NY Pub Auth L § 3870 (2021)
2021 New York Laws PBA - Public Authorities Article 10-D - Miscellaneous Authorities Title 2 - Buffalo Fiscal Stability Authority 3870 - Actions Against the Authority.

§  3870.  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, notes or other obligations, 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,  notes  or  other obligations 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 the supreme court in the county.   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 hold  harmless  and  indemnify directors, officers and employees of 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, or employee 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 the authority shall be held 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 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 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.