§ 23.1-12-26 — Third-party damages - Participation in actions and review of settlements

1. An owner or operator sued for damages resulting from a release shall notify the
department within fourteen days of being served with a summons and complaint. The
owner or operator also shall advise the department if any insurer is defending the
owner or operator and provide to the department the name of that insurer.
2. An owner or operator that, before litigation, enters negotiations with a third party that
claims to have been damaged by a release, or that receives a demand for payment of
damages to a third party that claims to have been damaged by a release, shall notify
the department within fourteen days of the demand or the negotiations.
3. The department and the board shall review the conduct of any litigation or negotiation.
The department may not assume any legal costs incurred by the defendant or plaintiff,
but may participate in discovery, trial proceedings, or settlement negotiations of either
disputed liability or damages that bear on the determination of a plaintiff's damages.
4. The department and the board shall review any settlement negotiations to determine
the dollar amount of bodily injury or property damage actually, necessarily, and
reasonably incurred by third parties which, if paid by the defendant, would be
considered eligible costs.