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