N.Y. Public Authorities Law § 3662: Actions against the authority

§ 3662. Actions against the authority. 1. Except in an action for

wrongful death, no action or proceeding shall be prosecuted or

maintained against the authority for personal injury or damage to real

or personal property alleged to have been sustained by reason of the

negligence or wrongful act of the authority or of any director, officer,

agent or employee thereof, unless (a) it shall appear by and as an

allegation in the complaint or moving papers that a notice of claim

shall have been made and served upon the authority, within the time

limit prescribed by and in compliance with section fifty-e of the

general municipal law, (b) it shall appear by and as an allegation in

the complaint or moving papers that at least thirty days have elapsed

since the service of such notice and that adjustment or payment thereof

has been neglected or refused, and (c) the action or proceeding shall be

commenced within one year after the happening of the event upon which

the claim is based. An action against the authority for wrongful death

shall be commenced in accordance with the notice of claim and time

limitation provisions of title eleven of article nine of this chapter.

2. Wherever a notice of claim is served upon the authority, it shall

have the right to demand an examination of the claimant relative to the

occurrence and extent of the injuries or damages for which claim is

made, in accordance with the provisions of section fifty-h of the

general municipal law.

3. The authority may require any person presenting for settlement an

account or claim for any cause whatever against the authority to be

sworn before a director, counsel or an attorney, officer or employee

thereof designated for such purpose, concerning such account or claim

and when so sworn, to answer orally as to any facts relative to such

account or claim. The authority shall have power to settle or adjust any

claims in favor of or against the authority.

4. The rate of interest to be paid by the authority upon any judgment

for which it is liable, other than a judgment on bonds, shall not exceed

the maximum rate of interest on judgments and accrued claims against

municipal authorities as provided in the general municipal law. Interest

on payments of principal or interest on any bonds in default shall

accrue at the rate specified in the general municipal law until paid or

otherwise satisfied.

5. The venue of every action, suit or special proceeding brought

against the authority shall be laid in the supreme court in the county

of Nassau.

6. Neither any director of the authority nor any officer, employee, or

agent of the authority, while acting within the scope of his or her

authority, shall be subject to any liability resulting from exercising

or carrying out any of the powers given in this title.

7. Indemnification. (a) The state shall save harmless and indemnify

directors, officers and employees of and representatives to the

authority, all of whom shall be deemed officers and employees of the

state for purposes of section seventeen of the public officers law,

against any claim, demand, suit, or judgment arising by reason of any

act or omission to act by such director, officer, employee or

representative occurring in the discharge of his or her duties and

within the scope of his or her service on behalf of the authority

including any claim, demand, suit or judgment based on allegations that

financial loss was sustained by any person in connection with the

acquisition, disposition or holding of securities or other obligations.

In the event of any such claim, demand, suit or judgment, a director,

officer or employee of or representative to the authority shall be saved

harmless and indemnified, notwithstanding the limitations of subdivision

one of section seventeen of the public officers law, unless such

individual is found by a final judicial determination not to have acted,

in good faith, for a purpose which he or she reasonably believed to be

in the best interest of the authority or not to have had reasonable

cause to believe that his or her conduct was lawful.

(b) In connection with any such claim, demand, suit, or judgment, any

director, officer or employee of or representative to the authority

shall be entitled to representation by private counsel of his or her

choice in any civil judicial proceeding whenever the attorney general

determines based upon his or her investigation and review of the facts

and circumstances of the case that representation by the attorney

general would be inappropriate. The attorney general shall notify the

individual in writing of such determination that the individual is

entitled to be represented by private counsel. The attorney general may

require, as a condition to payment of the fees and expenses of such

representative, that appropriate groups of such individuals be

represented by the same counsel. If the individual or groups of

individuals is entitled to representation by private counsel under the

provisions of this section, the attorney general shall so certify to the

state comptroller. Reasonable attorneys' fees and litigation expenses

shall be paid by the state to such private counsel from time to time

during the pendency of the civil action or proceeding, subject to

certification that the individual is entitled to representation under

the terms and conditions of this section by the authority, upon the

audit and warrant of the state comptroller. The provisions of this

subdivision shall be in addition to and shall not supplant any

indemnification or other benefits heretofore or hereafter conferred upon

directors, officers, or employees of and representatives to the

authority by section seventeen of the public officers law, by action of

the authority or otherwise. The provisions of this subdivision shall

inure only to directors, officers and employees of and representatives

to the authority, shall not enlarge or diminish the rights of any other

party, and shall not impair, limit or modify the rights and obligations

of any insurer under any policy of insurance.