Newsletter

The Lifecycle of a Liability Claim

This article provides a step-by-step guide to understanding the lifecycle of a liability claim.

The California Tort Claims Act governs claims against public entities in California, otherwise known as California Government Code sections 910-913.2. Claims for property damage or bodily injury must be filed within six months of the date of loss, while claims for real property (such as a house) must be filed within one year.

To properly file a claim against a public entity, the claim must be submitted to the agency clerk or another authorized person.

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After receiving a liability claim, members should “submit a claim” on the Authority’s website, www.cjpia.org, or send it via email.

Carl Warren & Co. (Carl Warren) is the Authority’s designated third-party claims administrator for the primary and excess liability programs. A Carl Warren supervisor will review the claim and assign an adjuster upon intake. The assigned adjuster will make initial contact with the member and the claimant. They will also determine if a late claim or insufficiency letter should be mailed and do so within the appropriate time limit, subject to member approval.

The next part of liability claims handling involves fact development. The assigned adjuster will send the member a written request for information outlining all the information necessary to evaluate the claim. Likewise, a phone call or written request will be made to the claimant to secure any information that is necessary to assess the claim and for injury claims—to obtain a recorded injury statement. These requests will go through the attorney’s office when an attorney is involved.

After gathering the information needed to assess liability exposure, the adjuster will either reject the claim or enter settlement negotiations with the claimant or their attorney. Generally, if a claim is a candidate for settlement, these initial efforts to do so will precede a rejection letter. If a settlement cannot be negotiated, a rejection letter will likely be mailed to set forth the six-month statute to file a lawsuit. The six-month statute is computed from the day the rejection letter is sent.

If a lawsuit is filed and served upon the member, the Authority assigns defense counsel from a pre-selected panel of attorneys. In the primary program, the Authority decides the attorney, although recommendations from the member are welcome. For the excess program, the member selects an attorney from the panel if the exposure on the case is within their member retained limit.

The litigation process can be lengthy—generally up to two years—and consists of initial pleadings (filing of the lawsuit and a response by the defense) and discovery (written requests for information from each side, depositions, and site inspections). This is followed by any potentially dispositive motions (summary judgment), mediation, and trial if the case cannot be settled. Throughout the litigation process, a Carl Warren adjuster or supervisor will manage the litigation and provide litigation management plans to the member at 90-day intervals. In addition, defense counsel is instructed to copy the member on any reports regarding the case’s progress. Should the exposure be significant, the Authority’s Claims and Insurance Director, Paul Zeglovitch, jointly manages the case.

For the primary program, the decision to settle or take a case to trial is solely that of the Authority. However, we invite collaboration with members and strive for a unified position. In the excess program, the member can decide to settle or take a case to trial if the exposure on the case is within their member retained limit.

If you have questions about the claims process, contact Paul Zeglovitch, claims and insurance director. For inquiries about a specific claim or case, please contact the assigned Carl Warren adjuster or supervisor.

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