HomeMy WebLinkAboutmin light commission 12/12/01 Exec
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Board of Selectmen/Light Commissioners
Executive Session Minutes of
December 12, 2001
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The Executive Session for the purpose of discussing litigation opened at 7:03:;þJnT S
Present were: Chairman Louis P. Amoruso; Clerk Michael W. McCue; Vice Chairman
Bradford E. Wills; and Selectmen David W. McCarter and Daniel Donovan. Also
present were Town Manager John O. D'Agostino and Attorneys Max Volterra and
Susan Jacobs.
The Larch case appeal decision was discussed within the Executive Session at 7:12
p.m.
Attorney Susan Jacobs advised the Board that John Larch refused to engage in
any settlement discussions and the Appeals Court affirmed the judgment entirely.
They had some criticism of Lenny Kesten, noting some claims had been waived. The
insurance company was deeply disappointed and shocked by the decision, although
Ms. Jacobs stated she and her partners were not, as it's difficult to overturn a jury
decision. She has been speaking with David Dowd of our insurance company, who
claims there was never any coverage for this claim. She believes that is not valid,
~ since they accepted the case and defended it-and now claim no coverage after
$1million has been awarded. The issue is now back wages, which they say is 25
months from the date Larch's contract ran out to the date of judgment. Our claim
is that everything he got was advance pay. We knew going into the situation that
litigation is dangerous. The insurance company has proposed that we share in the
cost of paying this judgment, with the Town paying approximately $119,000 for the
appellate counsel fees plus the pre-judgment wages and interest being born by
them. The insurance company never gave us warning that we would be on the hook,
and there was no prior discussion regarding what is back wages and what is
damages. She suggested it makes sense to take their proposal and pay this portion
of it and make them responsible for the balance. Kesten and Hoffman are in
discussion. $374,000 or $376,000 would be our responsibility with the insurance
company paying $625,000. The $1 million was written off last year from retained
earnings. Mr. Beliveau suggested it be paid prior to the end of the year. $169,000
is considered back wages. David Dowd feels he's made a proposal that's reasonable;
however, Town Manager D'Agostino suggested we try to get him to split the
$169,000. Commissioner Amoruso noted a 2/3, 1/3 split is not as bad as it could
have been on a $1 million settlement. Commissioner Donovan asked how much time
it will take to negotiate further. Ms. Jacobs stated she needs a decision tonight.
She said our options would be to not pay and have Larch chase us; to reach an
,'- agreement with the insurance company, reserving our rights and fighting about it;
or we pay and chase the insurance company. The $375,000. is what's on the table
Light Commissioners Executive Session Minutes of December 12, 2001
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!" now. Commissioner McCarter noted he was prepared to roll the dice when it
appeared to be a simple non-renewal and the insurance company was paying the bill.
The insurance company's total will amount t $638,000. It was suggested that if
there are future cases of this nature, it would be to our advantage to have our
Town Counsel represent us more actively. The difficulty is it's unusual to see
counsel fees awarded-which is on the insured--and they should have given us notice
of this. It was suggested that Ms. Jacobs sit in on the Ferguson case to keep us in
the loop. Ms. Jacobs has communicated our concerns to the insurance company as
to the way the case was handled.
Motion: To authorize up to $380,000 in payment to settle the case.
(Donovan-Amoruso)
Roll Call Vote: Donovan-aye; McCarter-aye; Wills-aye; Amoruso-aye; McCue-aye
5-0 Passes
It was the consensus of the Commissioners to have Susan Jacobs sit in on the
Ferguson case.
Motion: To adjourn the Executive Session and return to Open Session at 7:32
p.m. and return to open session
(McCue-Donovan)
r Roll Call Vote: McCarter - aye; Wills - aye; Donovan - aye; McCue - aye; Amoruso-
aye. All in favor Passes
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Signature of Clerk
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Date of Approval
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Light Commissioners Executive Session Minutes of December 12, 2001
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