§ 71-2094 — Action against receiver; requirements; Attorney General; defense or representation; conditions; costs

Nebraska § 71-2094

• Jurisdiction: Nebraska
• Ch. 71: Public Health and Welfare

Text

(1) No person shall bring an action against a receiver appointed under section 71-2086 without first securing leave of the court. The receiver and the members and officers of the receiver are liable in their individual capacity for intentional wrongdoing or gross negligence.
(2) In all other cases, the receiver is liable in the receiver's official capacity only, and any judgment rendered shall be satisfied out of the receivership assets. The receiver is not liable in the receiver's individual capacity for the expenses of the health care facility during the receivership. The receiver is an employee of the state only for the purpose of defending a claim filed against the receiver in the receiver's official capacity. If an action is brought against a receiver in the receiver's official capacity, the receiver may file a written request for counsel with the Attorney General asserting that such civil action is based in fact upon an alleged act or omission in the course and scope of the receiver's duties. The Attorney General shall thereupon appear and defend the receiver unless after investigation the Attorney General finds that the claim or demand does not arise out of an alleged act or omission occurring in the course and scope of the receiver's duties or the act or omission complained of amounted to intentional wrongdoing or gross negligence, in which case the Attorney General shall give the receiver written notice that defense of the claim or representation before the court has been rejected.
(3) A receiver against whom a claim is made, which is not rejected by the Attorney General pursuant to subsection (2) of this section, shall cooperate fully with the Attorney General in the defense of such claim. If the Attorney General determines that such receiver has not cooperated or has otherwise acted to prejudice the defense of the claim or the appearance, the Attorney General may at any time reject the defense of the claim before the court.
(4) If the Attorney General rejects the defense of a claim pursuant to subsection (2) of this section or if it is established by the judgment ultimately rendered on the claim that the act or omission complained of was not in the course or scope of the receiver's duties or amounted to intentional wrongdoing or gross negligence, no public money shall be paid in settlement of such claim or in payment of any judgment against such receiver. Such action by the Attorney General shall not prejudice the right of the receiver to assert and establish as a defense that the claim arose out of an alleged act or omission occurring in the course and scope of the receiver's duties or that the act or omission complained of did not amount to intentional wrongdoing or gross negligence. If the receiver is successful in asserting such defense, the receiver shall be indemnified for the reasonable costs of defending the claim.
(5) If the receiver has been defended by the Attorney General and it is established by the judgment ultimately rendered on the claim that the act or omission complained of amounted to intentional wrongdoing or gross negligence, the judgment against the receiver shall provide for payment to the state of the state's costs, including a reasonable attorney's fee.

Legislative History

Source: Laws 1995, LB 406, § 70; Laws 2020, LB1053, § 19.