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07/14/2008 Council Packet
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07/14/2008 Council Packet
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City Council
Council Document Type
Council Packet
Meeting Date
07/14/2008
Council Meeting Type
Regular
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governmental employee and hinder them from exercising independent judgment and <br />discretion. Pletan v. Gaines, 494 N.W.2d 38 (Minn. 1992). It is very rare for a court to find <br />official immunity but to deny the government employer vicarious official immunity <br />Municipal Tort Caps <br />Minnesota Statutes §466.04 addresses the tort liability of municipalities, limiting the financial <br />liability of any municipality to $300,000 to any one claimant, and up to $1,000,000 for all <br />claimants per incident. See Minn. Stat. §466.04, subd. 1(a)(1)(2)(3) depending upon the date of the <br />claim. No award for damages on any tort claim shall include punitive damages. The damages <br />awarded are limited to compensatory damages. <br />1. What claims are covered by the cap? <br />a. Any tort liability claims. Examples: <br />• Wrongful death <br />• Personal injury <br />• Negligence <br />• Dram shop <br />• Nuisance <br />• Trespass <br />b. Indemnification. <br />Subject to the tort cap limits in Minn. Stat. §466.04, a city must defend and indemnify any <br />employee or official whether elected or appointed, for damages claimed against the <br />employee or official, provided that the employee or official: <br />• was acting in the performance or scope of the duties of the position; and <br />• was not guilty of malfeasance, willful neglect of duty or bad faith. <br />City employees or officials are often personally named as defendants in lawsuits, as well as <br />the city. Subject to the above limitations, the city must indemnify and defend the employee <br />or official. <br />2. What claims are not covered by the cap? <br />Non -tort claims <br />• Breach of contract <br />• Eminent domain /condemnation <br />• Constitutional claims <br />• Any federal claims based upon federal statute or the constitution (e.g. Section 1983, <br />ADA) <br />3. Liability Insurance and Waiver of Statutory Cap <br />a. Procurement of Liability Insurance: Excess coverage <br />The governing body of any municipality may procure insurance against liability of the <br />municipality and its officers, employees, and agents for damages .... resulting from it <br />6 <br />28 <br />• <br />
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