passed ordinance

*Pay settlement of Laurie Balmuth’s property damage lawsuit for the sum of $110,000 involving the Portland Bureau of Environmental Services

infrastructure utilities
budget finance
claim settlement

Department: Risk Management
Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

This Ordinance settles a property damage lawsuit brought by Laurie Balmuth, resulting from a sewer release in northeast Portland.

Financial impacts

This legislation will have no impact on City revenue. Total cost to the City to settle the lawsuit is $110,000. The source of funding is the City’s Insurance and Claims Fund. All cost of the settlement is in the current fiscal year. This Ordinance does not amend the budget.

Community impacts

This Ordinance settles a lawsuit resulting from a sewer release involving the Portland Bureau of Environmental Services. No public involvement or input was sought regarding this Ordinance. The City Attorney’s Office and Risk Management have concluded that it is not appropriate to have public involvement in settlement negotiations regarding tort claims or lawsuits against the City. No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle a tort claim against the City of Portland.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: Laurie Balmuth, through attorney Bradley T. Crittenden, has filed a property damage lawsuit against the City for damages resulting from a sewer release involving the Portland Bureau of Environmental Services on September 12, 2018. The lawsuit has been investigated by Risk Management Services. The investigation indicates there is risk the City may be found liable. Therefore, in order to avoid the risk of an adverse jury award, we feel it is prudent to compromise the lawsuit at this time. Risk Management Services recommends the lawsuit be compromised for the total sum of $110,000, subject to the claimant providing the City with a release in a form to be approved by the City Attorney. NOW, THEREFORE, the Council directs: The Mayor and the Auditor are hereby authorized to draw and deliver a check in the amount of $110,000 made payable to Chenoweth Law Group – Lawyer Trust Account. Risk Management Services will execute a payment authorization in the amount set forth in sub-paragraph (a) above. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this property damage lawsuit; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

5 yea 0 nay