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County Attorney's Report 16. 3.
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| BCC Regular Meeting |
Action |
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| RECOMMENDATION: |
Recommendation concerning Allen, Clarke et al. v. A.E. New, Jr., Inc., Caldwell and Associates, Inc. and Escambia County, Florida, Case No.: 2015 CA 000722, Escambia County Circuit Court and Bitco National Insurance Co., et al. v. A.E. New, Jr., Inc., Escambia County Fla., et al. (all plaintiffs in Case No. 2015 CA 000722), Case No.: 3:15-cv-00444-MCR/CJK, U.S. District Court, Northern District of Florida.
That the Board authorize Michael Dickey of the law firm of Barron and Redding, P.A. be retained as co-counsel on issues of insurance coverage of the County’s liability policies that would protect the County in the above cases that are pending against the County. |
| BACKGROUND: |
As noted in the Allen Clarke, et al. v. A.E. New, Jr., Inc., et al., Case No.: 2015 CA 000722, 87 inmates, who were housed at the Central Booking and Detention Facility (CBDF) on April 30, 2014, have filed suit against A.E. New, Jr., Inc., the general contractor, Caldwell Associates, Inc., the architect and Escambia County, Florida alleging that their wrongful acts caused the explosion and the injuries suffered by them. A.E. New was the general contractor for the renovation of the laundry and kitchen facilities located in the basement of the CBDF and Caldwell Associates was the architect who designed the renovations. The renovations were necessary because of damage from the June 2012 floods.
As part of the contract awarded to A.E. New and Caldwell, A.E. New was required to obtain a comprehensive general liability insurance policy which would protect and indemnify the County as an additional insured in the event of personal injury claims being filed against the County due to the work performed by A.E. New. Caldwell Associates also was required to carry insurance as the design professionals. The County also carried detention liability policies as the owner and operator of the CBDF through Columbia Casualty, primary carrier, and Great American Insurance Group, excess carrier. Questions have arisen as to the extent of coverage obtained by both A.E. New and Caldwell Associates. In addition, the County’s own liability carriers have served reservation of rights letters raising coverage defenses.
Mr. Dickey, a partner with Barron & Redding, P.A., will be able to provide expert opinions regarding the extent of coverage that the County should enjoy under any policies insuring A.E. New, Caldwell Associates and any subcontractors, as well as the coverage provided by its own insurers, Columbia Casualty and Great American Insurance Group. Bitco National Insurance Company has filed a declaratory relief action in U.S. District Court, Northern District of Florida contending that it is in doubt as to whom it owes an obligation to pay the claims of the Plaintiffs and are raising several coverage defenses. Mr. Dickey will also be entering an appearance in that case to defend the interests of Escambia County in light of Bitco’s seeking judicial intervention.
Mr. Dickey and his partners will be charging $250.00 per hour for their services, associates will be charging $200.00 per hour and paralegals will be charging $75.00 per hour. The initial budget for providing review of and opinions on coverage will be limited to $25,000.00 unless further services are needed during the course of his representation of the County. Attached to this recommendation is Mr. Dickey’s curriculum vitae showing his extensive experience in interpreting contracts, as well as his admirable prior military experience. Mr. Dickey was recommended by a well-respected attorney in insurance matters, Ty Tyler of Tyler and Hamilton, and Mr. Peppler has personal knowledge of Mr. Dickey’s litigation expertise. |
| BUDGETARY IMPACT: |
| Payment of fees and costs for outside legal counsel in the initial amount of $25,000.00 which may be increased on Board approval. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
| N/A |
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