Settling claims and lawsuits against the County

A. Workers' compensation claims. The corporation counsel, with the approval of the mayor, may settle, compromise, or otherwise resolve any workers' compensation claim now existing or that may arise requiring payment of a total amount not exceeding the sum of: (1) the applicable permanent partial disability rating; (2) two percent for residuals for each injured body part; and (3) no more than $1,000 for disfigurement. In the case of a workers' compensation claim that does not involve a permanent partial disability rating, the corporation counsel, with the approval of the mayor, may settle, compromise, or otherwise resolve the claim by payment of a total amount not exceeding $25,000. Any workers' compensation settlement in excess of the authority granted by this subsection requires council authorization. B. Other claims or civil litigation. The corporation counsel, with the approval of the mayor, may settle, compromise, or otherwise resolve any claim not described in subsection A now existing or that may arise requiring payment of a total amount not exceeding $25,000 if the fund to settle claims has been appropriated and is available. Any settlement in excess of $25,000 requires council authorization. C. The director of finance shall file with the council a quarterly report of all settlements and claims. D. The council shall determine and specify from time to time, by resolution, claims for which all written offers of settlement are to be transmitted to the council by legal counsel. Upon adoption of such a resolution, legal counsel assigned to the claim specified in the council resolution shall transmit any written offer or settlement to the council promptly, but no later than three working days from the receipt of the offer, or prior to the expiration date of the offer, if any, whichever occurs first. Together with the offer, legal counsel shall transmit to the council: (1) the recommendation or the agency, officer, or employee against whom the claim is made; and (2) the recommendation of the legal counsel, as to whether to accept, reject, or make a counter-offer to the offer. If, due to the shortness of time within which to respond to an offer of settlement, legal counsel is unable to obtain a recommendation from the agency, officer or employee against whom the claim is made, legal counsel need include only legal counsel's recommendation in the transmittal. However, legal counsel shall obtain the recommendation of the affected agency, officer or employee as soon as practicable, and submit the recommendation in writing to the council. E. The council may, after deliberation in executive session, accept or reject the offer, or propose a counter-offer. If the council decides to accept the offer of settlement, the council shall do so by adopting a resolution specifying the terms of settlement and expressing its approval of the terms. The decision of the council to accept a settlement offer shall be binding on the County and on legal counsel. In the event the council rejects the offer or proposes a counter-offer, it shall so inform legal counsel in executive session. Legal counsel shall transmit the council's acceptance of the offer of settlement or the council's proposed counter-offer to the claimant promptly and without delay. F. Nothing in this section shall preclude the corporation counsel from establishing procedures consistent with the provisions of the code of professional responsibility governing all attorneys licensed to practice law in the State of Hawaii, and the charter, for the transmittal of settlement offers to the council involving claims not specified by the council pursuant to subsection C of this section. Further, nothing in this section shall preclude legal counsel from recommending to the council on legal counsel's own initiative, or at the request of the affected agency, officer or employee against whom a claim is made, offers to adjust, settle, or compromise any claim, or to recommend to the council that the County make an offer of settlement or judgment in any case in which the County is a party. G. Definitions. For the purposes of this section: "Charter" means the revised charter of the County of Maui, 1993, as amended. "County" means the County of Maui, its departments, officers and employees. "Legal counsel" includes the corporation counsel, deputies corporation counsel, and special counsel representing the County in any claim. "Special counsel" means the private attorney or law firm retained by the County pursuant to charter section 3-6(6). H. Exception. This section shall not apply to claims arising between the executive branch and the council involving litigation for which corporation counsel, or if corporation counsel has been disqualified, special counsel, has been retained to represent the departments, officers or employees of the executive branch and special counsel has been retained by council to represent the council. ( Ord. No. 5675 , § 1, 2024; Ord. 3310 § 1, 2005; Ord. 3259 § 1, 2005; Ord. 2786 § 2, 1999: Ord. 871 § 1, 1977: prior code § 5-6.1)** ** Editor's Note: There are two prior code sections 5-6.1.