Procedure for Processing and Resolving Claims Against MnSCU Institutions
#LBR0002

Purpose: To outline the responsibilities of the colleges and universities and various divisions within the System Office regarding the processing and resolution of claims within MnSCU institutions and to insure that adequate consultation and communication occur between the colleges/universities and the System Office. This procedure emphasizes that primary decision-making and fiscal responsibility reside at the institution level, with oversight at the chancellor=s office to consider system wide implications. This is a MnSCU procedure, not a personnel/labor relations procedure. It is included in this manual since it is the base document for the grievance processing procedure.

Affected Colleges/Universities: All MnSCU colleges and universities and MnSCU system office.

Authoritative References: MnSCU/State of Minnesota collective bargaining agreements with MCCFA, IFO, UTCE, MSUAASF, AFSCME, MAPE, MMA and MNA, U.S.EEO Commission, Minnesota Department of Human Rights, U.S. Department of Education laws, statutes, and regulations.

I. NOTIFICATION OF LEGAL ACTIONS.

1. Notice to Institutions, System Office and the Attorney General. The college or university needs to notify appropriate individuals at the MnSCU System Office whenever a legal action (including any lawsuit in court or with an administrative law judge; any charge filed with the U.S. Equal Employment Opportunity Commission or the Minnesota Department of Human Rights; or any inquiry from the U.S. Department of Education) has been filed against the institution. The institution should keep the System Office reasonably informed of the progress of the action, charge, or claim. If the matter involves an employee, please contact the vice chancellor for personnel, the vice chancellor for labor relations or the associate vice chancellor for equal opportunity (for discrimination matters). The MnSCU Personnel, Labor Relations and Equal Opportunity divisions will work together to coordinate the System Office response. If the matter involves a student, please notify the associate vice chancellor for student affairs. If the System Office receives notice of any legal action, it shall similarly notify appropriate individuals at the institution and the assistant attorney general who is designated to represent that institution.

The college/university should also notify its designated assistant attorney general immediately if you received a Summons and Complaint in any matter or Human Rights/EEOC charge. Please send the designated attorney a copy of any papers you received immediately (FAX: 612-296-7438). There is generally a limited time for response and failure to respond in a timely manner could result in a default judgement against the institution. The attorney will notify the institution and the System Office of any such action if the attorney receives a claim directly.

2. Contact from an Attorney. If anyone at the institution has been contacted by an attorney or investigator from an attorney=s office about any matter, please notify the designated assistant attorney general immediately. This will help protect the institution from inadvertently assisting a lawyer in a claim against you.

3. Grievances. An institution should notify its designated contact in the MnSCU Labor Relations unit when an employee grievance is filed. In accordance with the various collective bargaining agreements for faculty and classified staff, preparation of grievance responses at the college/university level and any decisions pertaining to institution-level settlements are the responsibility of the president or designee, after consultation with the MnSCU Labor Relations staff. However, all grievance settlements involving payments of money require the approval of either MnSCU Labor Relations (for faculty grievances) or the Department of Employee Relations (for grievances involving classified employees). (See Section III below.) If a grievance is appealed to the system-level step of the applicable contractual procedure, MnSCU Labor Relations will prepare the official employer response. MnSCU Labor Relations has authority to negotiate a settlement, but only after consultation with the president of the institution, as well as Personnel/Academic Affairs/Equal Opportunity, as needed.

4. Human Rights/EEOC Charge or Other Contact from the Federal Government. If an institution receives a notice that a claim has been filed with the Minnesota Department of Human Rights or the U.S. Equal Employment Opportunity Commission (EEOC), notify the Associate Vice Chancellor for Equal Opportunity, and your designated Assistant Attorney General. There is a short time period for response and these individuals can assist with the preparation of your response. Similarly, notify your attorney immediately if you are contacted by the United State Department of Education or other federal agency. Your attorney will work with you in crafting the institution=s response.

5. Notice of Claim and Lawsuits Covered by the Risk Management Plan. MnSCU has insurance for certain claims (e.g., typical Aslip and fall@ or other negligence cases) through the Risk Management Plan, operated by the Minnesota Department of Administration. For covered claims, you must file a notice of claim, as provided by the Risk Management Division. Each institution should have a designated representative to process the claims. If you are not sure whether the claim is covered, check with Risk Management (612) 215-1699) and /or your designated Assistant Attorney General.

6. Lawsuits. Notify the designated Assistant Attorney General immediately if an institution receives a Summons and Complaint in any matter or other legal document indicating a court matter.

II. FINANCIAL RESPONSIBILITY

1. Damages/Settlement Amount. The college or university has primary responsibility for payment of damage awards or amounts of settlements. There may be special circumstances, including cases of financial hardship, where a President and the Chancellor may negotiate a possible contribution from system wide funds. Special circumstances may include cases where the system wide implications of a case cause the Chancellor to disagree with the recommendation of the President.

2. Charge-Back for Legal Services and Litigation Expenses. The college or university has primary responsibility for litigation expenses and for attorney time spent on litigation arising from conduct relating to the institution, consistent with paragraph (1) of this section.

3. Grievance Settlements and Arbitration Awards. The college or university also has primary responsibility for payment of employee grievance settlements or arbitration awards in a manner consistent with paragraph (1) of this section.

III. SETTLEMENT AUTHORITY

The college or university President has the authority to settle any claim brought against his/her institution, subject to approval by the Chancellor or Executive Vice Chancellor in all cases having system-wide consequences, which could include labor relations implications, financial impact, or other precedential effects of the settlement. The System Office must be consulted in all cases before a settlement offer is proposed, accepted, or otherwise agreed to, so that the System Office may provide assistance and determine if there are system-wide implications.

For actual and potential lawsuits, you must also consult with your Assistant Attorney General before entering into any settlement discussions. The Assistant Attorney General must review any settlement documents (unless the matter is handled by Risk Management).

Grievances. The college or university President also has authority to settle employee grievances at an institution-level step in a contractual grievance procedure, but only after consultation with the MnSCU Labor Relations staff to determine any system wide implications in the pending grievance or proposed settlement. All step 3 grievances and any monetary grievance settlements require the approval of either MnSCU Labor Relations (for grievances involving faculty) or the Department of Employee Relations (for grievances involving classified employees). MnSCU Labor Relations must seek the advice and recommendation of the President of the institution before settling any grievance.

To summarize: Before any claim or grievance is settled, an institution must consult with the appropriate MnSCU System Office staff. Where approval of a settlement is necessary, the institution must obtain the approval of the Chancellor or Executive Vice Chancellor.

Effective Date: This procedure is effective on March 20, 1997 and applies to all claims/grievances pending on that date.