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<br />'. . <br /> <br />e <br /> <br /> <br />. <br /> <br />Ce Pi To C.T'1 <br />)\ II II <br /> <br />(Ylt, r"c.S i .... <br />A-H-crNlJ <br /> <br />" , <br /> <br />-~ <br /> <br />RISK & INSURANCE <br />MANAGEMENT SERVICES <br /> <br />August 20, 1984 <br /> <br />Mr. Robert T. Herrera <br />Director of Administration <br />City of La Porte <br />P. O. Box ll15 <br />La Porte, Texas 77571 <br /> <br />Dear Mr. Herrera: <br /> <br />Thank you for your letter inquiring about the liability coverage <br />for the contractual indemnification obligations assumed by the <br />city under the Traffic Signal Agreement with the State Department <br />of Highways and Public Transportation. <br /> <br />Although your letter does not reflect it, I assume the type of <br />liability to which you are referring is the liability of the <br />city to third parties who suffer injury or property damage as <br />a proximate result of the installation, placement or operation <br />of the traffic signals under the Traffic Signal Agreement. <br /> <br />Although the contract with the State appears to be one of ad- <br />hesion, it is probably enforceable against the City of La Porte. <br />In any event, our liability coverage would provide a defense to <br />any such suit seeking damages arising out of an accident or event <br />which occurred during the time that the city is a member of the <br />Fund. <br /> <br />To give an example, if an automobile collision occurs because of <br />an alleged malfunction of the traffic signal and a suit were filed <br />against both the state and the city, the city would have an obli- <br />gation under the contract to indemnify and hold the state harmless. <br />The suit would be defended by the Fund and if the state sought in- <br />demnity under the Traffic Signal Agreement, the Fund would also <br />defend the city regarding those allegations. However, without <br />knowing the details of the actual occurrence, the manner in which <br />the suit is alleged and the actions of the State in trying to en- <br />force the obligations assumed by the city under the contract, it <br />is difficult to give you a more definitive answer. <br /> <br />Based upon my previous experiences litigating these types of con- <br />tracts with the State, let me make the following s <br /> <br />AUG 2 2 1~ ~.il <br /> <br />ASS'L-CITY f\i, ., ,~ER <br />101-,0 SOUTHWEST TOWER · AUSTIN, TEXAS 78701 · (512) 478-6601 OFFICE <br /> <br /> <br />~. <br /> <br />=- <br />