COMMISSION 
AGENDA MEMORANDUM                        Item No.          6c 
ACTION ITEM                            Date of Meeting       April 23, 2019 
DATE:     April 16, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Elizabeth Black, Senior Port Counsel 
SUBJECT:  OneBeacon Settlement 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to enter into a settlement
agreement in the form attached as Exhibit 1 with Lamorak Insurance Company and Bedivere 
Insurance Company, both formerly known as OneBeacon Insurance Company. 
EXECUTIVE SUMMARY 
The Port of Seattle was insured under two general liability insurance policies issued by
OneBeacon Insurance Company (now known as "Bedivere") from 1960-1962. The policies
themselves are considered lost, but Bedivere has provided defense coverage to the Port related
to environmental cleanup costs based on evidence that the policies likely existed. The
indemnity limit for each policy is $100,000, and Bedivere has paid the Port approximately $3.35
million in defense costs to date. This settlement agreement will release Bedivere from certain
future claims under the policies in exchange for a payment of $820,000. 
JUSTIFICATION 
Based on the lack of documentation regarding the policies, the low policy limits, and Bedivere's
participation in the Port's defense to date, the benefits of settlement at this time outweigh the
costs of pursuing the Port's claim further. 
DETAILS 
Further details will be presented by counsel in executive session on April 23, 2019. 
FINANCIAL IMPLICATIONS 
Revenue: Approximately $820,000. 
ATTACHMENTS TO THIS REQUEST 
(1)   Draft Settlement Agreement 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Briefing with counsel in executive session on April 23, 2019. 
Template revised September 22, 2016.