279856 �
M�HITE - C�TV CLERK 2'�9855
PINK - FINANCE G I TY OF SA I NT PAU L COUIICIl
CANARV - DEPARTMENT File NO.
BLUE - MAYOR
Co cil Resolution
Presented By to A
Referred To Committee: Date
Out of Committee By Date
RESOLVED, that upon execution and delivery of a release
in full to the City of Saint Paul, the proper City officer s
are hereby authorized and directed to pay out of the Tort
Liability Fund, 09070-511-328, to Robins, Zelle, Larson and
Kaplan, in trust for Commercial Union Insurance Company, the
sum of $62,500.00 in full settlement of its claim for damages
arising out of the fire and explosion at the Commodore Hotel
on February 15, 1978.
COUNCILMEN
Yeas Nays � Requested by Department of:
Fletcher
�xe Galles [n Favor
Masanz
�� �
scheibel _ __ Against BY —
Tedesco
Wilson
FEg 17 1�3 Form Approv Ci y Attorne
Adopted by� Council: Date —
Certified P�: -ed Council cret BY
B' � /� ���
Approved . vor. Date i 8 1983 Approved�i for�bmi sion to Co il
By _ BY
PUBLISHED FEB 2 6 1983
. • _
+ • KUEPPERS KUEPPERS VON FELDT HZ SALMEN �����
> >
ATTORNEYS AT LAW
12b0 NORTHERN FEDERAL BUILDING
WABASHA AT SIXTIi STREET
ST. PAUL, MINNESOTA 55102
FRED A. KUEPPERS TELEPHONE
FRED A.KUEPPERS,7R. AREA CODE 612
C.E.VON FELDT 228-1100
T. ]AY SALMEN Januar 25� 1983
FRANK E.VILLAUME III y
JOAN M.HACKEL
R[CHARD C.SALMEN
NANCY L. PONTO
Honorable Members
of the Saint Paul City Council
Gentlemen:
On October 18, 1982 I was appointed special counsel to repre-
sent the City of Saint Paul in continuing the prosecution of
its appeal from an adverse judgment in the trial of the Commo-
dore Hotel fire and explosion case.
Some of you will recall that the trial court found the City of
Saint Paul' s inspection at the time of instal.lation to be neg-
ligent and a contributing factor to the ultimate fire and ex-
plosion, which injured numerous persons and caused extensive
damage to the hotel.
The City' s liability was found to be 10�. Commercial Union
Insurance Company provided the fire and extended coverage for
Summit Court, Inc. , the owner of the hotel. Payment under its
policy amounted to $978, 400.00 and the City' s share was $97,840. 00.
The City has appealed from this judgment. Should the City have
been unsuccessful in its appeal, it would have owed not only this
amount but interest at a rate of approximately 12$ from the date
of judgment (June, 1981) until the appeal is decided, plus the
likelihood of pre-judgment interest at a rate of 6� from the
time of payment (August, 1979) until the jud�:nent date.
I have reached a settlement with counsel for Commercial Union
in the amount of $62, 500. 00. I have consulted with City Attor-
ney, Ed Starr, and he finds the terms of the agreement accept-
able. Full releases executed on behalf of Commercial Union have
already been obtained.
I respectfully ask that you approve the settlement and autho-
rize payment in the amount of $62, 500. 00.
Yours truly,
KUEPPERS, KUEPPERS, VON FELDT
& SALMEN
..r—�
gy i- ...�
k E. Villaume, III
FEV/mjr
�- . , . 2'7985�
�`; 'r ,� C�ITY OF SAINT PAUL
- • OFFIC� OF THIt: CITY COIINCIL
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. February 10, 1983
CO (�/iM (TT � E REPORT
TO = Sa�n� Pau i City Cour�ci!
J F�� M = C o rn rn i t�t e e O h Finance, Management � Personnel
CN A I R James Scheibel
1. Approval of minutes from meeting held February 3, 198�,����,�
2. Resolution to increase the 1983 Community Services budget by $1,527,644
in grant expenditures. ;��
3. Resolution to transfer $114,500 from 1983 MSA Contingency Fund to
Railroad Island sewer project
4. Resolution to increase the Division of bianpower Programs estimated
revenue and expenditure budget for the CETA program from $1,899,599
to $2,895,217. �i�"� .
5. Resolution approving the payment of $250.00 to the State for the purchase
of property in Irvine's Second Addition to St. Paul for a storm sewer.�.�C€Q�
6. Resolution to transfer $5,200.00 from General Government Accounts,
Contingent Reserve Specified, and Operating Transfer Out to Appeals
and Special Services and Fees. �,��••��•en��.-..:�+--�s-.�
` NOT ON PREPARED AGENDA:
\ 7. Resolution approving a settlement reached between the City and Commercial
Union Insurance Co. of claim for dama es arising out of fire and .
explosion at the Commodore Hotel. /'/�� Q\
l 7)
8. Resolution setting date of hearing for Ma.rch 15, 1983, to consider the
level of street maintenance to be performed during 1983.
-„� n-6,4G w4 �h
C1TY HALL SEVENTH FLOOR SAINT PAUL, bi1NNFSOTA SSI02
•��.„
. �a-,a-��
EPARTt�1ENT � � �
Edward P. Starr �� ���
�'ONTACT
5121 PHONE �
January 26, 1983 DATE �v�� �
(Routing and Explanation Sheet)
Assign Number for Routing Order (Clip All Locations for Mayoral Signature):
Department Director
City Attorney
l l� __
Finance and Management Services Director
2 City Clerk
Budget Director
i�hat Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):
Approval of settlement reached between City and Commercial Union Insurance
Company of claim for damages arising out of fire and explosion at the
Commodore Hotel.
Financial , Budgetary and Personnel Impacts Anticipated:
City' s potential liability on this claim is $97,840.00, plus interest �
from August 1979 until final disposition of appeal. Settlement has
been reached between attorneys for the City and Commercial Union pro-
viding for a pay-out of $62,500.00 in full settlement of this claim.
Funding Source and Fund Activity Nurr�er Charged or Credited:
09070-511-328
Attachments (List and Number all Attachments� :
Council Resolution and Letter to City Council from Frank E. Villaume III
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? X Yes No
Yes X No Insurance Required? Insurance Sufficient? Yes No
Yes X No Insurance Attached?
Revision of October, 1982
(See Reverse Side for 'Instructions)