Agenda

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County Attorney's Report 9. 6.

BCC Regular Meeting

Action

Meeting Date:	09/24/2020
Issue: Approval of a Proposed Settlement regarding the Notice of Claim for Tort Damages by Mark and Connie Schnackenberg
From:	CHARLES PEPPLER
Department:	County Attorney's Office
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Approval of a Proposed Settlement regarding the Notice of Claim for Tort Damages by Mark and Connie Schnackenberg.

That the Board approve the proposed settlement of payment of $150,000.00 to Mark and Connie Schnackenberg in exchange for execution of a general release of all claims. Everest National Insurance Company, the general liability carrier for Blue Arbor, Inc., will pay the settlement in its entirety.

BACKGROUND:

On September 26, 2019, Mr. Schnackenberg was operating his bicycle northbound in the bike lane on State Road 399 as it proceeded down the Bob Sikes Bridge into Gulf Breeze. He was wearing a bike helmet. A "Gator" 4-wheel utility vehicle being operated by John Gary Scheerer, who was a temporary employee working with Public Works under the Blue Arbor contract, was also traveling northbound on the downside of the Bob Sikes Bridge. He passed Mr. Schnackenberg in the bicycle lane, but at the bottom of the bridge, made a sudden right turn and stopped directly in Mr. Schnackenberg's path. Mr. Schnackenberg was unable to avoid colliding into the side of the ATV and he sustained substantial injuries to his neck, right arm and left knee.

The force of the collision was such that Mr. Schnackenberg's bicycle was a total loss and his bicycle helmet was severely damaged. Moreover, the vertebra in his neck were fractured, resulting in a multiple anterior cervical discectomy at the C5-6 level of his spine. Two days after the accident, surgery required the insertion of a titanium plate and screws in order to stabilize the fractured vertebra. An MRI conducted in January of 2020 showed a tear in the lateral meniscus of his left knee. Surgery to repair the meniscus may be necessary.

Mr. Schnackenberg's medical bills total over $132,000.00. He lost twelve weeks from his work as a TSA Agent and was forced to use sick leave hours for his absence from work. He has also had to give up cycling, which he normally did four days a week with some of his rides extending up to 30 miles on certain routes. His marriage has been affected by the extent of injuries.

As Mr. Scheerer was a loaned employee pursuant to the Blue Arbor labor contract, demand was made on Blue Arbor to provide indemnity and defense pursuant to the contract. Everest National Insurance Company, through its third-party administrator Sedgwick James, has provided indemnity and defense, and will be funding the settlement in its entirety. Although there could be an argument that Mr. Schnackenberg may have been riding too fast down the bridge, it is evident that Mr. Scheerer's actions were the primary cause of the accident. Due to the severity of the injuries to Mr. Schnackenberg and the effect on his marriage, a verdict could well exceed the Sovereign Immunity Cap of $200,000.00 per person for this accident, even if the jury were to assign some percentage of negligence to Mr. Schnackenberg. The proposed settlement of the tort claims of Mr. and Mrs. Schnackenberg appear to be reasonable. The settlement will be fully funded by Everest National as the general liability insurer for Blue Arbor.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

Ms. MaryJean Spano, adjuster with Sedgwick James, will prepare a general release naming the County and Blue Arbor.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
No file(s) attached.