Schools Alliance for Workers Comp Excess II v. FresnoCounty Office of Ed.
This appeal challenges the trial courts interpretation of an agreement entered into between appellant, the Fresno County Superintendent of Schools, sued as the Fresno County Office of Education, and respondent, the Schools Alliance for Workers Compensation Excess II. Respondent is a self-funded Joint Powers Authority (JPA) that was formed to provide excess workers compensation insurance to its members. These members, public education agencies, make annual contributions to a risk pool to enable respondent to pay and handle all workers compensation excess claims against members. Under the Joint Exercise of Powers Agreement and the accompanying bylaws (Agreement), respondent has the power to assess members their pro rata share of necessary additional contributions.
After appellant withdrew as a member, respondent declared deficiency assessments for certain years in which appellant was a member. The invoices sent to appellant for these assessments went unpaid. Thereafter, respondent filed the underlying breach of contract action against appellant.
As discussed below, although the Agreement states that a reserve account shall be established for each withdrawing member, the establishment and exhaustion of such a reserve account is not a condition precedent to the obligation of a former member to pay an assessment. Further, the statute of limitations ran separately for each assessment invoice. Thus, the action is not time barred. Accordingly, the judgment affirmed.
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