Fiscal Note
The proceeds of this settlement, expected to be received sometime in 2010, will be deposited in the Landfill Remediation Fee Fund and will be used to help pay off remaining landfill debt and reduce future landfill remediation fees that are charged to property owners and paid as a component of the City's utility billing process.
Title
A Resolution Accepting a Proposed Settlement with the Sentry Insurance Company for Landfill Remediation Claims, Authorizing the Mayor and City Clerk to Sign Settlement Agreements and any Other Documents Necessary to Complete the Settlement, including Releases and Indemnifications, and Directing that Settlement Funds Be used to Reduce Future Remediation Fees.
Body
Background
The City of Madison operated a number of landfills for many years. As a result of closure of those landfills, the City has incurred, and will incur in the future, landfill remediation costs pursuant to closure orders from the Wisconsin Department of Natural Resources. The City’s best estimate is that those costs, from 1992 forward, could reach as much as $40 million.
There has been much litigation in Wisconsin over whether these costs are recoverable from insurance companies. In City of Edgerton v. General Casualty Co, 184 Wis. 2d 750, 517 N.W. 2d 463 (1994), the Wisconsin Supreme Court ruled that comprehensive general liability policies did not cover such costs as damages. Based upon that ruling, the City did not pursue any claims. However, in Johnson Controls, Inc. v. Employers Insurance of Wausau, 2003 WI 108, 264 Wis. 2d 60, 665 N.W. 2d 257 (2003), the Court reversed the City of Edgerton decision and found that insurance policies may provide such coverage.
By a resolution adopted May 17, 2005, RES No. 05-00459, Legislative File No. 00890, the City retained Attorney Ron Ragatz and the firm of DeWitt, Ross and Stevens to pursue any insurance claims that the City might have. That resolution authorized up to $150,000 in attorney’s fees and ...
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