Hayward Police Department settles harassment case for 5 million dollars:
The lawsuit was settled through the city's insurance companies, which are responsible for paying it. City officials said the settlement will have no effect on the city's general fund or income from Measure A, a utility users tax approved in May.
City Attorney Michael Lawson estimated that the city spent about $500,000 on the case since it was brought forward in November 2007.
Casper said the amount of the settlement indicated the insurance companies "recognized the problems the city has historically had with women being treated fairly at the police department. Close to $5 million is not an amount paid unless someone has recognized years of wrongdoing."
Surprisingly, the amount was paid through an insurance company. Many cities are self-insured, but perhaps Hayward was small enough to get an outside insurance policy. Even though the city paid the settlement monies through an insurance company, taxpayers will still suffer (beyond the half a million dollars spent on legal fees). After all, the insurance company will raise the city's insurance rates, and the higher premiums will be paid by taxpayers.