CC SR 20220607 H - Claim Against the City Lona Salvador
CITY COUNCIL MEETING DATE: 06/07/2022
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action regarding a claim against the City by Mercury
Insurance (insured Lona Salvador).
RECOMMENDED COUNCIL ACTION:
1) Reject the claim and direct Staff to notify the claimant, Mercury Insurance.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Teresa Takaoka, City Clerk
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Mercury Insurance claim (page A-1)
BACKGROUND AND DISCUSSION:
The City of Rancho Palos Verdes (City) is a member of the California Joint Powers
Insurance Authority (Authority), which provides risk management services and handles
any liability claims received by the City. Under the current practice, claims presented to
the City Clerk are forwarded by the Authority to a third-party claims administrator, Carl
Warren and Company (Carl Warren) for adjusting.
Carl Warren’s staff reviews each claim on its merits and contacts the City with any
requested action pertaining to the disposition of the claim. The City Clerk and the City
Attorney review each claim when received and work closely with Carl Warren throughout
the claims process.
1
Claimant:
On March 9, 2022, the City received a claim for damages from Mercury Insurance as
Subrogee for Lona Salvador. The claim was referred to Carl Warren for review and
investigation. The claimant’s insurance representative states that on November 16, 2021,
its client drove her vehicle over a pothole causing damage to two tires. The claim alleges
the City is at fault due to a lack of maintenance of the roadway.
Deposition:
Carl Warren has reviewed the claim and found that there is no liability for the as the City
did not have prior notice of the pothole and the first report of the pothole was on December
2, 2021. Carl Warren recommends denying the claim for damages.
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