Printed on: 05/20/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.

ADMINISTRATIVE POLICY

Allocating Judgments and Settlements from Litigation

Responsible University Officer(s):

  • Associate Vice President for Budget and Finance

Policy Owner(s):

  • Associate Vice President for Budget and Finance

Policy contact(s):

Date Revised:

Nov 8, 2013

Effective Date:

Sep 1, 1998

POLICY STATEMENT

The University may incur financial obligations or receive payments as a result of litigation. For judgments and settlements covered by insurance, any financial obligations will be handled under an insurance principle with the applicable annual premium spread across all units in the University. A deductible amount up to $10,000 will generally be the responsibility of the Resource Responsibility Center (RRC) from which the litigation originated. Additional settlement amounts in excess of the deductible paid by the RRC will be paid by the University's insurance programs. For judgments and settlements not covered by insurance, the responsibility for payment will be determined by the President, Provost, Chief Financial Officer, and responsible dean, vice president, or chancellor.

Payments received, up to the amount of loss incurred, will generally be returned to the unit from which the claims or litigation originated unless previously restored. Payments will be reduced by the costs incurred for outside counsel, fees and expenses. Amounts received in excess of the actual loss and litigation expenses will be deposited to the central holding account managed by University Budget and Finance.

Any remaining allocation of obligations and payments will be decided by the Chief Financial Officer with agreement by the Executive Vice President and Provost or designee. These decisions should be fair and equitable while taking into consideration the financial impact, the unit's responsibility, and factors outside the unit's control. Allocations will be made to the RRC.

REASON FOR POLICY

To provide fair and equitable allocation of the obligations and payments made or received from litigation.

PROCEDURES

FORMS/INSTRUCTIONS

APPENDICES

FREQUENTLY ASKED QUESTIONS

CONTACTS

Subject
Contact
Phone
Fax/Email
Primary Contact(s)
612-626-9278
Insurance Questions
Steve Pardoe
612-625-0062
612-625-7384 (Fax)

DEFINITIONS

Judgment
Monetary amounts mandated by court or agency action.
Settlement
Agreement including a monetary payment to resolve a dispute between the University and another party.
Resource Responsibility Center (RRC)
Administrative level primarily responsible for preparing annual budgets and monitoring actual performance throughout the year.

RESPONSIBILITIES

General Counsel
Provide legal expertise to the Controller, Treasurer, and Resource Responsibility Centers to support the implementation of the policy.
Chief Financial Officer
After consultation with the Executive Vice President and Provost, decide how allocation of financial obligations or payments received from litigation to university units will be made in instances not covered by insurance.
Resource Responsibility Center
Decide if the financial obligations or payments received from litigation will be distributed to other units within their organization.

RELATED INFORMATION

HISTORY

Amended:
November 2013 - Comprehensive Review, Minor Revision. Clarified Statement, Reason, Definitions and Responsibilities. Updated Contacts section, ownership and Responsible Officer.
Effective:
September 1998
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