06.n Scandia Co-Pay and Deductible letter 2021 12 2
Direct Dial 612-618-5391
jsather@lmc.org
December 2, 2021
Ken Cammilleri, City Administrator
City of Scandia
14727 209th St. N.
Scandia, MN 55073
RE: Trust Member: City of Scandia
Claimant: Big Marine Lake Development LLC
Our File: GL92184
Dear Mr. Cammilleri,
As you know, this case has come to an end. Plaintiff contested the City of Scandia’s denial of their
application for an amendment to the Conditional Use Permit and Development Agreement seeking
permission to add ten floating watercraft docking spaces to the marina. The City succeeded on a
motion for summary judgment at the district court. The Minnesota Court of Appeals affirmed that
decision and plaintiffs did not seek further review. Therefore, the litigation is over and the City
prevailed. In defending this matter, LMCIT incurred litigation costs (legal defense costs) of
$99,911.89. As the prevailing party, we recovered $2,780.00 in costs, making our total litigation
costs incurred $97,131.90.
As per our letter of August 8, 2019, LMCIT handled this claim as Land Use and Special Risk
Litigation. The coverage agreement states that LMCIT will pay 85% of the first $250,000 of
litigation costs which are incurred after the litigation has been reported to LMCIT. The amount
LMCIT pays for litigation costs for Land Use and Special Risk Litigation is subject to the
Municipal Liability Deductible shown in the Municipal Liability Declarations.
The claim was handled under the City’s Covenant Number CMC 1000732 with a coverage period
from January 1, 2019-January 1, 2020. Under this covenant, there is a Municipal Liability
Deductible of $1,000 per occurrence.
Ken Cammilleri
12-2-2021
Page 2
The city’s responsibility is as follows:
15% of the first $250,000 in litigation cost = $14,569.78
Deductible = $1,000.00
Total = $15,569.78
Please issue a check for $15,569.78 payable to LMCIT and forward it to this office. Please attach
a copy of this letter with your check or reference our file number of GL92184 on the check.
Payment is due by January 2, 2022. If you have any questions, feel free to contact me at 612-618-
5391 or jsather@lmc.org.
Very truly yours,
Jeanna Sather
Claims Supervisor
cc: Jane Dreyer, Security State Agency