Public Commons

• Supplementary Legal Services For Insurance Claim Defence

Part of City liability and insurance City Spending

Excerpt from report dated March 10, 2011 by Deputy City Manager and Chief Financial Officer to Government Management Committee seeking the authority to enter into agreements to retain nine outside law firms to represent the city in insurance claims, to supplement the city's legal services.

Supplementary Legal Services For Insurance Claim Defence Costs of insurance claim defences are ultimately reflected in corporate insurance charges to Divisions and applicable insured Agencies, Boards and Commissions. The 2011 Non- Program Operating Budget for Insurance Premiums & Claims of $47.7 million includes $12.5 million for external legal firm billings. The same amount will be included in the 2012 and 2013 Non-Program Operating Budget submission. In 2010 the total fees billed by the eight external legal firms retained for insurance claims defence was $10.5 million. On average, at any given time, external legal firms handle 1,500 litigated insurance claim files for the City of Toronto. Litigated claim files are assigned to City approved external legal firms pursuant to the City's Claims Legal Procedures as adopted by City Council. External legal firms retained by the City are utilized to supplement the City's Legal Services. Work amongst the external firms will be assigned on the basis of several factors including particular individual expertise, the nature of the claim and simple rotation.