§198D-7.5 - Agreements to defend and indemnify.
§198D-7.5 Agreements to defend and
indemnify. (a) The department may enter into agreements with owners of
public or private land to further the purposes of this chapter. Agreements
between the State and an owner may provide that the State will defend the
owner, its affiliates, and their respective heirs, executors, administrators,
representatives, successors, trustees, guardians, assigns, lessees, officers,
directors, stockholders, employees, agents, and partners, from claims made by
public users of the owner’s land.
(b) These agreements may also provide that the
State will indemnify the owner, its affiliates, and their respective heirs,
executors, administrators, representatives, successors, trustees, guardians,
assigns, lessees, officers, directors, stockholders, employees, agents, and
partners, for property losses incurred due to public use, subject to the
following provisions:
(1) The attorney general may review any claim;
(2) The attorney general may refer a claim associated
with property loss to the chairperson of the board of land and natural
resources for informal resolution subject to the terms of an agreement;
(3) All claims of property loss that are subject to
the terms of an agreement shall be reviewed in the first instance by the chairperson
for resolution as provided for in an agreement. The chairperson may compromise
or settle claims for property loss from the trail and access program special
funds for an amount not exceeding $10,000 per fiscal year, and the chairperson
may pay claims for property loss up to this amount without the review of the
attorney general;
(4) Upon referral by the chairperson, the attorney
general, in the attorney general's discretion, shall make determinations of
whether a claim for property loss would or would not be subject to the terms of
an agreement; and
(5) Claims greater than $10,000 per fiscal year shall
be subject to appropriation and allotment.
(c) The existence of an agreement does not
allow an action to be brought against the State. The State shall not be made a
party in any action solely because of the existence of an agreement to defend
or indemnify. Any action defended by the State pursuant to an agreement shall
be deemed an action against the owner, and the State may assert all defenses available
to the owner, its affiliates, and their respective heirs, executors,
administrators, representatives, successors, trustees, guardians, assigns,
lessees, officers, directors, stockholders, employees, agents, and partners.
(d) If the agreement provides for
indemnification by the State, no judgment shall be executed against an owner,
its affiliates, and their respective heirs, executors, administrators,
representatives, successors, trustees, guardians, assigns, lessees, officers,
directors, stockholders, employees, agents, and partners, until the legislature
has reviewed and approved the judgment. [L 1992, c 216, §1; am L 2005, c 175,
§2]