TO: Finance Committee
FROM: Todd C. Lenzie, Interim Corporation Council
SUBJECT:
title
Ordinance Amending the 2026 Annual Budget for the City of Joliet to Authorize Funding for the Settlement of Castillo v. City of Joliet, 24 LA 478
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BACKGROUND:
This memorandum provides background information and a recommended budget amendment related to the settlement of Castillo v. City of Joliet, 24 LA 478.
The purpose of this amendment is to allocate the necessary funds to address the City’s financial obligations arising from the settlement of this matter.
The Castillo lawsuit is a negligence based action filed against the City, asserting claims for wrongful death and a survival action for pain and suffering. Throughout the litigation, the City incurred defense costs and related expenses associated with evaluating and responding to these claims.
As part of the City’s self-insurance program, Joliet maintains a Self-Insurance Retention (SIR) of one million dollars. The SIR is eroding, meaning that all qualifying litigation expenses, including attorney’s fees, expert costs, discovery related charges, and other defense expenditures, are deducted from the retention amount. As these expenses accumulated during litigation, the available balance within the City’s retention was reduced, impacting the total funding required to resolve the matter.
All parties to the litigation, including the City’s insurance carriers, participated in mediation, in which a tentative settlement has been reached to resolve all claims brought in the Castillo matter. To finalize this settlement and properly account for the associated expenditures, including both the settlement amount and the litigation costs eroding the SIR, a budget amendment is required.
CONCLUSION:
Approving this amendment will ensure the City has sufficient appropriated funds to complete the settlement and formally conclude the claims.
RECOMMENDATION:
recommendation
Based on the above it is recommended that the Mayor and City Council approve the Ordinance Amending the 2026 Annual Budget for the City of Joliet to Authorize Funding for the Settlement of Castillo v. City of Joliet, 24 LA 478
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