The city of Scotts Valley faces a $72 million claim for defective roads after a car crash left a woman with multiple injuries and severe brain damage.
Dr. Margaret Khouri, 60, was injured after her car rolled off southbound Highway 17, south of Granite Creek Road, at 7:14 a.m. Nov. 10, 2009.
Members of the Scotts Valley City Council denied the claim at their meeting Wednesday, June 2, saying the city is not responsible for maintenance of Highway 17.
“There’s nothing for us to handle,” said Steve Ando, Scotts Valley’s city manager. “It happened on a state highway, not a city street.”
Khouri worked as a physician at Monterey Bay Gastroenterology in Santa Cruz before the crash, said her attorney, Mary Alexander. The claim was filed by Khouri’s conservator and guardian, Ann Bass.
Alexander has 180 days to follow up by filing a lawsuit.
According to the claim, the city failed to maintain safe road conditions and warn the public of those circumstances.
“The road contributed to her accident,” Alexander said. “Because of the roads, the car went off the highway.”
A witness reported that Khouri was traveling the 65-mph speed limit and had activated her windshield wipers and washer fluid, California Highway Patrol officer Sarah Jackson said. Khouri’s 2005 Lexus sedan then swerved off the highway onto an embankment and hit two trees before crashing into a fence and a parked car.
“There were lots of other cars on the road that didn’t run off it,” said Jackson, who was at the accident scene after it happened.
Jackson said there was a large dog in the car that was unrestrained.
“We don’t know if the dog was part of the distraction,” Jackson said.
The dog was not hurt and was placed in protective custody by animal control officers, Jackson said.
According to Alexander, $72 million would cover Khouri’s past, present and future medical care, loss of earnings and general damages for pain, suffering and disfigurement.
“She needs around-the-clock, 24-hour care for the rest of her life,” Alexander said.
Khouri’s injuries include a skull fracture, traumatic brain injury, vision impairment, fractures to her right ankle and right rib and multiple lacerations and contusions.
“I expect (the claim) to be successful,” Alexander said. “I hope to be able to make sure she’s taken care of in the future and that her medical bills and care will be paid.”

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