§ 115C-43. Defense of board of education members and employees. - North Carolina Statutes

§ 115C‑43.  Defenseof board of education members and employees.

(a)        Upon request made by or in behalf of any member or employeeor former member or employee, any local board of education may provide for thedefense of any civil or criminal action or proceeding brought against himeither in his official or in his individual capacity, or both, on account ofany act done or omission made, or any act allegedly done or omission allegedlymade, in the scope and course of his duty as a member of or employee of thelocal board of education. The defense may be provided by the local board ofeducation by its own counsel, or by employing other counsel, or by purchasinginsurance which requires that the insurer provide the defense. Nothing in thissection shall be deemed to require any local board of education to provide forthe defense of any action or proceeding of any nature.

(b)        Any local board of education may budget funds for thepurpose of paying all or part of a claim made or any civil judgment enteredagainst any of its members or employees or former members and employees, whensuch claim is made or such judgment is rendered as damages on account of anyact done or omission made, or any act allegedly done or omission allegedlymade, in the scope and course of his duty as a member of the local board ofeducation or as an employee. Nothing in this section shall authorize any localboard of education to budget funds for the purpose of paying any claim made orcivil judgment entered against any of its members or employees or formermembers and employees if the local board of education finds that such member oremployee acted or failed to act because of actual fraud, corruption or actualmalice on his part. Any local board of education may budget for and purchaseinsurance coverage for payment of claims or judgments pursuant to this section.Nothing in this section shall be deemed to require any local board of educationto pay any claim or judgment referred to herein, and the purchase of insurancecoverage for payment of any such claim or judgment shall not be deemed anassumption of any liability not covered by such insurance contract, and shallnot be deemed an assumption of liability for payment of any claim or judgmentin excess of the limits of coverage in such insurance contract.

(c)        Subsection (b) of this section shall not authorize any localboard of education to pay all or part of a claim made or civil judgment enteredor to provide a defense to a criminal charge unless (i) notice of the claim orlitigation is given to the local board of education prior to the time that theclaim is settled or civil judgment is entered and (ii) the local board ofeducation shall have adopted, and made available for public inspection, uniformstandards under which claims made, civil judgments entered, or criminalcharges  against members or employees or former members and employees shall bedefended or paid. (1979, c. 1074, s.1; 1981, c. 423, s. 1.)