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Home My WebLink About1996-10-22 - AGENDA REPORTS - PROPOSITION 213 (2)SUBSEQUENT NEED ITEM DATE: SUBJECT: DEPARTMENT: BACKGROUND AGENDA REPORT October 22, 1996 PROPOSITION 213 City Manager City Ma ge pproval Item to be presented by: Michael Murphy Mayor Boyer requested that staff conduct an analysis of Proposition 213 and it's potential impact on the City. Proposition 213 would limit the ability of uninsured or drunk drivers to sue after being in an auto accident. The measure also prevents persons convicted of a felony from suing for damages or injuries sustained while committing or fleeing their crime. Many cities and local government agencies are often subjected to lawsuits because they are considered "deep pocket" resources. Local governments must choose between defending themselves in court, or even though they are not at fault, settle with a plaintiff in order to save taxpayer dollars Proponents argue that uninsured and drunk drivers costs law-abiding policy holders millions of dollars every year. Insurance Commissioner Quackenbush argues that this measure would save Insurance companies money which would be passed on to the consumer. Local governments argue that the initiative will reduce the liability to cities and prohibit felons and uninsured motorists from bringing costly litigation against public agencies. Furthermore, this measure would enact greater restrictions to the 1985 law which was created to prevent felons from recovering monetary awards. The current law protects only property owners. However under this initiative local governments and business owners would be included. Opponents claim this measure targets minorities, students and poor people who cannot afford car insurance. They say that the measure effectively -though not explicitly -will prevent uninsured motorists from winning even medical or lost wages damages, since many contingent - fee lawyers will refuse to take their cases without the promise of the higher non -economic damage awards. RECOMMENDATION Staff recommends that the City Council take a formal position supporting Proposition 213.