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CHAPTER 32-12.1GOVERNMENTAL LIABILITY32-12.1-01. Legislative intent. This chapter creates additional powers and optional andalternative methods for the single and specific purpose of enabling political subdivisions to pay<br>and to compromise claims and judgments, to issue bonds to fund and satisfy the same, to levy<br>taxes in amounts necessary for such purposes without respect to limitations otherwise existing,<br>and to compromise judgments and make periodic payments on such compromised amount.32-12.1-02. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Claim&quot; means any claim permitted by this chapter brought against a political<br>subdivision for an injury caused by a political subdivision or an employee of the<br>political subdivision acting within the scope of the employee's employment or office.2.&quot;Commissioner&quot; means the insurance commissioner.3.&quot;Employee&quot; means any officer, employee, board member, volunteer, or servant of a<br>political subdivision, whether elected or appointed and whether or not compensated.<br>The term does not include an independent contractor, or any person performing<br>tasks the details of which the political subdivision has no right to control.4.&quot;Injury&quot; means personal injury, death, or property damage.5.&quot;Personal injury&quot; includes bodily injury, mental injury, sickness, or disease sustained<br>by a person, and injury to a person's rights or reputation.6.&quot;Political subdivision&quot;:a.Includes all counties, townships, park districts, school districts, cities, public<br>nonprofitcorporations,administrativeorlegalentitiesresponsibleforadministration of joint powers agreements, and any other units of local<br>government which are created either by statute or by the Constitution of North<br>Dakota for local government or other public purposes, except no new units of<br>government or political subdivisions are created or authorized by this chapter.b.Does not include nor may it be construed to mean either the state of North<br>Dakota or any of the several agencies, boards, bureaus, commissions,<br>councils, courts, departments, institutions, or offices of government which<br>collectively constitute the government of the state of North Dakota.7.&quot;Property damage&quot; includes injury to or destruction of tangible or intangible property.8.&quot;Public nonprofit corporation&quot; means a nonprofit corporation that performs a<br>governmental function and is funded, entirely or partly, by the state, a city, county,<br>park district, school district, or township.32-12.1-03. Liability of political subdivisions - Limitations.1.Each political subdivision is liable for money damages for injuries when the injuries<br>are proximately caused by the negligence or wrongful act or omission of any<br>employee acting within the scope of the employee's employment or office under<br>circumstances in which the employee would be personally liable to a claimant in<br>accordance with the laws of this state, or injury caused from some condition or use<br>of tangible property, real or personal, under circumstances in which the political<br>subdivision, if a private person, would be liable to the claimant. The enactment of a<br>law, rule, regulation, or ordinance to protect any person's health, safety, property, orPage No. 1welfare does not create a duty of care on the part of the political subdivision, its<br>employees, or its agents, if that duty would not otherwise exist.2.The liability of political subdivisions under this chapter is limited to a total of two<br>hundred fifty thousand dollars per person and five hundred thousand dollars for<br>injury to three or more persons during any single occurrence regardless of the<br>number of political subdivisions, or employees of such political subdivisions, which<br>are involved in that occurrence. A political subdivision may not be held liable, or be<br>ordered to indemnify an employee held liable, for punitive or exemplary damages.3.A political subdivision or a political subdivision employee may not be held liable<br>under this chapter for any of the following claims:a.A claim based upon an act or omission of a political subdivision employee<br>exercising due care in the execution of a valid or invalid statute or regulation.b.The decision to undertake or the refusal to undertake any legislative or<br>quasi-legislative act, including the decision to adopt or the refusal to adopt any<br>statute, charter, ordinance, order, regulation, resolution, or resolve.c.The decision to undertake or the refusal to undertake any judicial or<br>quasi-judicial act, including the decision to grant, to grant with conditions, to<br>refuse to grant, or to revoke any license, permit, order, or other administrative<br>approval or denial.d.The decision to perform or the refusal to exercise or perform a discretionary<br>function or duty, whether or not such discretion is abused and whether or not<br>the statute, charter, ordinance, order, resolution, regulation, or resolve under<br>which the discretionary function or duty is performed is valid or invalid.e.Injury directly or indirectly caused by a person who is not employed by the<br>political subdivision.f.A claim relating to injury directly or indirectly caused by the performance or<br>nonperformance of a public duty, including:(1)Inspecting, licensing, approving, mitigating, warning, abating, or failing to<br>so act regarding compliance with or the violation of any law, rule,<br>regulation, or any condition affecting health or safety.(2)Enforcing, monitoring, or failing to enforce or monitor conditions of<br>sentencing, parole, probation, or juvenile supervision.(3)Providing or failing to provide law enforcement services in the ordinary<br>course of a political subdivision's law enforcement operations.(4)Providing or failing to provide fire protection services in the ordinary<br>course of a political subdivision's fire protection operations.g.&quot;Public duty&quot; does not include action of the political subdivision or a political<br>subdivision employee under circumstances in which a special relationship can<br>be established between the political subdivision and the injured party. A special<br>relationship is demonstrated if all of the following elements exist:(1)Direct contact between the political subdivision and the injured party.(2)An assumption by the political subdivision, by means of promises or<br>actions, of an affirmative duty to act on behalf of the party who allegedly<br>was injured.Page No. 2(3)Knowledge on the part of the political subdivision that inaction of the<br>political subdivision could lead to harm.(4)The injured party's justifiable reliance on the political subdivision's<br>affirmative undertaking, occurrence of the injury while the injured party<br>was under the direct control of the political subdivision, or the political<br>subdivision action increases the risk of harm.4.This chapter does not obligate political subdivisions for an amount that is more than<br>the limitations upon liability imposed by this chapter. Subject to this chapter, any<br>payments to persons constitute payment in full of any compromised claim or<br>judgment or any final judgment under this chapter.5.Notwithstanding this chapter, a political subdivision or its insurance carrier is not<br>liable for any claim arising out of the conduct of a ridesharing arrangement, as<br>defined in section 8-02-07.6.A political subdivision is not liable for any claim based on an act or omission in the<br>designation, repair, operation, or maintenance of a minimum maintenance road if<br>that designation has been made in accordance with sections 24-07-35 through<br>24-07-37 and if the road has been maintained at a level to serve occasional and<br>intermittent traffic.32-12.1-04.Political subdivision to be named in action - Personal liability ofemployees - Indemnification of claims and final judgments.1.An action for injuries proximately caused by the alleged negligence, wrongful act, or<br>omission of an employee of a political subdivision occurring within the scope of the<br>employee's employment or office shall be brought against the political subdivision. If<br>there is any question concerning whether the alleged negligence, wrongful act, or<br>omission occurred within the scope of employment or office of the employee, the<br>employee may be named as a party to the action and the issue may be tried<br>separately.A political subdivision must defend the employee until the courtdetermines the employee was acting outside the scope of the employee's<br>employment or office.2.An employee shall not be personally liable for money damages for injuries when the<br>injuries are proximately caused by the negligence, wrongful act, or omission of the<br>employee acting within the scope of the employee's employment or office.3.No employee may be held liable in the employee's personal capacity for acts or<br>omissions of the employee occurring within the scope of the employee's<br>employment unless the acts or omissions constitute reckless or grossly negligent<br>conduct, or willful or wanton misconduct. An employee may be personally liable for<br>money damages for injuries when the injuries are proximately caused by the<br>negligence, wrongful act, or omission of the employee acting outside the scope of<br>the employee's employment or office.The plaintiff in such an action bears theburden of proof to show by clear and convincing evidence that the employee was<br>either acting outside the scope of the employee's employment or office or the<br>employee was acting within the scope of employment in a reckless, grossly<br>negligent, willful, or wanton manner.Employees may be liable for punitive orexemplary damages. The extent to which an employee may be personally liable<br>pursuant to this section and whether the employee was acting within the scope of<br>employment or office shall be specifically stated in a final judgment.4.A political subdivision shall indemnify and save harmless an employee for any claim,<br>whether groundless or not, and final judgment for any act or omission occurring<br>within the scope of employment or office of the employee. The indemnification shallPage No. 3be made in the manner provided by this chapter and shall be subject to the<br>limitations herein.32-12.1-05.Liability insurance policy coverage. An insurance policy or insurancecontract purchased by a political subdivision or a government self-insurance pool in which a<br>political subdivision participates pursuant to this chapter may provide coverage for the types of<br>liabilities established by this chapter and may provide such additional coverage as the governing<br>body of the political subdivision determines to be appropriate. The insurer may not assert the<br>defense of governmental immunity, but this chapter confers no right upon a claimant to sue an<br>insurer directly. If a dispute exists concerning the amount or nature of the required insurance<br>coverage, the dispute must be tried separately.The insurance coverage authorized by thischapter may be in addition to any insurance coverage purchased by a political subdivision<br>pursuant to any other provision of law and if premium savings will result therefrom, any insurance<br>policy purchased pursuant to this chapter or any other provision of law may be written for a<br>period which exceeds one year.32-12.1-06. Statement to commissioner. Repealed by S.L. 1987, ch. 407, <meta property="og:url" content="https://statutes.laws.com/test/" /> <meta property="og:site_name" content="Statutes" /> <meta property="article:modified_time" content="2019-12-27T23:25:16+00:00" /> <meta name="twitter:card" content="summary_large_image" /> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t32'>T32</a> > <a href='https://statutes.laws.com/north-dakota/t32/t32c121'>T32c121</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t32/pdf/t32c121.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t32/pdf/t32c121.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>CHAPTER 32-12.1GOVERNMENTAL LIABILITY32-12.1-01. Legislative intent. This chapter creates additional powers and optional andalternative methods for the single and specific purpose of enabling political subdivisions to pay<br>and to compromise claims and judgments, to issue bonds to fund and satisfy the same, to levy<br>taxes in amounts necessary for such purposes without respect to limitations otherwise existing,<br>and to compromise judgments and make periodic payments on such compromised amount.32-12.1-02. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Claim&quot; means any claim permitted by this chapter brought against a political<br>subdivision for an injury caused by a political subdivision or an employee of the<br>political subdivision acting within the scope of the employee's employment or office.2.&quot;Commissioner&quot; means the insurance commissioner.3.&quot;Employee&quot; means any officer, employee, board member, volunteer, or servant of a<br>political subdivision, whether elected or appointed and whether or not compensated.<br>The term does not include an independent contractor, or any person performing<br>tasks the details of which the political subdivision has no right to control.4.&quot;Injury&quot; means personal injury, death, or property damage.5.&quot;Personal injury&quot; includes bodily injury, mental injury, sickness, or disease sustained<br>by a person, and injury to a person's rights or reputation.6.&quot;Political subdivision&quot;:a.Includes all counties, townships, park districts, school districts, cities, public<br>nonprofitcorporations,administrativeorlegalentitiesresponsibleforadministration of joint powers agreements, and any other units of local<br>government which are created either by statute or by the Constitution of North<br>Dakota for local government or other public purposes, except no new units of<br>government or political subdivisions are created or authorized by this chapter.b.Does not include nor may it be construed to mean either the state of North<br>Dakota or any of the several agencies, boards, bureaus, commissions,<br>councils, courts, departments, institutions, or offices of government which<br>collectively constitute the government of the state of North Dakota.7.&quot;Property damage&quot; includes injury to or destruction of tangible or intangible property.8.&quot;Public nonprofit corporation&quot; means a nonprofit corporation that performs a<br>governmental function and is funded, entirely or partly, by the state, a city, county,<br>park district, school district, or township.32-12.1-03. Liability of political subdivisions - Limitations.1.Each political subdivision is liable for money damages for injuries when the injuries<br>are proximately caused by the negligence or wrongful act or omission of any<br>employee acting within the scope of the employee's employment or office under<br>circumstances in which the employee would be personally liable to a claimant in<br>accordance with the laws of this state, or injury caused from some condition or use<br>of tangible property, real or personal, under circumstances in which the political<br>subdivision, if a private person, would be liable to the claimant. The enactment of a<br>law, rule, regulation, or ordinance to protect any person's health, safety, property, orPage No. 1welfare does not create a duty of care on the part of the political subdivision, its<br>employees, or its agents, if that duty would not otherwise exist.2.The liability of political subdivisions under this chapter is limited to a total of two<br>hundred fifty thousand dollars per person and five hundred thousand dollars for<br>injury to three or more persons during any single occurrence regardless of the<br>number of political subdivisions, or employees of such political subdivisions, which<br>are involved in that occurrence. A political subdivision may not be held liable, or be<br>ordered to indemnify an employee held liable, for punitive or exemplary damages.3.A political subdivision or a political subdivision employee may not be held liable<br>under this chapter for any of the following claims:a.A claim based upon an act or omission of a political subdivision employee<br>exercising due care in the execution of a valid or invalid statute or regulation.b.The decision to undertake or the refusal to undertake any legislative or<br>quasi-legislative act, including the decision to adopt or the refusal to adopt any<br>statute, charter, ordinance, order, regulation, resolution, or resolve.c.The decision to undertake or the refusal to undertake any judicial or<br>quasi-judicial act, including the decision to grant, to grant with conditions, to<br>refuse to grant, or to revoke any license, permit, order, or other administrative<br>approval or denial.d.The decision to perform or the refusal to exercise or perform a discretionary<br>function or duty, whether or not such discretion is abused and whether or not<br>the statute, charter, ordinance, order, resolution, regulation, or resolve under<br>which the discretionary function or duty is performed is valid or invalid.e.Injury directly or indirectly caused by a person who is not employed by the<br>political subdivision.f.A claim relating to injury directly or indirectly caused by the performance or<br>nonperformance of a public duty, including:(1)Inspecting, licensing, approving, mitigating, warning, abating, or failing to<br>so act regarding compliance with or the violation of any law, rule,<br>regulation, or any condition affecting health or safety.(2)Enforcing, monitoring, or failing to enforce or monitor conditions of<br>sentencing, parole, probation, or juvenile supervision.(3)Providing or failing to provide law enforcement services in the ordinary<br>course of a political subdivision's law enforcement operations.(4)Providing or failing to provide fire protection services in the ordinary<br>course of a political subdivision's fire protection operations.g.&quot;Public duty&quot; does not include action of the political subdivision or a political<br>subdivision employee under circumstances in which a special relationship can<br>be established between the political subdivision and the injured party. A special<br>relationship is demonstrated if all of the following elements exist:(1)Direct contact between the political subdivision and the injured party.(2)An assumption by the political subdivision, by means of promises or<br>actions, of an affirmative duty to act on behalf of the party who allegedly<br>was injured.Page No. 2(3)Knowledge on the part of the political subdivision that inaction of the<br>political subdivision could lead to harm.(4)The injured party's justifiable reliance on the political subdivision's<br>affirmative undertaking, occurrence of the injury while the injured party<br>was under the direct control of the political subdivision, or the political<br>subdivision action increases the risk of harm.4.This chapter does not obligate political subdivisions for an amount that is more than<br>the limitations upon liability imposed by this chapter. Subject to this chapter, any<br>payments to persons constitute payment in full of any compromised claim or<br>judgment or any final judgment under this chapter.5.Notwithstanding this chapter, a political subdivision or its insurance carrier is not<br>liable for any claim arising out of the conduct of a ridesharing arrangement, as<br>defined in section 8-02-07.6.A political subdivision is not liable for any claim based on an act or omission in the<br>designation, repair, operation, or maintenance of a minimum maintenance road if<br>that designation has been made in accordance with sections 24-07-35 through<br>24-07-37 and if the road has been maintained at a level to serve occasional and<br>intermittent traffic.32-12.1-04.Political subdivision to be named in action - Personal liability ofemployees - Indemnification of claims and final judgments.1.An action for injuries proximately caused by the alleged negligence, wrongful act, or<br>omission of an employee of a political subdivision occurring within the scope of the<br>employee's employment or office shall be brought against the political subdivision. If<br>there is any question concerning whether the alleged negligence, wrongful act, or<br>omission occurred within the scope of employment or office of the employee, the<br>employee may be named as a party to the action and the issue may be tried<br>separately.A political subdivision must defend the employee until the courtdetermines the employee was acting outside the scope of the employee's<br>employment or office.2.An employee shall not be personally liable for money damages for injuries when the<br>injuries are proximately caused by the negligence, wrongful act, or omission of the<br>employee acting within the scope of the employee's employment or office.3.No employee may be held liable in the employee's personal capacity for acts or<br>omissions of the employee occurring within the scope of the employee's<br>employment unless the acts or omissions constitute reckless or grossly negligent<br>conduct, or willful or wanton misconduct. An employee may be personally liable for<br>money damages for injuries when the injuries are proximately caused by the<br>negligence, wrongful act, or omission of the employee acting outside the scope of<br>the employee's employment or office.The plaintiff in such an action bears theburden of proof to show by clear and convincing evidence that the employee was<br>either acting outside the scope of the employee's employment or office or the<br>employee was acting within the scope of employment in a reckless, grossly<br>negligent, willful, or wanton manner.Employees may be liable for punitive orexemplary damages. The extent to which an employee may be personally liable<br>pursuant to this section and whether the employee was acting within the scope of<br>employment or office shall be specifically stated in a final judgment.4.A political subdivision shall indemnify and save harmless an employee for any claim,<br>whether groundless or not, and final judgment for any act or omission occurring<br>within the scope of employment or office of the employee. The indemnification shallPage No. 3be made in the manner provided by this chapter and shall be subject to the<br>limitations herein.32-12.1-05.Liability insurance policy coverage. An insurance policy or insurancecontract purchased by a political subdivision or a government self-insurance pool in which a<br>political subdivision participates pursuant to this chapter may provide coverage for the types of<br>liabilities established by this chapter and may provide such additional coverage as the governing<br>body of the political subdivision determines to be appropriate. The insurer may not assert the<br>defense of governmental immunity, but this chapter confers no right upon a claimant to sue an<br>insurer directly. If a dispute exists concerning the amount or nature of the required insurance<br>coverage, the dispute must be tried separately.The insurance coverage authorized by thischapter may be in addition to any insurance coverage purchased by a political subdivision<br>pursuant to any other provision of law and if premium savings will result therefrom, any insurance<br>policy purchased pursuant to this chapter or any other provision of law may be written for a<br>period which exceeds one year.32-12.1-06. Statement to commissioner. 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class="shortcode-content"> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t32'>T32</a> > <a href='https://statutes.laws.com/north-dakota/t32/t32c121'>T32c121</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t32/pdf/t32c121.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t32/pdf/t32c121.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>CHAPTER 32-12.1GOVERNMENTAL LIABILITY32-12.1-01. Legislative intent. This chapter creates additional powers and optional andalternative methods for the single and specific purpose of enabling political subdivisions to pay<br>and to compromise claims and judgments, to issue bonds to fund and satisfy the same, to levy<br>taxes in amounts necessary for such purposes without respect to limitations otherwise existing,<br>and to compromise judgments and make periodic payments on such compromised amount.32-12.1-02. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Claim&quot; means any claim permitted by this chapter brought against a political<br>subdivision for an injury caused by a political subdivision or an employee of the<br>political subdivision acting within the scope of the employee's employment or office.2.&quot;Commissioner&quot; means the insurance commissioner.3.&quot;Employee&quot; means any officer, employee, board member, volunteer, or servant of a<br>political subdivision, whether elected or appointed and whether or not compensated.<br>The term does not include an independent contractor, or any person performing<br>tasks the details of which the political subdivision has no right to control.4.&quot;Injury&quot; means personal injury, death, or property damage.5.&quot;Personal injury&quot; includes bodily injury, mental injury, sickness, or disease sustained<br>by a person, and injury to a person's rights or reputation.6.&quot;Political subdivision&quot;:a.Includes all counties, townships, park districts, school districts, cities, public<br>nonprofitcorporations,administrativeorlegalentitiesresponsibleforadministration of joint powers agreements, and any other units of local<br>government which are created either by statute or by the Constitution of North<br>Dakota for local government or other public purposes, except no new units of<br>government or political subdivisions are created or authorized by this chapter.b.Does not include nor may it be construed to mean either the state of North<br>Dakota or any of the several agencies, boards, bureaus, commissions,<br>councils, courts, departments, institutions, or offices of government which<br>collectively constitute the government of the state of North Dakota.7.&quot;Property damage&quot; includes injury to or destruction of tangible or intangible property.8.&quot;Public nonprofit corporation&quot; means a nonprofit corporation that performs a<br>governmental function and is funded, entirely or partly, by the state, a city, county,<br>park district, school district, or township.32-12.1-03. Liability of political subdivisions - Limitations.1.Each political subdivision is liable for money damages for injuries when the injuries<br>are proximately caused by the negligence or wrongful act or omission of any<br>employee acting within the scope of the employee's employment or office under<br>circumstances in which the employee would be personally liable to a claimant in<br>accordance with the laws of this state, or injury caused from some condition or use<br>of tangible property, real or personal, under circumstances in which the political<br>subdivision, if a private person, would be liable to the claimant. The enactment of a<br>law, rule, regulation, or ordinance to protect any person's health, safety, property, orPage No. 1welfare does not create a duty of care on the part of the political subdivision, its<br>employees, or its agents, if that duty would not otherwise exist.2.The liability of political subdivisions under this chapter is limited to a total of two<br>hundred fifty thousand dollars per person and five hundred thousand dollars for<br>injury to three or more persons during any single occurrence regardless of the<br>number of political subdivisions, or employees of such political subdivisions, which<br>are involved in that occurrence. A political subdivision may not be held liable, or be<br>ordered to indemnify an employee held liable, for punitive or exemplary damages.3.A political subdivision or a political subdivision employee may not be held liable<br>under this chapter for any of the following claims:a.A claim based upon an act or omission of a political subdivision employee<br>exercising due care in the execution of a valid or invalid statute or regulation.b.The decision to undertake or the refusal to undertake any legislative or<br>quasi-legislative act, including the decision to adopt or the refusal to adopt any<br>statute, charter, ordinance, order, regulation, resolution, or resolve.c.The decision to undertake or the refusal to undertake any judicial or<br>quasi-judicial act, including the decision to grant, to grant with conditions, to<br>refuse to grant, or to revoke any license, permit, order, or other administrative<br>approval or denial.d.The decision to perform or the refusal to exercise or perform a discretionary<br>function or duty, whether or not such discretion is abused and whether or not<br>the statute, charter, ordinance, order, resolution, regulation, or resolve under<br>which the discretionary function or duty is performed is valid or invalid.e.Injury directly or indirectly caused by a person who is not employed by the<br>political subdivision.f.A claim relating to injury directly or indirectly caused by the performance or<br>nonperformance of a public duty, including:(1)Inspecting, licensing, approving, mitigating, warning, abating, or failing to<br>so act regarding compliance with or the violation of any law, rule,<br>regulation, or any condition affecting health or safety.(2)Enforcing, monitoring, or failing to enforce or monitor conditions of<br>sentencing, parole, probation, or juvenile supervision.(3)Providing or failing to provide law enforcement services in the ordinary<br>course of a political subdivision's law enforcement operations.(4)Providing or failing to provide fire protection services in the ordinary<br>course of a political subdivision's fire protection operations.g.&quot;Public duty&quot; does not include action of the political subdivision or a political<br>subdivision employee under circumstances in which a special relationship can<br>be established between the political subdivision and the injured party. A special<br>relationship is demonstrated if all of the following elements exist:(1)Direct contact between the political subdivision and the injured party.(2)An assumption by the political subdivision, by means of promises or<br>actions, of an affirmative duty to act on behalf of the party who allegedly<br>was injured.Page No. 2(3)Knowledge on the part of the political subdivision that inaction of the<br>political subdivision could lead to harm.(4)The injured party's justifiable reliance on the political subdivision's<br>affirmative undertaking, occurrence of the injury while the injured party<br>was under the direct control of the political subdivision, or the political<br>subdivision action increases the risk of harm.4.This chapter does not obligate political subdivisions for an amount that is more than<br>the limitations upon liability imposed by this chapter. Subject to this chapter, any<br>payments to persons constitute payment in full of any compromised claim or<br>judgment or any final judgment under this chapter.5.Notwithstanding this chapter, a political subdivision or its insurance carrier is not<br>liable for any claim arising out of the conduct of a ridesharing arrangement, as<br>defined in section 8-02-07.6.A political subdivision is not liable for any claim based on an act or omission in the<br>designation, repair, operation, or maintenance of a minimum maintenance road if<br>that designation has been made in accordance with sections 24-07-35 through<br>24-07-37 and if the road has been maintained at a level to serve occasional and<br>intermittent traffic.32-12.1-04.Political subdivision to be named in action - Personal liability ofemployees - Indemnification of claims and final judgments.1.An action for injuries proximately caused by the alleged negligence, wrongful act, or<br>omission of an employee of a political subdivision occurring within the scope of the<br>employee's employment or office shall be brought against the political subdivision. If<br>there is any question concerning whether the alleged negligence, wrongful act, or<br>omission occurred within the scope of employment or office of the employee, the<br>employee may be named as a party to the action and the issue may be tried<br>separately.A political subdivision must defend the employee until the courtdetermines the employee was acting outside the scope of the employee's<br>employment or office.2.An employee shall not be personally liable for money damages for injuries when the<br>injuries are proximately caused by the negligence, wrongful act, or omission of the<br>employee acting within the scope of the employee's employment or office.3.No employee may be held liable in the employee's personal capacity for acts or<br>omissions of the employee occurring within the scope of the employee's<br>employment unless the acts or omissions constitute reckless or grossly negligent<br>conduct, or willful or wanton misconduct. An employee may be personally liable for<br>money damages for injuries when the injuries are proximately caused by the<br>negligence, wrongful act, or omission of the employee acting outside the scope of<br>the employee's employment or office.The plaintiff in such an action bears theburden of proof to show by clear and convincing evidence that the employee was<br>either acting outside the scope of the employee's employment or office or the<br>employee was acting within the scope of employment in a reckless, grossly<br>negligent, willful, or wanton manner.Employees may be liable for punitive orexemplary damages. The extent to which an employee may be personally liable<br>pursuant to this section and whether the employee was acting within the scope of<br>employment or office shall be specifically stated in a final judgment.4.A political subdivision shall indemnify and save harmless an employee for any claim,<br>whether groundless or not, and final judgment for any act or omission occurring<br>within the scope of employment or office of the employee. The indemnification shallPage No. 3be made in the manner provided by this chapter and shall be subject to the<br>limitations herein.32-12.1-05.Liability insurance policy coverage. An insurance policy or insurancecontract purchased by a political subdivision or a government self-insurance pool in which a<br>political subdivision participates pursuant to this chapter may provide coverage for the types of<br>liabilities established by this chapter and may provide such additional coverage as the governing<br>body of the political subdivision determines to be appropriate. The insurer may not assert the<br>defense of governmental immunity, but this chapter confers no right upon a claimant to sue an<br>insurer directly. If a dispute exists concerning the amount or nature of the required insurance<br>coverage, the dispute must be tried separately.The insurance coverage authorized by thischapter may be in addition to any insurance coverage purchased by a political subdivision<br>pursuant to any other provision of law and if premium savings will result therefrom, any insurance<br>policy purchased pursuant to this chapter or any other provision of law may be written for a<br>period which exceeds one year.32-12.1-06. Statement to commissioner. 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