Insurance company to pay city $5.5 million

An insurance company has agreed to pay San Diego $5.5 million in attorneys’ fees stemming from a lawsuit brought by South Bay developer Roque De La Fuente, it was announced today.

The City Council authorized the settlement with the Insurance Company of the State of Pennsylvania, a subsidiary of AIG, in closed session this morning, City Attorney Michael Aguirre said.

Superior Court Judge Linda Quinn awarded the city $1.3 million in attorneys’ fees from the case in April and another $4.3 million in September.

As the city’s insurer, the Insurance Company of the State of Pennsylvania was supposed to be paying the attorneys’ fees accrued by the city in defending the case all along, but refused, according to Aguirre.

The city attorney’s office, with the help of consumer attorney Harvey Levine, sued the company to recover the money.

The Insurance Company of the State of Pennsylvania agreed to pay the city $5.5 million to settle the lawsuit on Friday. The company will also pay San Diego’s legal fees in the case going forward.

“This was a hard, hard-fought case,” Levine said at a news conference to announce the settlement. “It lasted about four years. There wasn’t a document, deposition, any issue in the case that wasn’t hard-fought.”

According to Don McGrath, executive assistance city attorney, it is now up to the Insurance Company of the State of Pennsylvania to decide if it wants to pursue De La Fuente to recover the attorneys’ fees.

In June, Quinn dismissed De La Fuente’s remaining claim against the city for alleged breach of contract stemming from the developer’s Otay Mesa Business Park. He is expected to appeal.

In 2001, a jury awarded De La Fuente $94.5 million in damages on his assertion that the city’s action drove his border business park into bankruptcy. The liability grew to about $150 million with interest, and De La Fuente sought an additional $32 million in attorneys’ fees.

Since that time, the judgment has been reversed in a series of appellate and trial court rulings that favored the city.

Related posts:

  1. SD city helicopters cleared to aid state in night firefighting
  2. Letters to the Editor: Aug. 29, 2008
  3. ‘The Pleasure of His Company’ is a buffet of comedy
  4. Expanded cafe smoking ban explored by city
  5. Tap dance company looks to educate and innovate

Short URL: http://www.delmartimes.net/?p=4396

Posted by on Oct 7, 2008. Filed under Archives. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Archives

Facebook

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

LA JOLLA NEWS

RANCHO SANTA FE NEWS

RANCHO SANTA FE NEWS

RSS RANCHO SANTA FE NEWS

  • Rancho Santa Fe Rotary Club to present second ‘Taste of Rancho Santa Fe’
    The Rancho Santa Fe Rotary Club continues to live up to the motto, “Service Above Self,” and invites you to partner with the Rotary Club at the 2nd Annual Taste of Rancho Santa Fe on Oct. 12. Guests of the event, to be held from 4-7 p.m., will have an opportunity to stroll through the historic and iconic grounds of The Inn at Rancho Santa Fe while sampling f […]
  • Melodrama to open at Village Church Community Theater in Rancho Santa Fe
    As part of the Rancho Days celebration in Rancho Santa Fe, “The Saga of Sagebrush Sal, A Comedy Western Melodrama” is set to open Oct. 5 at the Village Church Community Theater. In this old-fashioned comic melodrama, Sagebrush Sal decides to take over the busiest establishment in town, The Bloody Turnip Saloon, which is owned by Jake the Snake. The audience […]
  • Rancho Santa Fe Historical Society acquires Covenant founder’s ledger
    The Rancho Santa Fe Historical Society has acquired the ledger of Barton Millard, which dates back to the 1920s, and will unveil it at Coffee On The Patio Saturday, Sept. 20, at 10:30 a.m. at La Flecha House. Millard was a founding member of the Rancho Santa Fe Association, co-wrote the initial CC&Bs, and served four terms as its president. Millard’s gra […]