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2J - <br />Indian River County, Florida <br />Memorandum <br />TO: Joseph A. Baird, County Administrator <br />THROUGH: Jason Brown, Director, OMB <br />FROM: Beth Martin, Risk Manager <br />DATE: April 13, 2016 <br />SUBJECT: Mediated Settlement; Otto Lenke <br />It is requested that the Board of County Commissioners consider the following Consent <br />Agenda item at their April 19, 2016 regular meeting. <br />Background <br />On March 29, 2016 the County Administrator reviewed and approved the $178,098.02 <br />settlement of the July 22, 2009 workers' compensation claim of fire fighter Otto Lenke, <br />who has been out of work since October, 2014. He has been accepted for Social Security <br />disability and Medicare. <br />On March 10, 2016 private mediation was held, and Mr. Lenke accepted the settlement <br />presented today. It includes a Medicare Set Aside of $220,162.00 which will be funded <br />with an annuity, $25,000.00 to Mr. Lenke, $16,783.73 in attorney's fees and $976.95 in <br />costs. <br />The proposed settlement will complete the County's $350,000.00 self-insured retention <br />for this claim, with approximately $80,000.00 to be paid by the excess insurance carrier, <br />Meadowbrook/Starr (MS). After lengthy discussions with MS, our defense counsel has <br />been advised by MS's counsel that the carrier will deny compensability, asserting that an <br />October, 2014 medical event constituted a new claim rather than an exacerbation of the <br />original claim. MS is willing, however, to negotiate a settlement rather than face a legal <br />challenge from the County, and those discussions are ongoing. Irrespective of the final <br />negotiation for reimbursement with MS, defense counsel, staff and the County <br />Administrator believe that it is in the best financial interest of the County to approve the <br />proposed settlement with Mr. Lenke. Therefore, staff recommends approval of the <br />proposed settlement, concluding the workers' compensation claim, and continuing <br />reimbursement negotiations with MS. <br />Recommendation <br />In keeping with administrative policy, staff now requests Board approval of this <br />settlement in the amount of $178,098.02. Payment will be made from the Self Insurance <br />Fund. <br />87 <br />