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A RESOLUTION APPROVING A SETTLEMENT OF A WORKERS' COMPENSATION SUBROGATION CLAIM WHEREAS, the City has made payments to a former employee pursuant to the Virginia Workers' Compensation Act for injuries sustained in the course of his employment; and, WHEREAS, the employee (whose name is not stated herein for privacy reasons) brought a suit for medical malpractice against a third party who treated the employee for his work-related injuries, and has agreed to accept a proposed settlement with the third party in the amount of $275,000; and, WHEREAS, pursuant to the Virginia Workers' Compensation Act the City has a lien against that portion of the employee's settlement that is causally related to the costs incurred as a result of the malpractice; and, WHEREAS, the City remains obligated for the employee's future medical costs, disability payments and wage indemnity resulting from his accident; and, WHEREAS, based on the analysis of legal counsel and the City's workers' compensation administrator it appears that the City's future exposure for medical • expenses, disability and wage loss is equal to or greater than the maximum amount that could be successfully asserted as its statutory lien; and, WHEREAS, the employee is willing to waive all claims for future benefits and wage loss in return for the City's waiver of its lien and right of subrogation. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that it appearing to be in the best interests of the City, the settlement resulting in the City's waiver of its lien and right of subrogation, with no further obligation for payments pursuant to the Virginia Workers' Compensation Act, is hereby approved, contingent on any required approvals by the Virginia Workers Compensation Commission. Approved by Council December 17, 2007 i I k of Council •