Documents seem to show the family of a child injured in a Cornelia drug raid received a million dollar settlement from Habersham County’s insurance company but County Manager Phil Sutton says that’s not the case.
2-year-old Bounkham Phonesavanh is still recovering from lacerations and burns to his face and chest that he suffered during a May 28, 2014 drug raid on a home on Lakeview Heights Circle in Cornelia. The family filed a lawsuit against the Habersham County Sheriff’s Department and other parties involved on February 3, 2015.
A document posted on the county’s website today – a draft agreement between the County Commission, County Attorney Donnie Hunt and Florida Attorney Lisa Pach- says the county’s insurance company (National Fire Insurance) already paid the Phonesavnhs a $1,000,000 settlement.
“NATIONAL FIRE and the HABERSHAM DEFENDANTS entered a Partial and Limited Settlement Agreement with the PHONSAVANH CLAIMANTS wherein in NATIONAL FIRE paid its One Million Dollars and 00/100 ($1,000,000.00) in applicable policy limits under the NATIONAL FIRE POLICY on behalf of the HABERSHAM DEFENDANTS to the PHONESAVANH CLAIMANT.”
County Manager Phil Sutton says the document is a case of cart before horse, “There are settlement negotiations going on right now but they’re not concluded. That would have to be heard in a court, a public hearing, and that has not happened. This agreement (the document) presupposes that would happen.”
The document outlines a scenario in which National Fire pays out its full limit of $1 million dollars for the May 2014 incident. If that were to happen – the county might still face additional legal bills resulting from the case and National Fire would not have to pay.
“As a result of the payment by NATIONAL FIRE to the PHONESAVANH CLAIMANTS of its One Million Dollars and 00/100 ($1,000,000.00) in applicable policy limits under the NATIONAL FIRE POLICY on behalf of the HABERSHAM DEFENDANTS, the NATIONAL FIRE POLICY is exhausted. Therefore, NATIONAL FIRE has no duty to defend or indemnify any insured entity against the PHONESAVANH COMPLAINT or any CLAIMS arising out of or relating to the May 28, 2014 Incident.”
Habersham County leaders don’t want that to happen so they drafted an agreement that would have National Fire pay up to $75,000 in defense costs beyond what their current policy allows. “They would agree to go beyond those limits to that extent to continue defense if it’s necessary,” Sutton says. “If there is a settlement then this (the side agreement) would go into effect. There are settlement discussions but they have not been concluded.”
Habersham County Commissioners will meet on Thursday this week to work on their legal defense agreement with National Fire. That meeting starts Thursday at 3PM in the Commission Conference Room at the old courthouse in downtown Clarkesville.
