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<br />. <br /> <br />. <br /> <br />RESOLUTION NO. 87-3 <br /> <br />WHEREAS, cities throughout the State have experienced <br />dramatic changes in the last several years concerning the <br />availability, cost, and adequacy of public liability insurance; <br />and <br /> <br />WHEREAS, such changes have had a profound detrimental impact <br />on the financial condition of cities and have increased the <br />burden on their taxpayers; and <br />WHEREAS, annual increases in the cost of premiums for such <br />insurance by several hundred percent have become commonplace; and <br />WHEREAS, such insurance has, in many instances, become <br />unavailable to Texas cities; and <br />WHEREAS, a major cause of such insurance crisis is the <br />explosion of tort liability and damage awards in this State and <br />throughout the Nation; and <br />WHEREAS, a trend is occurring which has resulted in an <br />increase in the amount of and number of court awards based on <br />factors which are not related to economic loss, including awards <br />for pain and suffering, and awards of punitive damages; and <br />WHEREAS, in this year, a Texas Court of Appeals upheld an <br />award of punitive damages against a municipality, such case being <br />the first reported case of a Texas Appellate Court uphold~ng an <br />award of punitive damages against a municipali~y; and <br />WHEREAS, in this year, the Texas Supreme Court held, for the <br />first time, that attorneys' fees may be awarded against a <br />municipality under the Texas Attorneys Fees Statute; and <br />WHEREAS, the City Council of the City of La Porte finds that <br />in order to ameliorate the insurance crisis and the financial <br />burden resulting therefrom, and in order to reduce the frequency <br />of excessive court awards, which awards both cause and exacerbate <br />such crisis, it is necessary that the Legislature adopt <br />legislation for the reform of tort law, and adopt legislation <br />affecting the kind and amount of damages that may be awarded <br />against municipalities in Texas. <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL <br />OF THE CITY OF LA PORTE, TEXAS: <br />That the City Council urges the Members of the Legislature <br />to adopt legislation for the reform of tort law, and adopt <br />legislation governing the character and amount of damages that <br />may be awarded against municipalities in Texas. <br />PASSED AND APPROVED at La Porte, Texas, this the 23rd day of <br />March, 1987. <br /> <br />CITY OF LA PORTE <br /> <br />1~h, ~P(~ <br /> <br /> <br />Norman L. Malone, Mayor <br />