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BOO 7 f�a 4A The Board reviewed a Memorandum of October 12, 1998: TO: James E. Chandler, County Administrator THRU: Joseph Baird, Director, Office of Management & BudgeR FROM: Beth Jordan, Risk Manager t DATE: October 12, 1998 SUBJECT: Public Hearing-, Proposed Settlement; Workers' Compensation Claim of Stanley Hatfield Staff requests consideration of the following information at the October 27, 1998, regular meeting of the Board of County Commissioners. Backggroround Stanley Hatfield, a former employee of the Utilities' Wastewater division, has through his attorneys Vincent Lloyd, made a workers' compensation claim for injurious exposure to an entero virus in the workplace which began on June 14, 1994 and continued until January 10, 1997 when he went on approved medical leave. While our medical experts have advised that 10 to 20 million people in the U.S. have entero virus infections annually, under Florida's workers' compensation law Mr. Hatfield is able to conclude there is a causal relationship between his employment and his resultant cardiomyopathy with rheumatologic symptoms. ft On September 29, the staff Claims Revile CCommittee consisting of James Chandler, County Administrator, Will Collins, Deputy County Attorney, Joseph Baird, OMB Director, Don Hubbs, Utility Services Director, and I met with Philip Thompson, defense attorney with Roberts & Reynolds, PA, to discuss the pending litigation. Until mid-September, we were somewhat confident that the County could prevail on Mr. Hatfield's claim for permanent total disability benefits. At that time, however, the Social Security Administration approved disability benefits for him based upon much of the same evidence which was being oonsidered in a workers' compensation claim. As a result we believe the Judge of Compensation Claims who will hear this matter will be swayed by the Social Security derision and award benefits. The Claims Review Committee unanimously reoommiended settlement of this claim if agreement could be reached with Mr. Lloyd and if the County's excess insurer, the Florida League of Cities concurred. Both of these conditions have been met, and we recommend settlement of this claim. Mr. Thompson will be at the Board meeting to provide an overview of this claim and answer any questions. Recommendation Staff recommends the Board approve settlement of this wnrkers' compensation claim in the total amount of $225,000.00 all inclusive. The County's self-insured retention (SIR) for such claims is $150,000.00 with the reminder to be reimbursed to the County by the Florida League of Cities. Attorney Philip Thompson, with Roberts & Reynolds, P.A., the county's defense attorneys, advised that Mr. Hatfield became ill in 1994 with a heart muscle disease. He was also diagnosed with rheumatological problems in January, 1997. No risk other than Mr. Hatfield's employment could be found and all the experts agree he would have been exposed through his employment which could theoretically have caused his condition. County Administrator Chandler noted that the Claims Committee spent a great deal of time on this claim and seriously considered going to court. However, the Social Security Administration ruled that Mr. Hatfield was totally disabled which caused the Claims Committee to feel the evidence suggested that he was most likely exposed during his employment. OCTOBER 27, 1998 -34- • 0