42.007 - Exemplary and punitive damages: Limitations on liability by employer for wrongful act of employee; exception. - Nevada Statutes

42.007  Exemplary and punitive damages: Limitations on liability by employer for wrongful act of employee; exception.

      1.  Except as otherwise provided in subsection 2, in an action for the breach of an obligation in which exemplary or punitive damages are sought pursuant to subsection 1 of NRS 42.005 from an employer for the wrongful act of his or her employee, the employer is not liable for the exemplary or punitive damages unless:

      (a) The employer had advance knowledge that the employee was unfit for the purposes of the employment and employed the employee with a conscious disregard of the rights or safety of others;

      (b) The employer expressly authorized or ratified the wrongful act of the employee for which the damages are awarded; or

      (c) The employer is personally guilty of oppression, fraud or malice, express or implied.

Ê If the employer is a corporation, the employer is not liable for exemplary or punitive damages unless the elements of paragraph (a), (b) or (c) are met by an officer, director or managing agent of the corporation who was expressly authorized to direct or ratify the employee’s conduct on behalf of the corporation.

      2.  The limitations on liability set forth in subsection 1 do not apply to an action brought against an insurer who acts in bad faith regarding its obligations to provide insurance coverage.

      (Added to NRS by 1995, 2668)