Opinion ID: 882245
Heading Depth: 1
Heading Rank: 17

Heading: Part 3Claims and Actions

Text: Section 2-9-301 sets forth the procedure for filing claims against the State. Section 2-9-304 provides that the governing body of each political subdivision, such as the board of trustees of the School District in the present case, after conferring with its legal counsel, may compromise and settle any claim subject to the terms of insurance, if any. The only limitation is that a settlement involving a self insurance reserve fund or deductible reserve fund must be approved by the district court. Section 2-9-305 covers immunity, defense and indemnification of officers and employees. This section requires the public employer to pay any judgment for damages and provides that the employee is indemnified for such damages. It provides that recovery against the governmental entity is a bar to recovery against the employee. In a similar manner it provides that if the entity acknowledges that the conduct arose out of the course and scope of the employment, then the employee is immune from liability. Section 2-9-314 requires court approval of attorney's fees. Section 2-9-316 applies to a political subdivision such as the present School District. It provides that a final judgment shall be satisfied out of funds that may be available from the following: (1) insurance; (2) the general fund or any other funds generally available to the governing body; (3) a property tax, otherwise authorized by law, collected by a special levy... except that such levy may not exceed 10 mills; (4) proceeds from the sale of bonds issued by a county, city or school district for the purpose of deriving revenue for the payment of the judgment liability ... Property taxes may be levied to amortize such bonds ... provided the levy for payment of any such bonds or judgments may not exceed, in the aggregate, 10 mills annually. The foregoing constitute the pertinent code sections as contained in the 1989 Montana Codes Annotated which we conclude must be construed together in order to answer the issue before us.