First Regular Session 112th General Assembly (2001)


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     HOUSE ENROLLED ACT No. 1307



     AN ACT to amend the Indiana Code concerning civil procedure.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 34-13-2-1; (01)HE1307.1.1. -->     SECTION 1. IC 34-13-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. A present or former public employee, including a member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity, is not personally liable on contracts entered into within the scope of the employee's employment for a governmental entity unless it is clearly otherwise indicated in writing.
SOURCE: IC 34-13-3-5; (01)HE1307.1.2. -->     SECTION 2. IC 34-13-3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Civil actions relating to acts taken by a board, a committee, a commission, an authority, or another instrumentality of a governmental entity may be brought only against the board, the committee, the commission, the authority, or the other instrumentality of a governmental entity. A member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity may not be named as a party in a civil suit that concerns the acts taken by a board, a committee, a commission, an authority, or another instrumentality of a governmental entity where the member was acting within the scope of the member's employment. For the purposes of this subsection, a member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity is acting within the scope of the member's employment when the member acts as a member of the board,

committee, commission, authority, or other instrumentality.
    (b)
A judgment rendered with respect to or a settlement made by a governmental entity bars an action by the claimant against an employee, including a member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity, whose conduct gave rise to the claim resulting in that judgment or settlement. A lawsuit alleging that an employee acted within the scope of the employee's employment must be exclusive to the complaint and bars an action by the claimant against the employee personally. However, if the governmental entity answers that the employee acted outside the scope of the employee's employment, the plaintiff may amend the complaint and sue the employee personally. An amendment to the complaint by the plaintiff under this subsection must be filed not later than one hundred eighty (180) days from the date the answer was filed and may be filed notwithstanding the fact that the statute of limitations has run.
    (b) (c) A lawsuit filed against an employee personally must allege that an act or omission of the employee that causes a loss is:
        (1) criminal;
        (2) clearly outside the scope of the employee's employment;
        (3) malicious;
        (4) willful and wanton; or
        (5) calculated to benefit the employee personally.
The complaint must contain a reasonable factual basis supporting the allegations.
    (c) (d) Subject to the provisions of sections 4, 14, 15, and 16 of this chapter, the governmental entity shall pay any judgment, compromise, or settlement of a claim or suit against an employee when:
        (1) the act or omission causing the loss is within the scope of the employee's employment, regardless of whether the employee can or cannot be held personally liable for the loss; and
        (2) the:
            (A) governor in the case of a claim or suit against a state employee; or
            (B) governing body of the political subdivision, in the case of a claim or suit against an employee of a political subdivision;
        determines that paying the judgment, compromise, or settlement is in the best interest of the governmental entity.
    (d) (e) The governmental entity shall provide counsel for and pay all costs and fees incurred by or on behalf of an employee in defense of a claim or suit for a loss occurring because of acts or omissions within the scope of the employee's employment, regardless of whether the

employee can or cannot be held personally liable for the loss.
    (e) (f) This chapter shall not be construed as:
        (1) a waiver of the eleventh amendment to the Constitution of the United States;
        (2) consent by the state of Indiana or its employees to be sued in any federal court; or
        (3) consent to be sued in any state court beyond the boundaries of Indiana.

SOURCE: IC 34-13-3-20; (01)HE1307.1.3. -->     SECTION 3. IC 34-13-3-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 20. (a) A political subdivision may purchase insurance to cover the liability of itself or its employees, including a member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity. Any liability insurance so purchased shall be purchased by invitation to and negotiation with providers of insurance and may be purchased with other types of insurance. If such a policy is purchased, the terms of the policy govern the rights and obligations of the political subdivision and the insurer with respect to the investigation, settlement, and defense of claims or suits brought against the political subdivision or its employees covered by the policy. However, the insurer may not enter into a settlement for an amount that exceeds the insurance coverage without the approval of the mayor, if the claim or suit is against a city, or the governing body of any other political subdivision, if the claim or suit is against such political subdivision.
    (b) The state may not purchase insurance to cover the liability of the state or its employees. This subsection does not prohibit any of the following:
        (1) The requiring of contractors to carry insurance.
        (2) The purchase of insurance to cover losses occurring on real property owned by the public employees' retirement fund or the Indiana state teachers' retirement fund.
        (3) The purchase of insurance by a separate body corporate and politic to cover the liability of itself or its employees.
        (4) The purchase of casualty and liability insurance for foster parents (as defined in IC 27-1-30-4) on a group basis.
SOURCE: IC 34-13-4-1; (01)HE1307.1.4. -->     SECTION 4. IC 34-13-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. If a present or former public employee, including a member of a board, a committee, a commission, an authority, or another instrumentality of a governmental entity, is or could be subject to personal civil liability for a loss occurring because of a noncriminal act or omission

within the scope of the public employee's employment which violates the civil rights laws of the United States, the governmental entity shall, subject to IC 34-13-3-4, IC 34-13-3-14, IC 34-13-3-15, and IC 34-13-3-16, pay any judgment, compromise, or settlement of the claim or suit when:
        (1) the governor, in the case of a claim or suit against a state employee; or
        (2) the governing body of the political subdivision, in the case of a claim or suit against an employee of a political subdivision;
determines that paying the judgment, compromise, or settlement is in the best interest of the governmental entity. The governmental entity shall also pay all costs and fees incurred by or on behalf of a public employee in defense of the claim or suit.

SOURCE: ; (01)HE1307.1.5. -->     SECTION 5. An emergency is declared for this act.


HEA 1307 _ Concur

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