Item Number: 24
City Council / Board of Directors
Written Communications
Meeting of: July 21, 2026
Submitted By:
Keith C. Metzler, City Manager
Subject:
Support Legislation Efforts to Pursue Tort and Proportionate Liability Reform Recommendation:
That the Honorable City Council support legislation efforts to pursue Tort and Proportionate Liability Reform by authorizing the Mayor to sign letters of support.
Fiscal Impact:
There is no fiscal impact associated with this item.
Strategic Plan Goal:
Strategic Plan Goal A - Financial Stability: Foster fiscal health through disciplined long- term planning, cost control, increased revenues, and cost recovery. Tort Reform Initiatives, if enacted, would support financial stability for the City of Victorville by controlling the rising costs of liability claims and insurance premiums.
Background:
Liability claims continue to have a significant financial impact on California public agencies and their ability to deliver essential services to the communities they serve.
Large liability losses continue to drive up the cost of risk, place significant strain on the public agency insurance market, and, in some cases, threaten the long-term financial stability of local governments. Plaintiffs’ lawyers take between 30% to 50% of every taxpayer-funded dollar paid for settlements or awards. Scarce public resources intended for fire stations, police officers, parks & libraries, classrooms, and social-safety-net programs are being converted to law firm profits.
The California Association of Joint Powers Authorities (CAJPA) collected and analyzed liability data from nearly 2,000 California public entities (valued as of September 30, 2024) to measure the impact of these losses. The findings of the 2026 study are attached to this staff report.
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The most recent analysis showed that among the participants submitting data, claims have tripled over the past seven years, increasing from approximately $451million to $1.27 billion, with annual claims projected to reach $2.1 billion annually by 2027-28.
Additional findings include:
•Public entity liability insurance premiums continue to increase at an unsustainable pace.
•Claims filed against California public entities have increased 23% over the past 10 years
•The number of claims over $1 million increased by 66% between 2014-15 and 2021- 2022
•The average value of closed claims more than doubled between 2018-19 to 2023-24 •Taxpayer-funded liability claims payments tripled between 2018-19 and 2023-24 • Payments associated with claims exceeding $1 million nearly quadrupled from 2017- 18 to 2023-24
Discussion:
The City of Victorville has received requests to support and advocate for the Legislature to enact comprehensive tort and proportionate liability reform initiatives that protect taxpayer dollars and help ensure public funds are not diverted away from public services including police, fire, roads, libraries, parks and other community services.
Tort liability refers to the legal responsibility of a person or entity, including a public agency, to compensate another party for harm or damages resulting from negligence or other civil wrongdoing. Proportionate liability is the legal principle that allocates responsibility for damages based on each party’s percentage of fault, rather than holding one party responsible for the entire amount of damages regardless of its level of responsibility.
Supporting these initiatives will help advance meaningful reform while demonstrating to statewide local government organizations and the California Legislature that cities, counties, and special districts are united in their commitment to preserving public resources and maintaining the long-term fiscal sustainability of local government.
Prepared By:
Sandra Bostick, Assistant Director of Human Resources
Attachments: A. 2026 Study Findings
B. Sample Letter - Coalition for Protecting Public Funds C. Sample Letter - Coalition to Protect Community Services D. Coalition to Protect Community Services Fact Sheet
E. Case Studies for Proportionate Liability