City of Reno

Staff Report

Staff Report (For Possible Action): Approval and Authorization of Funding of Settlement of Lawsuit entitled Samantha Arias v. City of Reno, et al., Case No. CV16-02139 in the amount of $60,000. (Risk Management Fund)


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Recommendation and Proposed Motion

Recommendation:  Staff recommends Council approve settlement of the lawsuit entitled Samantha Arias v. City of Reno, et al., Case No. CV16-02139 in the amount of $60,000, approve and authorize funding of the payment of $60,000 to Plaintiff Samantha Arias, and authorize the City Attorney or designee to execute all documents required to effect settlement of the lawsuit.


Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: The Plaintiff brought suit for personal injury and property damages arising from a motor vehicle accident in which her vehicle was struck by a City vehicle.  Based on negotiations and analysis, staff recommends settling the case, including all claims, damages, attorney’s fees and costs, through the payment of $60,000 to the Plaintiff.


Discussion:  The lawsuit was filed October 18, 2016.  Trial is scheduled to commence February 26, 2018.  The potential exposure in the case includes an award of damages up to $100,000, plus (1) interest, (2) award of attorney’s fees and (3) litigation costs incurred by the Plaintiff, which costs could exceed $10,000.  After discovery was substantially complete, the parties engaged in good faith negotiation.  Based on a risk-benefit analysis, settlement in the amount of $60,000 is recommended.  The proposed settlement includes dismissal of the lawsuit with prejudice and receiving a release of all claims from the Plaintiff.


Financial Implications:  Funds for settlement are budgeted in the Risk Management Fund.


Legal Implications:  Settlement will fully resolve the pending lawsuit, in which the potential exposure could exceed the settlement amount, absolving the City of any future liability and ending the lawsuit.