§ 143-300.4. Grounds for refusal of defense. - North Carolina Statutes

§ 143‑300.4. Grounds for refusal of defense.

(a)        The State shall refuse to provide for the defense of a civilor criminal action or proceeding brought against an employee or former employeeif the State determines that:

(1)        The act or omission was not within the scope and course ofhis employment as a State employee; or

(2)        The employee or former employee acted or failed to actbecause of actual fraud, corruption, or actual malice on his part; or

(3)        Defense of the action or proceeding by the State would createa conflict of interest between the State and the employee or former employee;or

(4)        Defense of the action or proceeding would not be in the bestinterests of the State.

(b)        The determinations required by subsection (a) of thissection shall be made by the Attorney General. The Attorney General maydelegate his authority to make these determinations to the chief administrativeauthority of any agency, institution, board, or commission whose employees areto be defended as provided by subdivision (3) or (4) of G.S. 143‑300.5.Approval of the request by an employee or former employee for provision ofdefense shall raise a  presumption that the determination required by thissection had been made and that no grounds for refusal to defend werediscovered. (1967, c. 1092, s.1.)