Can I Be Sued? AIC Newly Elected Officials Training

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1 AIC Newly Elected Officials Training

2 Two of the most common insurance questions local government officials ask: Can I be sued? Am I covered?

3 Am I personally liable? Generally, state tort immunity laws require that judgment for damages be paid by the governmental entity. Provided, your claim arose out of an act within the scope of your employment.

4 What should I do if I m sued? Beware the shotgun approach Immediately give it to your county clerk and legal counsel. It should be submitted to your insurance carrier. Follow up to make sure it happens.

5 Is there a difference between being sued individually as a public official versus being sued in a personal capacity? You are usually being sued for acts committed within the course and scope of your office

6 Is there a difference between being sued individually as a public official versus being sued in a personal capacity? Local government insurance policies should cover you in your official capacity Not if your actions were criminal Not if they would be considered outside the course and scope of employment.

7 Do I have to get my own lawyer? Usually no. Generally, your insurance company will defend you under your local government insurance policy.

8 Do I have to get my own lawyer? If your actions fall outside the scope of insurance policy coverage If your alleged actions were criminal You many need to retain your own attorney.

9 Who pays the attorney? If the claim is accepted by the insurance company, it will confirm coverage in writing. It will provide defense costs per the insurance contract. If your local government hired an attorney, they will.

10 Do I have a choice in lawyers? Probably not. Typically, attorneys who specialize in defending local governments will defend you.

11 Do I have a choice in lawyers? If there might be conflict of interest with you and another defendant, each of you may have separate counsel, at the insurance company s expense.

12 Who pays my expenses associated with the lawsuit? Meals, travel time, lost time from work, may not be covered. Sometimes your local government may elect to reimburse you.

13 Why am I defended by one law firm and other people are defended by another law firm? To avoid any conflict of interest between co-defendants. This expense is normally paid for by the insurance company.

14 Will I have a say in proposed out-ofcourt settlements? There will be communication regarding the case. Typically a lot. The decision on whether or not to settle may contractually rest with the insurance company.

15 Why are out-of-court settlements made instead of going to trial? I want my day in court! No one wants to pay money it doesn t need to. Sometimes, even if you believe your actions were correct, a judge or jury may have a different view based on application of relevant law to the facts presented.

16 Why are out-of-court settlements made instead of going to trial? I want my day in court! Often the question is one of liability, which may be a complicated legal issue. Credibility of witnesses, adverse publicity and other factors may need to be considered.

17 If I m found liable and damages are awarded, who pays them? Claims covered under an insurance policy are paid directly by the insurance company to the plaintiff. If there is no coverage, the governmental entity must make payment to the plaintiff. Typically you do not use your own money to pay a judgment against you.

18 What if the insurance company denies coverage? Insurance determination will be in writing, whether there is or isn t coverage Sometimes, if coverage is uncertain, they will defend you but reserve the right to deny coverage later.

19 What if the insurance company denies coverage? If the insurance company denies coverage and defense, your governmental entity may choose to do so. However, only if it thinks the claim arose out of an act committed within the course and scope of your duties.

20 What if my county says I was acting outside the scope of my duties? You will need to retain your own legal counsel. If a jury finds you were within your scope of duties, your local government will have to pay any judgment rendered against you.

21 What if my county says I was acting outside the scope of my duties? If a jury finds you were NOT within your scope of duties, YOU must pay the judgment, fees and other costs associated with your defense.

22 What about punitive damages? These are damages intended to punish the wrongdoer. State laws provided these damages cannot be paid by the local government, but must be paid by the person who committed the offense.

23 What about punitive damages? You may have to pay these yourself. Depending on state law, insurance companies may not be liable if payment has been determined to be against public policy. Most insurance companies exclude coverage for payment of punitive damages.

24 What can I do to protect myself? Do you best work. Follow policies and procedures. Stay within state and federal boundaries as well as any job descriptions. Keep and maintain accurate records and documents.

25 What can I do to protect myself? There are some immunities for local governments, and local government officials. Typically, these won t cover you if you intentionally harm someone.

26 What can I do to protect myself? Work with you local insurance agent to find insurance for local governments with a strong record of defense and broad coverage.

27 What can I do to protect myself? Questions?

28 What can I do to protect myself? Thank you!