1. 2007 International Conference Washington, D.C. ~ November 7-9, 2007 Fighting (for) City Hall: Exploring, Insuring and Controlling Municipal Liability Risks

2. Fighting (for) City Hall Panel Members MODERATOR: Ruth Moraski, President The Zigmund Company Maria McGinn, Underwriting Manager Euclid Managers, LLC Thomas P. McGinnis, Partner Thomas, Thomas & Hafer, LLP Daniel Pliszka, Manager Risk Management Consulting, Bickmore Risk Services Rick Savakinas, Claims Manager Scottsdale Insurance Company

3. Overview Immigration Law and the ramifications of enforcement or circumvention at the local level Can municipal governments outsource their responsibility? Sovereign immunity in cases of risk transfer

4. Immigration Law Dilemma The rights of municipal governments in immigration enforcement

5. City of Hazelton Third Class under PA Law City Settled by Illegal Immigrants from 2000 to 2006

6. The Ordinances Ordinance 2006-13 Ordinance 2006-18 Ordinance 2006-19

7. The Complaint Aug 15, 2006, Complaint Regarding Illegal Immigration Relief Act Ordinance filed Trial Set for March 12, 2007

8. The Issues Supremacy Clause Equal Protection Due Process Fair Housing Act 42 U.S.C. 1981 Plaintiff’s Privacy Rights PA Landlord and Tenant Act

9. The Issues cont. Hazleton’s Municipal Powers Hazleton’s Legitimate Police Power

10. The Verdict Verdict Rendered on July 26, 2007 Plaintiffs Won City Appealed

11. Summary Laws regarding Immigration are changing – Be Aware Open communication of all parties is key – Ask ‘What If’ Questions

12. Outsourcing Are you truly outsourcing your liability?

13. Outsourcing Contractual Risk Transfer Identifies exposures Assigns loss control/prevention responsibilities Improves efficiency

14. Outsourcing How can risks be minimized? Appropriate limits of liability Indemnification provisions Proper documentation

15. Outsourcing and Sovereign Immunity Is there danger of waiving immunity by outsourcing?

16. Kosciusko County Board of Commissioners Indiana County Population 80,000 County Jail

17. Kosciusko County Board of Commissioners Summary of Case: North Webster Police Department Arrested Reid for Drunk Driving on 3- 15-03 Reid was a Heavy Drinker and put on Watch at the County Jail

18. Kosciusko County Board of Commissioners Summary of Case continued: Defendant Nurse initially Prescribed Lithium for Reid Reid Collapsed on 3-18-07; CPR was Administered Reid Died

19. The Allegations Count I: Violation of 42 U.S.C. 1983 Count II: Violation of 42 U.S.C. 1983 Count III: Wrongful Death Under Indiana Law Count IV: Medical Negligence Claim Under Indiana Law

20. The Issues Violations of the 14 th Amendment,1983 County Sheriff, County Jail Physician, Nurse, various County Defendants Named Judge Denied Qualified Immunity Federal Actions Not Tossed; Fees and Costs Involved

21. The Settlement Case Settled for $925K Travelers and SIC Split 50-50

22. Summary Experienced Claims Handling is Important Be Aware of the Jurisdiction Understand the Importance of Venues – Federal vs. State Is Settlement an Option?

23. Takeaways Open communication of all parties is key. Ask those important 'what if' questions Experienced claims handling is important Is settlement an option? Everything an entity does encompasses some risk When in doubt, seek legal counsel

24. Audience Q&A

25. Thank you to … Maria McGinn Thomas P. McGinnis Ruth Moraski Daniel Pliszka Rick Savakinas