§ 3662 — Actions against the authority

New York § 3662

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1: Nassau County Interim Finance Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3662. Actions against the authority. 1. Except in an action for\nwrongful death, no action or proceeding shall be prosecuted or\nmaintained against the authority for personal injury or damage to real\nor personal property alleged to have been sustained by reason of the\nnegligence or wrongful act of the authority or of any director, officer,\nagent or employee thereof, unless (a) it shall appear by and as an\nallegation in the complaint or moving papers that a notice of claim\nshall have been made and served upon the authority, within the time\nlimit prescribed by and in compliance with section fifty-e of the\ngeneral municipal law, (b) it shall appear by and as an allegation in\nthe complaint or moving papers that at least thirty days have elapsed\nsince the service of such notice and that adjustment or payment thereof\nhas been neglected or refused, and (c) the action or proceeding shall be\ncommenced within one year after the happening of the event upon which\nthe claim is based. An action against the authority for wrongful death\nshall be commenced in accordance with the notice of claim and time\nlimitation provisions of title eleven of article nine of this chapter.\n 2. Wherever a notice of claim is served upon the authority, it shall\nhave the right to demand an examination of the claimant relative to the\noccurrence and extent of the injuries or damages for which claim is\nmade, in accordance with the provisions of section fifty-h of the\ngeneral municipal law.\n 3. The authority may require any person presenting for settlement an\naccount or claim for any cause whatever against the authority to be\nsworn before a director, counsel or an attorney, officer or employee\nthereof designated for such purpose, concerning such account or claim\nand when so sworn, to answer orally as to any facts relative to such\naccount or claim. The authority shall have power to settle or adjust any\nclaims in favor of or against the authority.\n 4. The rate of interest to be paid by the authority upon any judgment\nfor which it is liable, other than a judgment on bonds, shall not exceed\nthe maximum rate of interest on judgments and accrued claims against\nmunicipal authorities as provided in the general municipal law. Interest\non payments of principal or interest on any bonds in default shall\naccrue at the rate specified in the general municipal law until paid or\notherwise satisfied.\n 5. The venue of every action, suit or special proceeding brought\nagainst the authority shall be laid in the supreme court in the county\nof Nassau.\n 6. Neither any director of the authority nor any officer, employee, or\nagent of the authority, while acting within the scope of his or her\nauthority, shall be subject to any liability resulting from exercising\nor carrying out any of the powers given in this title.\n 7. Indemnification. (a) The state shall save harmless and indemnify\ndirectors, officers and employees of and representatives to the\nauthority, all of whom shall be deemed officers and employees of the\nstate for purposes of section seventeen of the public officers law,\nagainst any claim, demand, suit, or judgment arising by reason of any\nact or omission to act by such director, officer, employee or\nrepresentative occurring in the discharge of his or her duties and\nwithin the scope of his or her service on behalf of the authority\nincluding any claim, demand, suit or judgment based on allegations that\nfinancial loss was sustained by any person in connection with the\nacquisition, disposition or holding of securities or other obligations.\nIn the event of any such claim, demand, suit or judgment, a director,\nofficer or employee of or representative to the authority shall be saved\nharmless and indemnified, notwithstanding the limitations of subdivision\none of section seventeen of the public officers law, unless such\nindividual is found by a final judicial determination not to have acted,\nin good faith, for a purpose which he or she reasonably believed to be\nin the best interest of the authority or not to have had reasonable\ncause to believe that his or her conduct was lawful.\n (b) In connection with any such claim, demand, suit, or judgment, any\ndirector, officer or employee of or representative to the authority\nshall be entitled to representation by private counsel of his or her\nchoice in any civil judicial proceeding whenever the attorney general\ndetermines based upon his or her investigation and review of the facts\nand circumstances of the case that representation by the attorney\ngeneral would be inappropriate. The attorney general shall notify the\nindividual in writing of such determination that the individual is\nentitled to be represented by private counsel. The attorney general may\nrequire, as a condition to payment of the fees and expenses of such\nrepresentative, that appropriate groups of such individuals be\nrepresented by the same counsel. If the individual or groups of\nindividuals is entitled to representation by private counsel under the\nprovisions of this section, the attorney general shall so certify to the\nstate comptroller. Reasonable attorneys' fees and litigation expenses\nshall be paid by the state to such private counsel from time to time\nduring the pendency of the civil action or proceeding, subject to\ncertification that the individual is entitled to representation under\nthe terms and conditions of this section by the authority, upon the\naudit and warrant of the state comptroller. The provisions of this\nsubdivision shall be in addition to and shall not supplant any\nindemnification or other benefits heretofore or hereafter conferred upon\ndirectors, officers, or employees of and representatives to the\nauthority by section seventeen of the public officers law, by action of\nthe authority or otherwise. The provisions of this subdivision shall\ninure only to directors, officers and employees of and representatives\nto the authority, shall not enlarge or diminish the rights of any other\nparty, and shall not impair, limit or modify the rights and obligations\nof any insurer under any policy of insurance.\n