§ 5606 - Indemnification of employees - Vermont Statutes

§ 5606. Indemnification of employees

(a) In any action defended by the attorney general or the attorney general's designee in which a judgment is rendered against an employee of the state for acts or omissions within the scope of his or her employment, or a settlement requires payment by such a person, and the right of action is based upon Title 42, United States Code, section 1983, or under a similar federal statute where state law is incapable of establishing employee immunity, the state shall indemnify the employee for the amount of the employee's liability.

(b) The maximum liability of the state under this section shall be $250,000.00 to any one person and the maximum aggregate liability shall be $1,000,000.00 to all persons arising out of each occurrence.

(c) Notwithstanding subsection (a) of this section, no indemnification shall be paid:

(1) for a judgment or settlement which results from gross negligence or willful misconduct; or

(2) for a settlement not approved by the attorney general or the attorney general's designee; or

(3) if the employee did not ensure that the attorney general had timely notice of the action or the employee did not cooperate in the defense of the action.

(d) Upon certification by the attorney general to the commissioner of finance and management that an employee is eligible for indemnification under this section, the commissioner shall issue a warrant for payment against funds available to the employee's department or agency. If the attorney general believes there is reasonable doubt about whether the officer or employee is eligible for indemnification, the attorney general shall refer the matter to the labor relations board which may decide the matter. The decision of the board shall not be subject to appeal. (Added 1989, No. 114, § 5, eff. June 20, 1989; amended 1989, No. 114, § 11(b).)