CITY TO PAY $11 MILLION SETTLEMENT; MONEY TO GO TO PARALYZED MAN'S CARE.

Byline: Deborah Sullivan Daily News Staff Writer

A Los Angeles man paralyzed when he was hit by an LAPD patrol car was awarded an $11 million settlement Friday by the city - its largest personal-injury payout, officials said.

The 1997 collision left Pedro Espinoza conscious, aware of his surroundings and able to feel pain, but also unable to speak, nearly motionless and totally dependent on others for his care, a city report said.

He has required nearly $2 million in medical care so far, and his rehabilitation expenses, at $32,000 a month, will cost millions more over his life, the report said.

The Los Angeles City Council voted unanimously for the settlement. Espinoza demanded $16.7 million from the city to pay for a lifetime of round-the-clock care.

In an effort to avoid such large payouts, the city is formulating a risk management system to prevent incidents that lead to such liability.

Going to trial on such a case would have cost the city more, said Thomas C. Hokinson, chief assistant city attorney for litigation.

``This individual sustained very serious injuries and as a result of that, it's a very large exposure case,'' Hokinson said. ``This is a case where a jury would have found the city liable.''

The injury occurred on the morning of Oct. 4, 1997, at the intersection of 6th Street and Burlington Avenue downtown, the council report stated. After Officer Melissa Murguia turned west onto 6th Street from the southbound lane of Burlington, she began accelerating to 15 to 20 miles per hour.

Espinoza was walking southbound in the crosswalk, and Burlington swerved to avoid him, the report said.

``She just didn't see the man in the crosswalk until it was too late,'' said Senior Assistant City Attorney Dan Woodard.

Struck by Murguia's squad car, the 51-year-old divorced father of four grown children was thrown 30 feet in the air and landed on his head.

Now he is able to communicate with slight shakes or nods of his head, has limited movement in his left arm and fingers, and communicates using a keyboard-operated voice simulator machine.

He might someday use a motorized wheelchair, but requires constant care that his experts state will cost $6.3 million for the rest of his life. City experts calculated the cost would be one-third less - because his injuries are likely to shorten his life.

The city's settlement of $11 million will be paid out in three installments of $7 million, $3 million and $1 million, respectively.

Councilman Joel Wachs said he was reassured that the payment will go toward an annuity, which will pay Espinoza's bills.

``I had a lot of concerns, because I want to make sure the money is going to the man, who is a quadriplegic, and not to his heirs,'' Wachs said. ``So often a lump-sum payment doesn't last long.''

However, Hokinson said the incident does not cast a shadow on the city's risk-management efforts.

``The individual case in and of itself does not reflect on the risk-management policy,'' he said. ``We have been very aggressive on that issue, and are taking steps to preclude this.''