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Settlement Authorization Policy
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DESCRIPTION: Authorization to adopt Settlement Authorization Policy |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorization for the Chief Executive Officer to implement the agency’s Settlement Authorization Policy (GEN13).
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ISSUE/BACKGROUND:
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The purpose of the policy is to delegate authority to negotiate and settle claims, of any type, brought by and against the RTA.
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DISCUSSION:
Currently, legal claims are either settled by the RTA’s third-party administrator or outside counsel upon review and approval of the General Counsel. The term “claims” as used herein includes but are not limited to the following: demands made for compensation or other relief in the course of an investigation or litigation, general liability/automobile liability matters, workers’ compensation matters, professional liability/errors and omissions cases, as well as constitutional and statutory causes of action. As currently practiced, the RTA Board of Commissioners has minimum insight relating to the settling of claims, particularly general liability/automobile liability matters. As a matter of best practice, information relating to claims should be compiled and presented to the Board of Commissioners to enable the Board of Commissioners to make informed fiscal and programmatic decisions as part of their legislative/oversight responsibilities.
The Settlement Authorization Policy grants authority to negotiate and settle claims on a case-by-case basis as delegated as follows:
(1) For settlements not in excess of $25,000 to the Chief Legal Officer; and
(2) For settlements of $25,000 or more but less than $100,000 to the Chief Executive Officer
The Chief Executive Officer shall report quarterly to the Board of Commissioners concerning all settlements made for less than $100,000.
Settlements of $100,000 or more shall be the sole province of the Board of Commissioners. Settlements submitted for consideration by the Board of Commissioners may be discussed in Executive Session as such matters involve prospective or pending litigation.
FINANCIAL IMPACT:
Adoption of the Settlement Authorization Policy has no direct impact on RTA’s expenditures and revenues.
NEXT STEPS:
The Settlement Authorization Policy shall become effective immediately upon approval by the Board of Commissioners. The Chief Legal Officer shall provide notice of the policy to all firms providing legal services to the RTA.
ATTACHMENTS:
1. Resolution
2. Settlement Authorization Policy
Prepared By: Tracy L. Tyler
Title: Chief Legal Officer
Reviewed By: Lona Edwards Hankins
Title: Chief Executive Officer
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
1/7/2025
Lona Hankins Date
Chief Executive Officer