2009-06-12 T/C Homes - Prairie Run
LEAGUE OF
MINNESOTA
CITIES
CONNECTING & INNOVATING
SINCE 1913
June 1 2009
Larry Kruse, City Administrator
of Albertville
PO Box 9
Albertville, MN 55301-0009
RE: Tmst Member: City of Albertville
Claimant: TIC Homes, Inc.
Our File: 11057039
Dear Mr. Kruse:
As you know, this claim has come to a conclusion. The plaintifIwas contesting the city's
moratorium on certificates occupancy and building permits regarding homes in the Prairie Run
Subdivision. alleged the city and/or the developer were negligent in providing inaccurate/
defective plans specifying an incorrect flood plain level. The District Court ruled in flwor of the
city. The plaintiff did not file an appeal. There was no claim payment. However, we did incur
$88,588.33 in Litigation costs (legal defense costs). Attached is our computer printout reflecting
the payments.
per my letter oOuly 18, 2006, LMCIT handled this claim as Land Use, Development, or
Franchise Litigation. The coverage agreement states that LMCIT wiU pay 100% of the first
$25,.000 of litigation costs and 85% of the next $225.000 oflitilZ.ation costs. The amount LMCIT
w ~ ~
pays for litigation costs for Land Use, Development, or Franchise Litigation is subject to the
Municipal Liability Deductible shown in the Municipal Liability Thclarations.
This claim was handled under the city's Covenant #CMC 26464 with a coverage period from
October 1, 2005 to October 1,2006. lJnder this covenant, the Municipal Liability Deductible is
$500 per occurrence.
The city's responsibility is as follows:
Deductible
15<?~J co-payment on litigation costs over $25,000
Total
$ 500.00
9,538.25-
$10,038.25
LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST
145 UNIVERSITY AVE. WEST PHONE: (651) 281-1200 FAX: (651) 281-1297
ST. PAUL, MN 55103-2044 TOLL FREE: (800) 925-1122 WEB: WWWLMCORD
CLAIMS DEPARTMENT
, ."
11057039
"
-.:..-
06-12-09
Please issue a check f()r $10,038.25 payable to LMCIT and f{)rward it to this oHke. Attach a
copy ofthis letter with your check or reference our file number of 11057039 on the check.
Payment is due by July 13, 2009. If you have any questions, feel free to contact me at 651-281-
1282.
Very truly yours,
M~v((~~
llark Rossow
Litigation Supervisor
Cc: Arlan Middleton
Middleton Insurance Agency
Tim Mueller-BRAC
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