How the city council approves settling claims against the city

(a) Except as otherwise provided in § 2-3.1 (4), a claim may not be adjusted, settled, or compromised without the prior approval of the council. (b) 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 of settlement to the council promptly, but no later than three working days from the receipt of the offer, or before the expiration date of the offer, if any, whichever occurs first. Together with the offer, legal counsel shall transmit to the council: (i) the recommendation of the agency, officer or employee against whom the claim is made; and (ii) 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. (c) 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 adopt a committee report or a resolution specifying the terms of settlement and expressing its approval of the terms. The decision of the council to accept a settlement offer is binding on the city 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. (d) Nothing in this section precludes the corporation counsel from establishing procedures consistent with the Code of Professional Responsibility governing all attorneys licensed to practice law in the State, and the Charter, for the transmittal of settlement offers to the council involving claims not specified by the council pursuant to subsection (b). Further, nothing in this section precludes 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 city make an offer of settlement or judgment in any case in which the city is a party. (e) Definitions. For the purposes of this section, the following definitions apply unless the context clearly indicates or requires a different meaning. City. The city, its agencies, officers, and employees. Claim. Includes any claim, demand, debt, dispute, or other matter in favor of or against the city, its agencies, officers or employees, initiated, brought, or made by any person as defined in § 1-4.1 , or any federal or State agency. The term includes claims for injunctive, declaratory, and extraordinary relief. Legal Counsel. Includes the corporation counsel, deputies corporation counsel, special deputies, and special counsel representing the city in any claim. Special Counsel. The private attorney or law firm retained by the city pursuant to Charter § 5-204.3, to represent the city. Special Deputies. The private attorney or law firm appointed by the corporation counsel with the approval of the council pursuant to Charter § 5-204.1, to represent the city. (f) Exception. This section does not apply to claims arising between the executive branch of city government and the council involving court litigation for which corporation counsel, or if corporation counsel has been disqualified, special counsel, has been retained to represent the agencies, officers, or employees of the executive branch and either the attorneys in the office of council services or special counsel has been retained by the council to represent the council.