08/19/1980 - City Council Special
00196
MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
AUGUST 19, 1980
The Eagan City Council met for a special meeting at the call of the Mayor in
the City Administrator's office on Tuesday, August 19, 19$0, at 6:00 p.m. All
members were present as were City Administrator Hedges, Police Chief DesLauriers
and City Attorney Hauge. The Mayor announced the topic of discussion was to con-
sider a proposed settlement concerning the companion actions entitled "Robert
Benford and Lori Benford vs. City of Eagan." Staff members indicated that they had
been discussing the actions with the attorneys for the two insurance companies,
Home Insurance Company and Midland Insurance Company, and a proposal for settlement
has now been made in the sum of $115,000 with $100,000 payable to Lori Benford
and her daughter and $15,000 to Robert Benford, Jr., and Robert Benford, Sr. It
was understood that the plaintiffs in each action have agreed to the settlement
terms but that the two insurance companies who have agreed to share in the settle-
ment equally have not acquired adequate commitment from the two companies yet to
complete the settlement. When the action started in 1976, the City Council asked
the insurance companies to inform it as to any proposed settlement and to acquire
an opinion from the Council as to the settlement terms.
City Attorney Hauge went through in some detail the proposed settlement and
the implications of the potential time involved in trying the case before a jury in
Dakota County, the potential implications of the claim for punitive damages, the
exposure as to liability regarding the facts and expected publicity during trial of
the case. Neither Mr. Hauge nor Mr. Hedges made a recommendation for settlement but
simply conveyed the information passed along from the attorneys for the insurance
companies. Chief DesLauriers recommended that the Council not approve the settle-
ment and recommended the insurance companies proceed with trial on the basis that
the Eagan patrolman had been vindicated before the Grand Jury in 1976. Each of
the members of the Council strongly felt that there was no liability on behalf of
the Police officers or the City and gave strong vocal support to the Police Depart-
ment members involved in the incident. There was also discussion concerning the
possibility of the City Council approving the settlement and the insurance company
proceeding to trial as to the legal implications including the responsibility of
the insurance companies regarding any excess jury award above the recommended
settlement by the Council. Councilmembers also discussed the strong possibility
of the finding of punitive damages which have resulted in a number of recent cases.
After considerable discussion, Egan moved, Wachter seconded the motion that the
City Council be on record recommending approval of- the proposed settlement with the
understanding that the City will not contribute towards the settlement, that the
two liability insurance carriers for the City will contribute sufficient funds to
cover the total proposed settlement of $115,000; that the Council's position is that
there was no wrongdoing by the patrolman in the incident, and that neither the
patrolman nor the City is liable for any damages for the alleged claims; and that
because of the possible punitive damages and damages in excess of the liability
carrier limits that it appears prudent to settle the case. All members voted
reluctantly in favor of the motion.
The special meeting adjourned at 6:40 p.m.
Ci Clerk