Title
Human Resources Department, Risk Management Division, recommending the Board approve and authorize the Chair to sign a budget transfer increasing revenue and appropriations by $3,250,000 in the General Liability Fund to finalize settlement in the matter of Ricky Davis v. County of El Dorado. (4/5 vote required)
FUNDING: General Liability Fund.
Body
DISCUSSION / BACKGROUND
On April 29, 2025, the Board approved a settlement in the case of Ricky Davis v. County of El Dorado, Case No. 2:22-cv-00262-DC-JDP (Davis) for $3,250,000. The settlement will be paid from the General Liability Program (subject to reimbursement from the County's excess insurance authority as discussed below). This budget transfer will allow for sufficient appropriations to fund the settlement.
PRISM is the County’s excess insurance authority. The General Liability Program Policy has a self-insured retention (SIR) of $1,000,000. The excess of the SIR will be reimbursed by PRISM in the amount of $2,250,000. PRISM will also reimburse the County costs incurred to date. These costs are estimated at $530,000 and will reduce the amount of fund balance required to be used for the settlement.
This case arose from the 2005 conviction of Mr. Davis for the 1985 murder of Jane Hylton. At the time of his conviction, Mr. Davis was already serving an unrelated federal sentence for bank robbery. In 2012, the Northern California Innocence Project investigated and secured an order for post-conviction DNA testing of evidence recovered from the scene of the crime. The testing confirmed the DNA found on Ms. Hylton was not from Mr. Davis. Mr. Davis filed a petition for writ of habeas corpus to vacate his conviction and, on April 15, 2019, the court reversed the conviction. After conducting a further investigation, the El Dorado County District Attorney stipulated to a dismissal of all charges against Mr. Davis and a finding of factual innocence. The Court granted the request and dismissed the charges on February 13, 2020, and Mr. Davis was released from custody.
Mr. Davis then brought a lawsuit in federal court against the County of El Dorado and two of its former Deputy Sheriffs. Mr. Davis alleged that the County’s actions violated his Constitutional rights, leading to his wrongful conviction and incarceration. The County and Mr. Davis participated in mediation with a federal judge and reached an agreement to settle the lawsuit for $3.25 million. The specific terms of the settlement have been memorialized in a settlement agreement, whereby Mr. Davis waived all claims against the County (and its former employees) and whereby the parties acknowledged that settlement does not constitute an admission of fault or concession of liability in connection with the claim.
ALTERNATIVES
Not approving the budget transfer would result in inadequate appropriations in the General Liability Fund, which would impair the County's ability to complete the settlement as agreed to between the parties.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is sufficient fund balance for this settlement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon Board approval, obtain Board Chair signature on the attached Budget Transfer and forward to the Auditor’s Office for final processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joseph Carruesco, Director of Human Resources