Loading...
Workers' Compensation Settlement for Charles Klein Copyright 2014 City of Dubuque Consent Items # 25. ITEM TITLE: Workers' Compensation Settlement for Charles Klein SUMMARY: City Attorney recommending approval of an Agreement for Settlement regarding a Workers' Compensation claim that was filed against the City of Dubuque by Charles Klein. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Staff Memo Staff Memo Reddick Letter Supporting Documentation Settlement Agreement& Release Supporting Documentation HE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi BARRY LINDAHL CITY ATTORNEY To: Mayor Roy D. Buol and Members of the City Council DATE: May 23, 2016 RE: Charles Klein vs. City of Dubuque —Workers' Compensation Claim Attorney Les Reddick, representing the City of Dubuque, is recommending approval of an Agreement for Settlement regarding a Workers' Compensation claim that was filed against the City of Dubuque by Charles Klein. Mr. Klein was an employee of the City of Dubuque Leisure Services Department and sustained a work-related injury in 2010 while using a power washer when working as a mechanic. Mr. Klein fell on his head and eventually had neck fusion surgery in 2012. Mr. Klein was recently awarded social security disability benefits, has significant lifting restrictions and most likely is unemployable for any job he's qualified to do. The case was mediated with a former Deputy Workers' Compensation Commissioner acting as the mediator. The agreement, with City Council and Iowa Workers' Compensation Commissioner approval, will pay the employee a lump sum of $190,000 with future medical expenses related to the July 1 , 2010 injury. In return, Klein is signing a global release of any claim against the City and foregoing any future weekly benefits for the injury. Funds are available in the Workers' Compensation reserve to pay the settlement. I recommend approval of this Agreement for Settlement. BAL:tIs cc: Michael C. Van Milligen, City Manager Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Manager Marie Ware, Leisure Services Manager Les Reddick, Esq. F:\USERS\tsteckle\Workers Comp-Reddick Cases\Klein Charles\MayorCouncil_KleinWorkrsCompClaim_052316.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563)583-4113/FAX (563)583-1040/EMAIL balesq@cityofdubuque.org KANE,NORBY&REDDICK, P.C. ATTORNEYS 2100 ASBURY ROAD, SUITE 2 DUBUQUE, IOWA 52001-3091 Brian J.Kane Les Reddick* Brad J.Heying Todd L.Stevenson* Retired: Kevin T.Deeny** Gary K.Norby Bradley B.Kane Joseph P.Kane Nicholas J.Kane All admitted in Iowa Phone: (563)582-7980 *Also admitted in Illinois Facsimile: (563)582-5312 **Also admitted in Wisconsin E-mail: IreddicWbIcanenorbvlaw.com May 23, 2016 Mr. Barry A. Lindahl City Attorney Harbor View Place, suite 330 300 Main Street Dubuque, Iowa 52001-6944 RE: CHARLES KLEIN WORKERS' COMPENSATION SETTLEMENT Dear Barry: Enclosed please find an Agreement for settlement for an injury sustained by employee Charles Klein. I am asking the City Council to approve this agreement for signature by the City Manager. It will then be forwarded to the Iowa Workers' Compensation Commissioner for approval. Charles Klein has worked for the city since 1979. On July 1, 2010, he was working as a mechanic in the Leisure Services Department and was injured while using a power washer. He fell on his head and eventually had neck fusion surgery in 2012. He has been off work for 15 months on disability. He was recently awarded social security disability benefits, has significant lifting restrictions and most likely is unemployable for any job he's qualified to do. He filed a claim with the Iowa Workers' Compensation Commissioner. We mediated this case with a former Deputy Workers' Compensation Commissioner acting as the mediator. We have an agreed upon settlement that would pay the employee a lump sum of $190,000, with future medical expenses related to the July 1, 2010 injury, the responsibility of the city, subject to City Council and the Commissioner's approval. In return Klein is signing a global release of any claim against the city and foregoing any future weekly benefits for the injury. If the case is not settled and went to a hearing, Klein could be found totally, permanently disabled. If so he could be entitled to weekly benefits in the amount of$603.38 per week for life, statistically, 23.4 years. All things considered, this settlement is an equitable one under the statute mandating an employee's right to compensation for a work injury. I have enclosed the settlement agreement for City Council approval and an executed copy of the global release. I would ask that the City Council approve the settlement for the City Manager's signature. Very truly yours, KANE, NORBY & REDDICK, P.C. By: Les V. Reddick 2 BEFORE THE IOWA WORKERS' COMPENSATION COMMISSIONER CHARLES KLEIN, Claimant, vs, CITY OF DUBUQUE, Employer, Self -Insured, Defendant, Contested Case File No, 5060058 Compliance File No, 1564767 D/I: 7/1/10 COMBINATION SETTLEMENT [Iowa Code Section 85.35(4)] The undersignedparties submit this Combination Settlement to the Workers' Compensation Commissioner pursuant to Iowa Code section 85.35(4). In support of it, these parties agree: 1. The Claimant sustained an injury that arose out of and in the course of the employment on July 1, 2010. 2. The July 1, 2010 injury resulted in neck surgery. The Employer has compensated Claimant for that injury by way of payments for TTD, PPD and medical expenses totaling $178,260.31. The Employer will continue to pay future medical expenses for the treatment related to the July 1, 2010 injury payable under Chapter 85.27. 3. The Employer disputes other claims made by Claimant based upon causation issues. (See medical record attached). In consideration of the payment of the sum of $190,000, the parties are making a full and final disposition of all other injuries, disabilities or claims that Claimant has relating to the July 1, 2010 injury, other than future medical expenses payable under Chapter 85.27. In consideration ofthi.s payment, Claimant releases and discharges the • Employer from all liability under the Iowa Workers' Compensation Law for the above compromised claim. 4. Claimant acknowledges that he has read this Combination Settlement and understands that the money he receives under this settlement is the total amount he will receive for any claim and that there will not be a hearing and decision on his claim. Claimant acknowledges that if this Combination Settlement Agreement is approved by the Workers' Compensation Commissioner and the settlement amount is paid he will be barred from future claims or benefits under the Iowa Workers' Compensation law for the injury compromised, with the exception of fiiture medical expenses related to treatment for the July 1, 2010 injury and payable under Chapter 85.27. 5. It is agreed by the parties that this settlement was entered into with the understanding that the lump sum payment of $190,000.00 represents the final and only award Claimant will ever receive from his employer with respect to the workplace injuries alleged herein. From this amount will be deducted payment of litigations costs in the amount of $1,594.14, and payment of attorneys' fees of $50,000.00, leaving the Claimant with a lump sum settlement of $138,405.86 which should be allocated to that period of time extending from the date this agreement is approved by the Iowa Workers' Compensation. Commission through the period of Claimant's life expectancy. According to the table set out in U.S. Bureau of the Census, National Center for Health Statistics and United States Life Tables, dated 2010, Claimant, who has a birth date of November 7, 1958 and is presently 57 years of age, has a remaining life expectancy of 1,216.8 weeks or 23.4 years. Dividing this number of weeks into the net recovery amount Claimant will receive of $138,405.86 produces the weekly settlement rate of $113.75, a weekly settlement rate envisioned by and stipulated to by the parties. Payment of the settlement amount is not to be construed as payment of weekly benefits, medical benefits, or any other benefits under the workers' compensation laws of the state of Iowa. 6. The Employer will file a final electronic subsequent report of injury and mail Claimant a PAR that contains the information in the final SROI, including the date that weekly compe ,.tion - .s las; paid. ./7/7(:, Date Employer l Die Employer's Attorney Date Approved as part of the accompanying settlement this day of , 2016. Iowa Workers' Compensation Commissioner RELEASE The undersigned, CHARLES KLEIN, being of legal age, in consideration of the payment of One Hundred Ninety Thousand Dollars ($190,000.00) does hereby release, acquit and forever discharge THE CITY OF DUBUQUE (including its elected and appointed officials in their individual and official capacities), and its officers, directors, and employees ("Released Parties") from any and all liability whatsoever, including all claims, demands and causes of action of every nature affecting me which I may have or ever claim to 1 ve by reason of any event or incident oceurrmg before 'ane date of this release, except any workers' compensation claims. I specifically release and covenant not to sue the Released Parties for any and all claims which were or might have been made arising from my employment for the City of Dubuque and any rights and claims arising under The Age Discrimination and Employment Act (29 U.S.C. Section 621 et seq.) Title VII of the Civil Rights Act of 1964, The Americans With Disabilities Act, The Employee Retirement Income Security Act, The National Labor Relations Act, The Iowa Civil Rights Act and any human rights laws and any other city ordinance or state or federal statute, rule or regulation that in any way pertains to discrimination in employment or to the terms of my employment or the voluntariness of this agreement. I further covenant not to sue the Released Parties, or make any claims for any employment or benefit -related matter, other than any workers' compensation claim I may have. Signature of this Release by me confirms my retirement of employment with the City of Dubuque. As a further consideration of said payment I hereby agree: 1. That this release covers all injuries and damages, whether known or not and which may hereafter appear or develop arising from the matters above referred to. 2. That this release is executed as a compromise settlement of disputed claims, liability for which is expressly denied by the Released Parties, and the payment of the above sum does not constitute an admission of liability on the part of any person or entity. 3. That I am executing this release solely in reliance upon my owri knowledge, belief and judgment and not upon any representations made by the parties released or others in their behalf. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. Dated at_ this /3 day of 2016. STATE OF IOWA } COUNTY OF DUBUQUE ) ss: This instrument was acknowledged before me on the 1,3141 day of 2016, by CHARLES KLEIN. 'Alk TARY PUBLIC IN AND OR THE STATE OF IOWA