Lancaster County doesn't pay the full cost of settling lawsuits.
The most the county spends to settle any suit is its $25,000 insurance deductible. The insurance company pays the rest.
Travelers Insurance Co. has been the county's agent for many years. It handles liability suits for all county departments, including the prison.
So the county paid $25,000 in the Jon Eichelman lawsuit and the insurance company picked up the remaining $475,000 in settlement costs, plus all legal costs of defending the case.
Felix Nieves received a $7,500 settlement. The legal costs totaled $27,860. So the county again paid its full $25,000 deductible.
James Wilson received a $20,000 settlement. The county paid half of that, plus another $4,665 in defense costs. Nurse Stephanie Brodt's insurance carrier paid the other $10,000.
The Eichelman lawsuit, settled in August 2007, did not affect the county's insurance costs this year. The county's premium for law enforcement liability insurance from Travelers in 2008 is $154,000 — actually down from nearly $168,000 last year.
The insurance company, not the county, ultimately decides whether to contest or settle individual lawsuits.
"Insurance company lawyers are not employed by us or paid by us," says county solicitor Don LeFever. "Our policies provide that carriers have complete autonomy to settle lawsuits."
Joseph Santarone Jr., the King of Prussia attorney hired to defend the county and prison in the Eichelman suit, says he was ready to try the case, but "the insurance company did a risk-benefit analysis" and settled outside the courtroom.
ABOUT THIS 4-DAY SERIES
Monday: A life in ruins.
Warden decries inmate lawsuits.
TUESDAY: Prison overcrowding.
Settled lawsuits.
Who pays settlements?
Health in private hands.
Wednesday: The contested lawsuits.
When is suit 'frivolous'?
Thursday: Guards have their say.
Critics urge: Reduce abuse now.
Staff writer Jack Brubaker can be reached at jbrubaker@LNPnews.com or 291-8781. 