63G-10-503. Risk manager’s authority to settle a claim — Additional approvals required.
(1)
The risk manager may compromise and settle any claim for which the risk management fund may be liable:
Terms Used In Utah Code 63G-10-503
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Executive director: means the individual appointed under Section 63A-1-105 as the executive director of the Department of Government Operations, created in Section 63A-1-104. See Utah Code 63G-10-501
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
Settlement agreement report: means a report that:
(a)
states the total amount of the settlement;
(b)
states the payer of the settlement;
(c)
states the recipient of the payment;
(d)
summarizes the circumstances related to the settlement; and
(e)
contains a copy of the settlement agreement, unless the agreement is not permitted to be disclosed due to a court order or other legal requirement. See Utah Code 63G-10-102
(a)
if the settlement amount is $500,000 or less, on the risk manager’s own authority;
(b)
if the settlement amount is more than $500,000 but not more than $1,000,000, upon the approval of the attorney general, or the attorney general’s representative, and the executive director;
(c)
if the settlement amount is more than $1,000,000 but not more than $1,500,000, upon the governor’s approval after receiving approval under Subsection (1)(b);
(d)
if the settlement amount is more than $1,500,000 but not more than $2,000,000, upon the Legislative Management Committee’s approval after receiving approval under Subsections (1)(b) and (c); and
(e)
if the settlement amount is more than $2,000,000, upon the Legislature’s approval after receiving approval under Subsections (1)(b), (c), and (d).
(2)
(a)
The risk manager shall, upon initiation of negotiations that the risk manager reasonably believes to have the potential to lead to a settlement requiring approval under Subsection (1)(d) or (e):
(i)
notify the Legislature’s general counsel that negotiations have commenced;
(ii)
continue to keep the Legislature’s general counsel informed of material developments in the negotiation process; and
(iii)
permit the Legislature’s general counsel to attend negotiations.
(b)
The information that the risk manager shall provide to the Legislature’s general counsel under Subsection (2)(a) includes:
(i)
the nature of the claim that is the subject of the settlement negotiations;
(ii)
the known facts that support the claim and the known facts that controvert the claim; and
(iii)
the risk manager’s assessment of the potential liability under the claim.
(c)
A document, paper, electronic data, communication, or other material that the risk manager provides to legislative general counsel in the discharge of the risk manager’s responsibility under Subsection (2) may not be considered to be a record, as defined in Section 63G-2-103.
(d)
Information provided by the risk manager to legislative general counsel under Subsection (2)(a) and a communication between the risk manager and legislative general counsel under Subsection (2)(a) shall be considered to be evidence that is subject to Rule 408 of the Utah Rules of Evidence to the fullest extent possible.
(e)
Subsections (2)(c) and (d) apply regardless of whether:
(i)
the risk manager acts personally under this section or through counsel or another individual acting under the risk manager’s direction; or
(ii)
other individuals under the direction of legislative general counsel are involved in the process described in this section.
(3)
The risk manager shall, for each settlement agreement approved under this section for an amount greater than $250,000 but less than $1,500,000, give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.
