2023 District of Columbia Code › Title 2 - Government Administration › Chapter 12 - Business and Economic Development › Subchapter VIII - Business Improvement Districts › Part A - General › § 2–1215.14. Liability

§ 2–1215.14. Liability.
(a) The District shall not be liable or responsible in any manner for any debts incurred, or for any acts or inactions, by the Board or by any agent, employee, or member of the BID corporation. The BID shall reimburse the District for any legal fees or any other legal expenses related thereto, that it may incur as a result of defending against any claim brought against it, or its agents, or officers, as a result of carrying out any actions under this subchapter; provided that the BID shall not be required to reimburse the District for any legal fees or any other expenses related thereto, that the District incurs as a result of defending against any claim brought against it, or its agents, or officers, by the BID if the BID is the substantially prevailing party.
(b) Neither a director, officer, or member nor any affiliate of a director, officer, or member, nor any shareholder, officer, director, employee, partner, agent, or advisor of a director, officer, or member nor an affiliate of any director, officer, or member of the BID shall be personally liable to the BID corporation or to any owner or member for loss or damage caused by any act or omission in such capacity, except for losses or damages caused by such party’s fraudulent, willful, or wanton conduct or misconduct, breach of the BID instruments, or gross negligence. The BID corporation shall indemnify (only to the extent of BID corporation assets without recourse to any owner or member) any person who was or is a party or threatened to be made a party to any threatened, pending, or completed action, suit or proceeding (other than an action by or on behalf of the BID corporation), which action, suit, or proceeding arises out of or relates to any claim, issue, or matter involving or affecting the BID corporation, by reason of the fact that such party is or was a director, officer, or member, an affiliate of a director, officer, or member, or an officer, shareholder, director, employee, partner, agent, or advisor of a director, officer, or member or an affiliate of any director, officer, or member, or is or was serving at the request of the BID corporation as an officer, shareholder, director, employee, agent, or advisor of another partnership, corporation, joint venture, trust, or other enterprise, against all expenses, including attorneys’ fees, judgments, fines, and amounts paid in settlement, actually and reasonably incurred by such party in connection with such action, suit, or proceeding, so long as such party acted in good faith in a manner reasonably believed to be in or not opposed to the best interest of the BID corporation; provided, that no indemnification shall be made in respect of any claim, issue, or matter as to which a party has been adjudged to be liable for fraudulent, willful, or wanton conduct or misconduct, breach of the BID instruments, or gross negligence, or with respect to any criminal action or proceeding.
(c) The BID corporation may maintain insurance on behalf of any person who is or was a director or officer or the shareholder, employee, partner, agent, or advisor of a director or officer for a liability asserted against it and incurred by such party in any such capacity or arising out of such party’s status as such, whether or not the BID corporation would have the power to indemnify such party against such liability under this section.
(May 29, 1996, D.C. Law 11-134, § 14, 43 DCR 1684; renumbered as § 15, Oct. 8, 1997, D.C. Law 12-26, § 2, 44 DCR 4320.)
Prior Codifications
1981 Ed., § 1-2284.
Expiration of Law
Expiration of Law 11-134
See Historical and Statutory Notes following § 2-1215.01.
Emergency Legislation
For temporary amendment of section, see § 2 of the Business Improvement Districts Emergency Amendment Act of 1997 (D.C. Act 12-89, June 19, 1997, 44 DCR 3747), and § 2 of the Business Improvement Districts Congressional Review Emergency Amendment Act of 1997 (D.C. Act 12-146, August 12, 1997, 44 DCR 5054).
Temporary Legislation
Temporary revision of subchapter: D.C. Law 12-23 amended this subchapter. See Historical and Statutory Notes following § 2-1215.01.
Section 4(b) of D.C. Law 12-23 provided that this act shall expire on the 225th day of its having taken effect.