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In calculating whether the aggregate limit has been met, city co-payments are <br /> not included,but city deductible obligations are. For example, for a city that <br /> qualifies for the land use incentive, in order to exhaust the $1 million <br /> aggregate limit a city would have to incur total litigation costs of$1,556,250. <br /> For a city that does not qualify for the incentive, a city would have to incur <br /> total litigation costs of$1,562,500 in order to exhaust the $1 million aggregate <br /> limit. In either case, if the city's coverage was subject to a$25,000 deductible, <br /> the maximum amount LMCIT would actually pay would be $975,000. <br /> 3. Litigation procedures <br /> Coverage for land use and special risk litigation is triggered when the <br /> litigation is first filed or served on the city. Litigation counsel is selected by <br /> mutual agreement between the city and LMCIT. Decisions on settlement and <br /> strategy are also made by mutual agreement, in consultation with the attorney <br /> the city and LMCIT have agreed to retain. <br /> a. When to report litigation <br /> Coverage for land use regulation, development, franchising, enterprise <br /> authority, or city debt obligation disputes is triggered when the litigation is <br /> first filed or served on the city. Cities should report the litigation to LMCIT <br /> immediately upon filing or being served with the summons and complaint that <br /> formally commences the litigation. <br /> If the city is the plaintiff, the matter should be reported to LMCIT before the <br /> litigation is commenced, or as soon as the city becomes aware its ordinance's <br /> constitutionality or interpretation is being challenged. Litigation must be <br /> reported to LMCIT no later than one year after the litigation commences in <br /> order for coverage to apply. <br /> Even if there is the likelihood of litigation, LMCIT encourages cities to report <br /> it before the litigation is formally commenced. While general legal advice <br /> from the city attorney is not normally considered part of the litigation costs, it <br /> is possible the city could incur some litigation-related costs in anticipation of <br /> the litigation. If the city incurs litigation costs before reporting the actual or <br /> anticipated litigation to LMCIT, those costs will be reimbursed at 50 percent. <br /> b. Selection of counsel <br /> Litigation counsel is selected by mutual agreement between the city and <br /> LMCIT. If in some unusual circumstance an agreement cannot be met, <br /> LMCIT will give the city a list of five qualified attorneys who are experienced <br /> in that type of litigation. The city then can select any of the five. <br /> 82 <br />