2023 New York Laws › PBA - Public Authorities › Article 10-D - Miscellaneous Authorities › Title 3 - Erie County Fiscal Stability Authority › 3970 - Actions Against the Authority.

§  3970.  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. (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  are  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.