TROY — The city is prepared to approve an $850,000 settlement for a worker who fell off a ladder during preparations for the demolition of the former Leonard Hospital. However, the contractor’s insurance carrier agreed to indemnify the city, a city official said.
A lawsuit filed by Perez Vargas claims he fell from a ladder and suffered several injuries on Sept. 25, 2020 while working for the city’s asbestos contractor, according to information provided to the City Council in advance of Thursday’s meeting.
It is the third lawsuit involving the former hospital that has resulted in payments totaling $2.27 million.
The city could have sold the long vacant hospital property at 74 New Turnpike for $1 in 2017 to The Community Builders, but the council rejected the deal. The city awarded a contract of about $1.6 million in June 2019 to raze the building and clear the 6.43-acre site for redevelopment. The city still owns the property, according to the city assessor’s office land records.
Corporation Counsel Richard Morrissey told the council that “the contractor’s general liability insurance carrier assumed the defense of the case and agreed to indemnify the City.”
He said a mediation was held June 1 when the parties agreed to the $850,000 total settlement. The carrier participated in the mediation and agreed to pay the settlement under which the city’s out-of-pocket liability is zero, said Morrissey, who recommended approval.
“By the terms of the settlement, the case will be discontinued in its entirety and the proceeding will be dismissed with prejudice upon payment of the agreed sum. There will be no admission of liability or fault on the part of any of the defendants. In addition, each party will be responsible for its own costs and attorney’s fees, and the defendants will be released from all further liability,” Morrissey advised the council.
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