HomeMy WebLinkAboutAgenda - 10-06-2009 - 4fORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 6, 2009
Action Agenda
Item No. G~- ' -F'
SUBJECT: Authorization for the County Manager to Approve the Settlement of Claims
and/or Liti ation
DEPARTMENT: County Attorney PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
None
INFORMATION CONTACT:
John Roberts, 245-2318
PURPOSE: To consider authorizing the County Manager to approve minor claims or litigation
up to the same amount authorized in the annual County budget ordinance for contract approval
by the Manager (currently $25,000).
BACKGROUND: It is the current policy of the Board that only the Board of County
Commissioners may settle litigation or claims. Under North Carolina Law, Lee v. Wake County,
165 N.C. App. 154 (2004), the County Manager has the "apparent authority" to settle any claim
against the County and can legally bind the County to settlements, regardless of amount. The
Court based its ruling on the fact that a County has statutory authority to engage in certain acts
and an appropriate agent, such as the County Manager, will consequently have, to a third party,
the apparent authority to carry out those statutorily authorized acts and bind the County whether
or not he or she, as the agent, is authorized to do so by the Board. This case makes clear that
the County Manager can bind the County to any settlement.
Often during mediation regarding Workers' Compensation cases, some small settlement amount
is proposed that, if accepted, would result in dispensing with at least one claim in any potential
litigation. Recently, the County missed just such an opportunity to settle a potential claim for
several hundred dollars because it was proposed on short notice and no one authorized to settle
small amounts would be present or available. Also, in some more complex mediation situations,
an amount will be tentatively agreed upon but the outside party will want an immediate answer
on whether the offer is accepted. Because the Board cannot be convened immediately or even
on very short notice to deal with these situations and answer these questions, opportunities to
settle claims are sometimes lost.
Rather than lose these opportunities to avoid more costly and time consuming litigation, it may
be appropriate to have a single individual with the official authorization to enter these settlement
agreements. That individual should be someone who has the time to attend mediations or
settlement discussions or, if not in attendance, someone who can be easily reached by
telephone regardless of the time of day.
FINANCIAL IMPACT: None.
RECOMMENDATION(S): The County Attorney recommends that the Board authorize the
County Manager to settle claims and/or litigation up to the same amount authorized in the
annual County budget ordinance for contract approval by the Manager (currently $25,000).