant Parvez. Mercury Insurance alleges that their insured's vehicle sustained
damage when the vehicle allegedly struck uneven pavement at the driveway entrance to a local
business. Mercury Insurance alleges that there were no barricades or warning signs. Mercury
Insurance is seeking to recover damages in the amount of $667.13.
Investigation by the Public Works Department does not substantiate liability on the part of the City.
This accident occurred near the intersection of Valley Boulevard and Nogales. This location is part
of the Alameda Corridor — East (ACE) project for construction of the underpass at Nogales and
Valley. Since the damage is directly related to construction of the Alameda Corridor, the claim has
been tendered to ACE for further handling.
After a review of the investigation in this matter, staff and the City's claims administrator, Ward
North America, Inc., determined the City was not negligent and recommend denial.
As you are aware, since all claims should be considered potential lawsuits, it is requested that all
Councilmembers refrain from making specific public comments so as not to prejudice any claim.
Specific questions should be referred to the City Attorney.
FISCAL IMPACT:
Mercury Insurance is seeking damages in the amount of $667.13 which staff is recommending be
denied.
Prepared by:
Uri
Debbie Dominguez ? 1
77
Safety & Claims Manager
Reviewed & Approved by:
Erin Patricia Hoppe
Risk Manager