Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 160]

EXTRACTED TEXT FROM PAGE:

1983]

UNIVERSITY OF ILLINOIS

151

alleged malpractice in connection with heart surgery performed at the University of Illinois Hospital. T h e defendants are Dr. Sidney Levitsky and Dr. John Grow; and the University is supplying their defense under our Risk Management Program. T h e plaintiff is a twenty-eight year old married woman with two children, has had a mitral valve replacement, the implantation of permanent pacemaker wires, and has a history of recurring infections. T h e plaintiffs attorney's original demand was for $1.5 million. T h e firm of Baker & McKenzie has been engaged as special counsel and has advised that while the case is defensible, an adverse verdict is probable. T h e final pretrial conference is set for March 2, 1983, and it is anticipated that the trial will be set shortly thereafter. Special counsel has recommended that authority be given to settle the litigation for an amount not to exceed $150,000 and that, if possible, a structured settlement be negotiated. While there is no firm commitment that the plaintiff will accept the settlement as proposed, it is essential that, if approved, the special counsel be advised in advance of the March 2 final pretrial conference. T h e recommendation of special counsel is supported by the unvcrsity counsel and by the Risk Management Policy and Hospital Professional Liability Committees. The acting vice president for business and finance recommends that authority be granted to settle this matter for an amount not to exceed $150,000. Funds are available in the University's Risk Management accounts. I concur.

On motion of Mr. Madden, authority was given as recommended by the following vote: Aye, Mrs. Day, Dr. Donoghue, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Logan, Mr. Madden, Mr. Stone; no, none; absent, Mrs. Shepherd, Governor Thompson. (The student advisory vote was: Aye, Mr. Bandala, Miss Forsyth; no, none; absent, Mr. Cobb.)

Settlement of Claims with Contractors for Pavilion Construction, Chicago

(3) On July 29, 1982, the Board of Trustees was informed that certain contractors involved in the construction of the Pavilion at the Chicago campus were asserting claims and threatening litigation against the University for additional costs alleged to have been caused by delays in site availability, by failure to coordinate the work properly, and by changes in and additions to the work. T h e project is now operational and only a few "punch list" items remain to be completed by one of the contractors. T h e board authorized the university counsel to employ special counsel to assist in opposing the claims and defending any litigation. Pora Construction Company claimed in excess of $600,000; Mississippi Valley Structural Steel Company claimed in excess of $70,000; Fullerton Plumbing and Heating, Inc., claimed in excess of $12,000; and Telander Bros. Contractors, Inc., claimed in excess of $14,000. Further, the construction manager, Pepper Construction Company, claimed in excess of $ 170,000 for extra services it alleged were attributable to substantial changes in the scope of the construction work and the resultant increase in the construction budget. As a result of extensive negotiations involving the contractors, the Office of Capital Programs, the university counsel and the University's special counsel, Rooks, Pitts, Fullagar and Poust, it has been determined that some of the items in question represented appropriate changes in, or additions to, the original scope of the work. Accordingly, change orders will be issued to Fullerton for $5,702.46 in settlement of its $12,144.45 claim and to Telander Bros, for $1,706.49 in settlement of its $14,001.00 claim. Funds for these change orders are available in the existing Pavilion construction budget, and no further allocation of funds is required.