
Dana Point blows insurance coverage; other cities at risk from huge settlement
Our publisher Jon asked me to comment on the recent $50 million out-of-court settlement by the City of Dana Point and its insurer, the California Joint Powers Insurance Authority (“CJPIA”), in favor of two joggers who were hit and very seriously injured by an uninsured drunk on Pacific Coast Highway last year. They were jogging in the clearly defined bicycle lane of PCH when the drunk driver swerved over the line and hit them. I was on the City Council when the accident occurred in April of 2006, and Jon thought my insight would be valuable regarding what the implications are of a $50 million liability payout by a city and its insurance company.
Well, the primary implication of this huge payout, characterized by Orange County-based personal injury guru Mark Robinson as “one of the top settlements in the county’s” history, is that basically the City of Dana Point has blown the limits of its insurance coverage, (the Dana Point annual budget itself is around $25 million, half the amount of the settlement!), it very likely has no liability insurance left for the rest of its current policy, the CJPIA now has blown a huge chunk of… Read More