Sec. 36a-237h. Inmunity for receivers and conservators of trust banks and uninsured banks and their employees.
Sec. 36a-237h. Inmunity for receivers and conservators of trust banks and
uninsured banks and their employees. (a) Persons entitled to protection under this
section shall be: (1) All receivers or conservators of trust banks or uninsured banks,
including present and former receivers and conservators; and (2) the employees of such
receivers or conservators. Attorneys, accountants, auditors and other professional persons or firms who are retained by the receiver or conservator as independent contractors,
and their employees, shall not be considered employees of the receiver or conservator
for purposes of this section.
(b) The receiver or conservator and the employees of the receiver or conservator
shall be immune from suit and liability, both personally and in their official capacities,
for any claim for damage to or loss of property, personal injury or other civil liability
caused by or resulting from any alleged act, error or omission of the receiver or conservator or any employee arising out of or by reason of their duties or employment, provided
nothing in this section shall be construed to hold the receiver or conservator or any
employee immune from suit or liability for any damage, loss, injury or liability caused
by the intentional or wilful and wanton misconduct of the receiver or conservator or
any employee.
(c) (1) If any legal action is commenced against the receiver or conservator or any
employee, whether personally or in such person's official capacity, alleging property
damage, property loss, personal injury or other civil liability caused by or resulting from
any alleged act, error or omission of the receiver or conservator or any employee arising
out of or by reason of their duties or employment, the receiver or conservator and any
employee shall be indemnified from the assets of the trust bank or uninsured bank for
all expenses, attorneys' fees, judgments, settlements, decrees or amounts due and owing
or paid in satisfaction of or incurred in the defense of such legal action unless it is
determined upon a final adjudication on the merits that the alleged act, error or omission
of the receiver or conservator or employee giving rise to the claim did not arise out of
or by reason of such person's duties or employment, or was caused by intentional or
wilful and wanton misconduct.
(2) Attorneys' fees and any related expenses incurred in defending a legal action
for which immunity or indemnity is available under this section shall be paid from the
assets of the trust bank or uninsured bank, as they are incurred, in advance of the final
disposition of such action upon receipt of an undertaking by or on behalf of the receiver
or conservator or employee to repay the attorneys' fees and expenses if it shall ultimately
be determined upon a final adjudication on the merits that the receiver or conservator
or employee is not entitled to immunity or indemnity under this section.
(3) Any indemnification for expense payments, judgments, settlements, decrees,
attorneys' fees, surety bond premiums or other amounts paid or to be paid from the
assets of the trust bank or uninsured bank pursuant to this section shall be an administrative expense of the receivership or conservatorship.
(4) In the event of any actual or threatened litigation against a receiver or conservator
or any employee for which immunity or indemnity may be available under this section,
a reasonable amount of funds, which in the judgment of the receiver or conservator may
be needed to provide immunity or indemnity, shall be segregated and reserved from the
assets of the trust bank or uninsured bank as security for the payment of indemnity until
such time as all applicable statutes of limitation shall have run and all actual or threatened
actions against the receiver or conservator or any employee have been completely and
finally resolved, and all obligations of the trust bank or uninsured bank and the commissioner under this section shall have been satisfied.
(5) In lieu of segregation and reserving of funds, the receiver or conservator may,
in the receiver's or conservator's discretion, obtain a surety bond or make other arrangements that will enable the receiver or conservator to fully secure the payment of all
obligations under this section.
(d) If any legal action against an employee for which indemnity may be available
under this section is settled prior to final adjudication on the merits, the receiver or
conservator shall pay from the assets of the bank the settlement amount on behalf of
the employee or indemnify the employee for the settlement amount unless the receiver
or conservator determines:
(1) That the claim did not arise out of or by reason of the employee's duties or
employment; or
(2) That the claim was caused by the intentional or wilful and wanton misconduct
of the employee.
(e) In any legal action in which the receiver or conservator is a defendant, that
portion of any settlement relating to the alleged act, error or omission of the receiver
or conservator shall be subject to the approval of the superior court before which the
receivership proceeding or conservatorship is pending. The court shall not approve that
portion of the settlement if it determines:
(1) That the claim did not arise out of or by reason of the receiver's or conservator's
duties or employment; or
(2) That the claim was caused by the intentional or wilful and wanton misconduct
of the receiver or conservator.
(f) Nothing contained or implied in this section shall operate, or be construed or
applied to deprive the receiver or conservator or any employee of any immunity, indemnity, benefits of law, rights or any defense otherwise available.
(g) (1) The provisions of subsection (b) of this section shall apply to any suit based
in whole or in part on any alleged act, error or omission which takes place on or after
May 12, 2004.
(2) No legal action shall lie against the receiver or conservator or any employee
based in whole or in part on any alleged act, error or omission which took place prior
to May 12, 2004, unless suit is filed and valid service of process is obtained not later
than twelve months after May 12, 2004.
(3) Subsections (c) to (e), inclusive, of this section shall apply to any suit which is
pending on or filed after May 12, 2004, without regard to when the alleged act, error
or omission took place.
(P.A. 04-136, S. 32; P.A. 05-288, S. 203.)
History: P.A. 04-136 effective May 12, 2004; P.A. 05-288 made a technical change in Subsec. (a), effective July 13, 2005.