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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
David Wilkins, Assistant Attorney General and Director-Transit Section |
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PRESENTER(S): |
David Wilkins |
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TITLE:
title
Disbursement: Approval of disbursement over $200,000 (Bruce Jones Litigation Settlement)
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AGENDA ITEM TYPE:
Disbursement
RECOMMENDATION:
Authorize the disbursement
BACKGROUND:
UTA has reached a conclusion to the employment arbitration with Bruce Jones that will exceed $200,000 in the matter of Bruce Jones vs UTA. The hearing occurred at the offices of Holland and Hart in Salt Lake City for 5 days from May 17 through May 21, 2021, before a single Arbitrator, George Haley. Bruce Jones (Jones) was represented by Richard Burbidge, Carolyn LeDuc and Michael Henderson of the law firm Burbidge Mitchell. Utah Transit Authority (UTA) was represented by Sam Alba, Scott Young and Matthew Purcell of the law firm Snow, Christensen and Martineau. Eleven fact witnesses were called and cross-examined, 6 expert witnesses were called, submitted reports and were cross examined. The parties filed extensive written post-hearing briefs, including legal authorities cited. The parties also submitted post-hearing deposition designations and counter-designations. Having heard the testimony and reviewed the foregoing material the arbitrator made a decision in the case in favor of Jones and against UTA on all claims. That award has been converted to a judgment before the Third District Court in Salt Lake City. The pension portion of the award will be taken up with the UTA Pension Committee.
DISCUSSION:
This disbursement is comprised of the following awarded damages to Mr. Jones:
UTA Employee Retirement Plan’s portion of the award
1. Past shortfall on retirement payments with prejudgment interest $ 482,572
2. Present value of all future retirement payments $ 1,684,447
UTA’s portion of the award
1. Health Insurance payment with prejudgment interest $ 94,283
2. Incentive Payment, with prejudgment interest $ 791,535
3. Jones’s legal fees $ 934,823.24
Total Award
$ 3,987,660.24
ALTERNATIVES:
Failure to pay the award would have UTA in violation of a Court-ordered judgment, and leave the agency subject to garnishments, and seizure of property to satisfy the award.
FISCAL IMPACT:
UTA Employee Retirement Plan would pay $2,167,019. This could affect the actuarial evaluation of the pension trust in 2021.
UTA Self Insurance Fund would pay $1,820,641.24. Losses that exceed recoveries in this fund are repaid out of the Risk Management budget at the end of the year.
ATTACHMENTS:
Settlement