The Five Greatest Liabilities Municipalities Face in North Carolina.

The Five Greatest Liabilities Municipalities Face in North

Carolina

1.Automobile wrecks

2.Premises Liability

3.Sewer Backups

4.Police

5.Employment

$15,659,234

$3,490,177 $3,833,621$2,510,462 $2,244,675

$-

$4,000,000

$8,000,000

$12,000,000

$16,000,000

Auto Liability

Sewer Backups

Premises

Police

Employm

ent

Total Dollars Paid

1/1/1999 – 9/30/2004

1. Automobile wrecks

• Automobile wrecks account for 52 % of the dollars paid on claims by the NCLM

• From January 1999 through September 2004, $15,659,234 has been spent on auto liability claims

Legal Standard

• Negligence

If an employee is:

1.Acting within the course and scope of his or her employment

And

2. Fails to exercise reasonable care in driving a car

And causes a car wreck

The Municipality is Liable

How can you protect yourself?

• Obtain a certified driving record from the Division of Motor Vehicles


• Establish an accident review board

-to determine a chargeable accident

-applicable to all levels of employees


• Implement a two (2) hit rule

-The employee gets a written reprimand after the first accident

-The employee loses driving privileges after the second accident

-Require the at fault employee to pay any loss deductible


• Implement a drug screen policy to be conducted after every accident

• Post accident testing will deter drug use on the job


As an alternative to revoking an employee’s driving privilege

• Require your employees to maintain their own liability insurance

• Their policy will be primary and your City’s will be excess

An ounce of prevention is worth a pound of cure!

2. Premises Liability

• Premises Liability Claims account for 18% of the total dollars paid by the NCLM

• From January 1999 through September 2004, $3,833,621 has be spent on premises claims

Premises Liability relates to all premises maintained by your

municipality

• It ranges from Sidewalks

• To athletic fields

• To rocks thrown from weed eaters and mowers hitting windshields

• To cutting phone lines while trenching

• To cars hitting potholes

Legal Standard

• Notice and reasonable care

1.If a municipality knows of a problem or a problem has existed for such a period of time it should have known

And2. The Municipality fails to exercise

reasonable care to fix the problem or warn the public.

And someone gets hurt

• You guessed it

The Municipality is Liable


• Have Public Works conduct routine inspections of city property

• Regular Inspections will help you identify problems and prevent injuries and therefore lawsuits


• Repair problems discovered in your routine inspections

OR

Place warning signs for the public

• Such as

-Caution Tape

• Cones

• Phosphorescent Paint


• Implement a 24 hour “on call” policy for after hour problems

• Identify problems quickly to help prevent injury, lawsuits, and save future manpower


3. Sewer Backup

• Sewer Backup Claims on average account for 12% of the total dollars paid by the NCLM

• From January 1999 throug4h September 2004, $3,490,177 has be spent on sewer backup claims

Causes

• Clogged lines from grease

Causes

• Clogged lines from objects

Causes

• Clogged lines from roots

• Sewer Backup claims have the same legal standard as premises claims . . . .

Legal Standard

• Notice and reasonable care

1.If a municipality knows of a problem or a problem has existed for such a period of time it should have known

And2. The Municipality fails to exercise

reasonable care to fix the problem or warn the public.


• Educate your municipality on backflow devices


• Investigate all backflow complaints immediately and take corrective action

• Once a problem is identified, give written notice to the citizen that they are required to install a backflow valve

• The average price for a backflow device is between $20 -$30.


• Enact a Backflow Ordinance-Many municipalities have backflow device requirements for their water system to prevent pollution of their water supply-A sewer backflow requirement will assist in limiting the number of sewer backups and therefore limit the number of sewer backup claims.


• Educate your Public Works Staff

– The League has an excellent sewer liability training video available in their library

– The video encourages a proactive approach to the management of your public utilities

– The League’s loss prevention staff will be glad to work with you in your problem areas or conduct the training for you


4. Police Liability

• Police Claims on average account for 9% of the total dollars paid by the NCLM

• From January 1999 through September 2004, $2,510,462 has be spent on police claims

Types of Claims

• Unlawful Arrest

-an arrest without probable cause

Types of Claims

• Excessive Force

-using unreasonable force in effectuating an arrest

Types of Claims

• Police Pursuits

-Allegations that the police were negligent in pursuing a criminal

Arrest and Excessive Force Claims


• Ensure you hire and maintain only qualified personnel

-Conduct criminal record checks and psychological profiles on all new

hires

-Require ongoing training, especially in the areas of probable cause and use of force


• Investigate Complaints

-Investigate all written complaints

-Maintain at least one trained Internal Affairs Investigator

-Place the subject officer on paid suspension

-Elicit the assistance from an outside agency

Proper Investigations will Ultimately Reduce your Liability Exposure

• Proper investigations serve several useful purposes

-Hold your officers accountable

-Send a message to your citizens

-Help identify deficiencies in your department

- Allows you to further focus your training

-Find the “bad apples”

Pursuit Claims

Pursuits cause more deaths in the line of duty than any other

law enforcement activity.


• Implement a Police Pursuit Policy

-Ensure your officers are aware of your policy

-Discipline violators

-Use in conjunction with Emergency Response Training

-Create a Pursuit Review Board

-Required by State Law


5. Employment Claims• Employment Claims

on average account for 8% of the total dollars paid by the NCLM

• From January 1999 through September 2004, $2,244,675 have been spent on employment claims

Major types of Claims

• Wrongful termination

• Discrimination

• Harassment

Wrongful Termination

Employee At Will

• Non Contract public employees are employees at will

• Employees at will can be fired for any reason or no reason but not for an illegal reason

• Illegal reasons include race, gender, age and disability

However

You Can Create a Property Right in Continued Employment for Your

Employees

Property Rights

• A property right is created by law or contract

• If a personnel policy is adopted by ordinance it can create a property right in continued employment

• A personnel policy resolution is the better course of action


-DO NOT adopt your personnel policy by ordinance

-Ordinances have the effect of law

-Adopt your personnel policy by resolution

-Resolutions do not have the effect of law

Personnel Policy Resolution

• Specify your employees are employees at will

• Require written documentation of all discipline

• Implement progressive discipline to include grounds for immediate dismissal

Do Not Rubber Stamp Evaluations

• It is extremely difficult to justify a termination for cause when the terminated employee has glowing evaluations.

• Most supervisors do not like to critique their employees.

• This practice can set your municipality up for an employment claim.

Discrimination and Harassment Claims


-Implement written anti discrimination and anti-harassment policies

-Document all complaints

-Investigate all complaints

-Discipline/terminate violators

In Summary

• The 5 greatest liabilities municipalities face can be significantly reduced by taking a proactive - common sense approach to the day to day operations of your town.

You can improve your city’s liability risk by remembering

An ounce of prevention is…?

Worth a pound of cure!

The Five Greatest Liabilities Municipalities Face in North Carolina.

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