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Resolution 81-16588 RESOLUTION NO. 81-1658e A RESOLUTION AUTHORIZING ACCEPTANCE OF FINAL SETTLEMENT STIPULATION IN CONNECTION WITH WORKERS' COMPENSATION CLAIM OF ERNEST STRAHOSKY AGAINST THE CITY OF MIAMI BEACH WHEREAS, on December, 7, 1973, one ERNEST STRAHOSKY, a former employee of the Cityof Miami Beach, was pushing down on crate with a crowbar i area and lower back; and when he slipped and fell forward, injuring his left hip WHEREAS, Claimant's hip condition continued to deteriorate until 1974 when he underwent a total hip joint replacement. He underwent subsequent additional surgery for revision of this prosthesis on January 17, 1978; and WHEREAS, Claimant has been accepted as a permanent total, meaninghe receives Workers' Compensation payments for the rest of his life, including medical coverage; and WHEREAS, on September 3, 1976, Claimant had another accident when he slipped on an oil slick, suffering extensive damage to his knee, for which surgery was also required; and WHEREAS, no rating has been assigned, however, based on an analysis by Risk Management Services, Inc., it is estimated that a payment of $2,500-$3,500.00 may be in order; and WHEREAS, Risk Management Services, Inc. has determined and recommended that it is in the best interest of the City to enter into a settlement under the provisions of F.S. 440.20 (10), as amended; such settlement calls for the payment byCity the to said former employee of the sum of $35,000.00 representing a final settlement of any and all past, present and future compensation and medical benefits due him under the Workers' Compensation law, and a reasonable attorney's fee of $10,500.00; and WHEREAS, the Order of the Deputy Commission of Industrial Claims approving such settlement stipulation will not be subject to modification or review; and WHEREAS, The City Commission deems it to be in the best interest of the City to enter into a final settlement stipulation as hereinabove set forth; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, that Risk Management Services, Inc., as the agent for the City of Miami Beach, is hereby authorized to enter into a final settlement as approved bya Deputy Commission of Industrial Claims and the Mayor, City Clerk, PP Finance Director, City Attorney, and Risk Management Services, Inc. be, and they are hereby authorized and directed to comply with the Order of the Deputy Commissioner approving such stipulation. PASSED and ADOPTED this 4th day of March, 1981. ? • or Attest: xL4. 61.-1City Cle /lb APPROVED LEGAL DEPT. By Date .21116 s 00 vazo,te „6„4„ed •. �Pr--•BE��;,,, FLORIDA 3 3 1 3 9 91C0 * "VA CA TIONLAND U. S. A.- ,t3/ ' H OFFICE OF THE CITY MANAGER CITY HALL HAROLD T.TOAL 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO. .2(Ed DATE: _ March .k, 1981 TO: Mayor Murray Meyerson and b: oftheC mmissi n • •. t FROM: :r.Id T. oal City Manager SUBJECT: WORKERS' COMPENSATION CASE SETTLEMENT/ ERNEST STRAHOSKY On December 7, 1973, the Claimant, Mr. Ernest Strahosky, while in the employ of the City of Miami Beach at 430 Alton Road, was pushing down on a crate with a crowbar when he slipped and fell forward injuring his left hip area and lower back. Claimant's hip condition continued to deteriorate until 1974 when he underwent a total hip joint replacement. The Claimant had to undergo subsequent additional surgery for revision of this prosthesis on January 17, 1978. The Claimant never returned to work after that date and went on disability pension as of June 1, 1978. Claimant has been accepted as a permanent total, which means he receives Workers' Compensation payments for the rest of his life, plus medical coverage under Workers' Compensation schedules. This is quite significant since Claimant may require another total hip replacement. Based on the above information, the Administration sought to settle this file with the assistance of Risk Management Services, Inc. After a lengthy review and analysis of this file, it was determined that the City's potential exposure in this file could be $83,000.00. To date, the City has paid $12,540.41 in medical costs and $5,728.00 in compensation costs for a total of $18,268.41. On September 3, 1976, the Claimant had another accident. This time he slipped on an oil slick and suffered extensive damage to his knee. Subsequent surgery was required in this regard. At this time no rating has been assigned to the Claimant, however, based on the analysis done by Risk Management Services, Inc., it is estimated that an additional payment of $2,500-$3,500.00 might be in order. The City, for this particular file, has paid to date $784.00 in compensation costs and $3,056.00 in medical costs, for a total of $3,840.00. Based on the particulars of both of these files and the potential financial exposure to the City, the Administration requested that Risk Management Services, Inc. attempt to negotiate a lump sum settlement for both files. In that regard, after a series of negotiations, a mutually acceptable settlement has been reached in the amount of $35,000.00, plus an additional $10,500.00 in attorney fees. Upon successful closure of these files, the City will bear no future liability. However, in relation to the September 3, 1976 accident, the City is going to retain its third party lien rights so that it may be able to receive partial reimbursement for costs already paid out to Claimant. ADMINISTRATION RECOMMENDATION It is recommended that the Mayor and City Commission adopt the attached resolution authorizing the lump sum settlement to Claimant, Mr. Ernest Strahosky, in the amount of $35,000.00, and $10,500.00 for attorney fees. Furthermore, it should be understood that the City will no longer be financially liable for any future costs in regard to both of these claims. The City will also retain its third 35 party lien rights in the event that it can be reimbursed for costs incurred from the September 3, 1976 claim. AGENDA HTT/MMF/lb ITEM �+ 3 - 3 DATE 14111 ORIGINAL RESOLUTION NO. 8.-16588 (Authorizing settlement of Workers' Compensation Claim: Ernest Strahosky v.CMB) 1 • 40 • 1 •,j„ h