Hope to Further Cut Costs
City, Chicago Swap Liability Notes

By GINGER ADAMS OTIS

The Law Department hosted a "municipal legal strategy session" with visiting attorneys from Chicago's Law Department in an effort to share information on legal initiatives and compare practices that are implemented in both cities.

Law Department/Susanne Elstein TORT CAVORT: Attorneys Scott Jebson (left) and Jordan Marsh, on loan from Chicago's Law Department for two weeks of immersion learning with the city's Law Department, got a chance to try a tort case in Brooklyn with help from Corporation Counsel Michael A. Cardozo and Assistant Corp. Counsel Thomas Merrill.

During a two-week trip that ended last week, Chicago attorneys Jordan Marsh and Scott Jebson even got to try a case in Brooklyn pro hac vice - the legal term for when an out-of-state attorney is admitted to practice law in a local jurisdiction for a specific case.

'Learn From Each Other'

"We are excited about this opportunity to share strategies that will enable both large cities to better defend against burgeoning litigation," said Corporation Counsel Michael A. Cardozo. "This forum will allow us to exchange ideas and learn from one another."

The two teams focused on legal strategies for reducing municipal liability in tort cases, which cost New York City $450 million annually, and millions more in legal fees. Chicago pays out about $35 million annually in tort claims.

Mr. Marsh and Mr. Jebson were "assigned" to the Tort Division while in New York. The case they helped try in Brooklyn originally involved a claim for $10 million, but it was settled by the city for $5,000.

Unit for Major Liabilities

The Chicago attorneys said they were particularly interested in two legal strategies that the Law Department has embraced: risk management and "high-risk" case management.

High-risk cases are handled by the city's 50-attorney Special Litigation Unit. SLU cases include police shootings and pursuit, school supervision, "toxic" tort cases, highway design, and accidents involving city vehicles, among others. The unit's structured on a vertical basis, with most matters being handled from the claim stage up to or including trial by one or more assigned attorneys under the supervision of a team leader. Chicago is currently creating its own 50-member SLU unit. The Risk Management Unit provides city agencies with legal advice derived from lessons learned while defending the city. Analysis of pending and settled litigation provides guidance to agencies in implementing changes that will reduce the risk of future lawsuits while also helping to make the city safer. It also focuses on preservation of evidence and early investigation of major incidents, and investigates cases involving suspected fraudulent claims.

While litigation nationwide is on the rise, the city has used these strategies to cut its tort payouts from $557 million in fiscal year 2003 to $477 million in fiscal year 2006 - the first serious downturn it has seen in the past 30 years.

"Over the past year, we have sought out opportunities to share information and collaborate with legal departments across the country, including New York's department," said Corporation Counsel Mara Georges. "This exchange of ideas and information will benefit both cities and enable both departments to better serve the taxpayers of our cities."