Title: Settlement Re: Carol Bowe

Recommendation:
I recommend the School Board approve the Settlement and Release in the matter of Carol Bowe v. School District of Palm Beach County, a copy of which is attached hereto, and authorize the Chairman and Superitendent to execute all related documents.

Description:

• Carolyn Williams was a 24 year employee with the School Board, who failed to convert her life insurance policy from a group policy to an individual policy, when she left the District. She passed away shortly thereafter. This law suit was filed in 1999 against Anthem, the District’s group life insurance company, and the Board. Anthem had only become the District’s group life insurance company a short time before all of this occurred.
• The initial Mediation in December, 2001 resulted in a demand of $130,000 and an offer of $5,000.
• This matter was on a trial docket. Just before trial, Anthem settled for $20,000. Trial was continued. It was not tried thereafter because of conflicts in the attorney’s schedule and because two of the subsequent Judges had to recuse themselves because of individual conflicts relative to the parties or their counsel.
• Adams, Coogler, and partner, Kathy McHale, were representing the District or Board under an Error and Omissions policy that provided for defense costs only; said E & O policy would not respond to any judgment entered. The policy was either through Lloyds of London, or otherwise through the London market.
• In September, 2005 and for the first time in its 5-6 year history, Plaintiff came below $100,000 with her demand. Lloyds of London represented by Mendes & Mount of New York City, authorized $15,000 towards settlement, because of the expense of defending this matter over many years and the anticipated future costs of defense.
• The final offer at the recent Mediation, subject to Board approval, was a combined $30,000, with the Board paying $15,000 and Lloyds paying $15,000. Plaintiff accepted this subsequent to the Mediation, but within the time of the offer.
• You were previously provided a letter by Ms. McHale and a Memo from the Chief Counsel relative to this case and settlement.
• Risk Management and Legal recommend that the matter be settled for this amount.

Financial Impact:
The insurance carrier will provide $ 15,000 toward the settlment.  The remaining $15,000 will come from the District's general fund. 

For Additional Information, contact:

Gerald A. Williams, Esq. (williamsg@palmbeach.k12.fl.us)

Dianne Howard, Risk Manager

Steve Stinson, Esq.

Attachments (list):
Carol Bowe Settlement Nov 16, 05.pdf