Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
April 23, 2019
DATE: April 16, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Elizabeth Black, Senior Port Counsel
SUBJECT: OneBeacon Settlement
ACTION REQUESTED
Request Commission authorization for the Executive Director to enter into a settlement
agreement in the form attached as Exhibit 1 with Lamorak Insurance Company and Bedivere
Insurance Company, both formerly known as OneBeacon Insurance Company.
EXECUTIVE SUMMARY
The Port of Seattle was insured under two general liability insurance policies issued by
OneBeacon Insurance Company (now known as “Bedivere”) from 1960-1962. The policies
themselves are considered lost, but Bedivere has provided defense coverage to the Port related
to environmental cleanup costs based on evidence that the policies likely existed. The
indemnity limit for each policy is $100,000, and Bedivere has paid the Port approximately $3.35
million in defense costs to date. This settlement agreement will release Bedivere from certain
future claims under the policies in exchange for a payment of $820,000.
JUSTIFICATION
Based on the lack of documentation regarding the policies, the low policy limits, and Bedivere’s
participation in the Port’s defense to date, the benefits of settlement at this time outweigh the
costs of pursuing the Port’s claim further.
DETAILS
Further details will be presented by counsel in executive session on April 23, 2019.
FINANCIAL IMPLICATIONS
Revenue: Approximately $820,000.
ATTACHMENTS TO THIS REQUEST
(1) Draft Settlement Agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
Briefing with counsel in executive session on April 23, 2019.
