COURT HOUSE – At its May 7 meeting, the Middle Township Committee received advice from Solicitor Frank Corrado; always work with the insurance carrier in any attempt to settle municipal litigation.
What prompted the discussion was a recent case in West Wildwood where that borough was saddled with a $1.7-million judgment related to a whistleblower suit brought by the borough’s police chief. When West Wildwood turned to the New Jersey Municipal Excess Liability (MEL) Fund for assistance with the payment, the insurer refused. Another lawsuit ensued as West Wildwood sought to compel the MEL to pay its share of the judgment. The borough lost again.
The MEL successfully defended its refusal to pay because the borough had engaged in settlement of aspects of the case without the insurer’s involvement, Corrado explained.
The MEL has written to each of the municipalities it insures to warn against others taking independent action regarding litigation.
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