The Seattle City Attorney’s Office determined Sally Clark was on city business in Tacoma, with her insurance primary and the city’s obligation secondary. But her policy covered only up to $25,000.

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A $400,000 settlement has been reached with a man who sued former Seattle City Councilmember Sally Clark and the city of Seattle over a 2012 accident in which she collided with a bicyclist in Tacoma while driving to a speaking engagement.

The city is on the hook for $375,000 because Clark’s insurance covered only up to $25,000.

A lawsuit was filed last year in Pierce County Superior Court on behalf of Steve Fairbanks, who initially brought a $2.5 million claim against the city that preceded the suit.

Clark, who served on the council for nearly a decade, resigned last year to take a job with the University of Washington.

Fairbanks, a Pierce County resident at the time of the collision, suffered a severely broken left leg that was permanently deformed, his attorney, Molly Crowley, of Tacoma, said last year.

An electrician before the accident, Fairbanks had not been gainfully employed since the day of the incident, Crowley said at the time. As of last year, he lived in Oregon.

Fairbanks, who is in his mid-40s, suffered an open fracture with his leg at a 45-degree angle, said Crowley, who couldn’t be immediately reached Thursday.

The suit, which said Clark was performing official business at the time of the May 12, 2012, collision, alleged negligence on her part and sought unspecified monetary damages for personal and economic damages.

The settlement between Fairbanks, the city and Clark’s insurer was reached last month, according to a copy of the agreement, with no admission of liability on the part of the defendants.

The Seattle City Attorney’s Office determined in 2012 that Clark was on city business, with her insurance primary and the city’s obligation secondary. But because her policy covered up to $25,000 — the minimum required under Washington state law — the city will pay the balance.

At the time of the accident, Clark was on her way to speak to a class held by Out in Front, a local LGBTQ leadership program.

Fairbanks was riding a bicycle at about 9:15 a.m. on South Ninth Street in Tacoma, trying to get through South Market Street, when Clark’s Ford Escape turned left in his path, according to the claim and a police report.

Clark failed to yield the right of way, according to the lawsuit.

Clark, in a statement issued when the claim was filed, said she received and paid a citation.

She said she immediately notified her insurer and the city of the collision, describing it as an accident in which she didn’t see Fairbanks and a reminder of “how quickly something like this can happen.”

Clark also said she had not checked her insurance limits in a long time, was not proud of where they were at the time and urged people to check their coverage.

Clark now serves as director of regional and community relations at the UW. She declined Monday to comment on the settlement.