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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. 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e 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('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 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\u003cbr\u003eand to compromise claims and judgments, to issue bonds to fund and satisfy the same, to levy\u003cbr\u003etaxes in amounts necessary for such purposes without respect to limitations otherwise existing,\u003cbr\u003eand 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.\u0026quot;Claim\u0026quot; means any claim permitted by this chapter brought against a political\u003cbr\u003esubdivision for an injury caused by a political subdivision or an employee of the\u003cbr\u003epolitical subdivision acting within the scope of the employee's employment or office.2.\u0026quot;Commissioner\u0026quot; means the insurance commissioner.3.\u0026quot;Employee\u0026quot; means any officer, employee, board member, volunteer, or servant of a\u003cbr\u003epolitical subdivision, whether elected or appointed and whether or not compensated.\u003cbr\u003eThe term does not include an independent contractor, or any person performing\u003cbr\u003etasks the details of which the political subdivision has no right to control.4.\u0026quot;Injury\u0026quot; means personal injury, death, or property damage.5.\u0026quot;Personal injury\u0026quot; includes bodily injury, mental injury, sickness, or disease sustained\u003cbr\u003eby a person, and injury to a person's rights or reputation.6.\u0026quot;Political subdivision\u0026quot;:a.Includes all counties, townships, park districts, school districts, cities, public\u003cbr\u003enonprofitcorporations,administrativeorlegalentitiesresponsibleforadministration of joint powers agreements, and any other units of local\u003cbr\u003egovernment which are created either by statute or by the Constitution of North\u003cbr\u003eDakota for local government or other public purposes, except no new units of\u003cbr\u003egovernment 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\u003cbr\u003eDakota or any of the several agencies, boards, bureaus, commissions,\u003cbr\u003ecouncils, courts, departments, institutions, or offices of government which\u003cbr\u003ecollectively constitute the government of the state of North Dakota.7.\u0026quot;Property damage\u0026quot; includes injury to or destruction of tangible or intangible property.8.\u0026quot;Public nonprofit corporation\u0026quot; means a nonprofit corporation that performs a\u003cbr\u003egovernmental function and is funded, entirely or partly, by the state, a city, county,\u003cbr\u003epark 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\u003cbr\u003eare proximately caused by the negligence or wrongful act or omission of any\u003cbr\u003eemployee acting within the scope of the employee's employment or office under\u003cbr\u003ecircumstances in which the employee would be personally liable to a claimant in\u003cbr\u003eaccordance with the laws of this state, or injury caused from some condition or use\u003cbr\u003eof tangible property, real or personal, under circumstances in which the political\u003cbr\u003esubdivision, if a private person, would be liable to the claimant. The enactment of a\u003cbr\u003elaw, 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\u003cbr\u003eemployees, 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\u003cbr\u003ehundred fifty thousand dollars per person and five hundred thousand dollars for\u003cbr\u003einjury to three or more persons during any single occurrence regardless of the\u003cbr\u003enumber of political subdivisions, or employees of such political subdivisions, which\u003cbr\u003eare involved in that occurrence. A political subdivision may not be held liable, or be\u003cbr\u003eordered 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\u003cbr\u003eunder this chapter for any of the following claims:a.A claim based upon an act or omission of a political subdivision employee\u003cbr\u003eexercising 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\u003cbr\u003equasi-legislative act, including the decision to adopt or the refusal to adopt any\u003cbr\u003estatute, charter, ordinance, order, regulation, resolution, or resolve.c.The decision to undertake or the refusal to undertake any judicial or\u003cbr\u003equasi-judicial act, including the decision to grant, to grant with conditions, to\u003cbr\u003erefuse to grant, or to revoke any license, permit, order, or other administrative\u003cbr\u003eapproval or denial.d.The decision to perform or the refusal to exercise or perform a discretionary\u003cbr\u003efunction or duty, whether or not such discretion is abused and whether or not\u003cbr\u003ethe statute, charter, ordinance, order, resolution, regulation, or resolve under\u003cbr\u003ewhich 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\u003cbr\u003epolitical subdivision.f.A claim relating to injury directly or indirectly caused by the performance or\u003cbr\u003enonperformance of a public duty, including:(1)Inspecting, licensing, approving, mitigating, warning, abating, or failing to\u003cbr\u003eso act regarding compliance with or the violation of any law, rule,\u003cbr\u003eregulation, or any condition affecting health or safety.(2)Enforcing, monitoring, or failing to enforce or monitor conditions of\u003cbr\u003esentencing, parole, probation, or juvenile supervision.(3)Providing or failing to provide law enforcement services in the ordinary\u003cbr\u003ecourse of a political subdivision's law enforcement operations.(4)Providing or failing to provide fire protection services in the ordinary\u003cbr\u003ecourse of a political subdivision's fire protection operations.g.\u0026quot;Public duty\u0026quot; does not include action of the political subdivision or a political\u003cbr\u003esubdivision employee under circumstances in which a special relationship can\u003cbr\u003ebe established between the political subdivision and the injured party. A special\u003cbr\u003erelationship 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\u003cbr\u003eactions, of an affirmative duty to act on behalf of the party who allegedly\u003cbr\u003ewas injured.Page No. 2(3)Knowledge on the part of the political subdivision that inaction of the\u003cbr\u003epolitical subdivision could lead to harm.(4)The injured party's justifiable reliance on the political subdivision's\u003cbr\u003eaffirmative undertaking, occurrence of the injury while the injured party\u003cbr\u003ewas under the direct control of the political subdivision, or the political\u003cbr\u003esubdivision action increases the risk of harm.4.This chapter does not obligate political subdivisions for an amount that is more than\u003cbr\u003ethe limitations upon liability imposed by this chapter. Subject to this chapter, any\u003cbr\u003epayments to persons constitute payment in full of any compromised claim or\u003cbr\u003ejudgment or any final judgment under this chapter.5.Notwithstanding this chapter, a political subdivision or its insurance carrier is not\u003cbr\u003eliable for any claim arising out of the conduct of a ridesharing arrangement, as\u003cbr\u003edefined in section 8-02-07.6.A political subdivision is not liable for any claim based on an act or omission in the\u003cbr\u003edesignation, repair, operation, or maintenance of a minimum maintenance road if\u003cbr\u003ethat designation has been made in accordance with sections 24-07-35 through\u003cbr\u003e24-07-37 and if the road has been maintained at a level to serve occasional and\u003cbr\u003eintermittent 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\u003cbr\u003eomission of an employee of a political subdivision occurring within the scope of the\u003cbr\u003eemployee's employment or office shall be brought against the political subdivision. If\u003cbr\u003ethere is any question concerning whether the alleged negligence, wrongful act, or\u003cbr\u003eomission occurred within the scope of employment or office of the employee, the\u003cbr\u003eemployee may be named as a party to the action and the issue may be tried\u003cbr\u003eseparately.A political subdivision must defend the employee until the courtdetermines the employee was acting outside the scope of the employee's\u003cbr\u003eemployment or office.2.An employee shall not be personally liable for money damages for injuries when the\u003cbr\u003einjuries are proximately caused by the negligence, wrongful act, or omission of the\u003cbr\u003eemployee 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\u003cbr\u003eomissions of the employee occurring within the scope of the employee's\u003cbr\u003eemployment unless the acts or omissions constitute reckless or grossly negligent\u003cbr\u003econduct, or willful or wanton misconduct. An employee may be personally liable for\u003cbr\u003emoney damages for injuries when the injuries are proximately caused by the\u003cbr\u003enegligence, wrongful act, or omission of the employee acting outside the scope of\u003cbr\u003ethe 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\u003cbr\u003eeither acting outside the scope of the employee's employment or office or the\u003cbr\u003eemployee was acting within the scope of employment in a reckless, grossly\u003cbr\u003enegligent, willful, or wanton manner.Employees may be liable for punitive orexemplary damages. The extent to which an employee may be personally liable\u003cbr\u003epursuant to this section and whether the employee was acting within the scope of\u003cbr\u003eemployment or office shall be specifically stated in a final judgment.4.A political subdivision shall indemnify and save harmless an employee for any claim,\u003cbr\u003ewhether groundless or not, and final judgment for any act or omission occurring\u003cbr\u003ewithin 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\u003cbr\u003elimitations 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\u003cbr\u003epolitical subdivision participates pursuant to this chapter may provide coverage for the types of\u003cbr\u003eliabilities established by this chapter and may provide such additional coverage as the governing\u003cbr\u003ebody of the political subdivision determines to be appropriate. The insurer may not assert the\u003cbr\u003edefense of governmental immunity, but this chapter confers no right upon a claimant to sue an\u003cbr\u003einsurer directly. If a dispute exists concerning the amount or nature of the required insurance\u003cbr\u003ecoverage, 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\u003cbr\u003epursuant to any other provision of law and if premium savings will result therefrom, any insurance\u003cbr\u003epolicy purchased pursuant to this chapter or any other provision of law may be written for a\u003cbr\u003eperiod which exceeds one year.32-12.1-06. Statement to commissioner. 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