Opinion ID: 1267933
Heading Depth: 2
Heading Rank: 2

Heading: Whether An Entity May Waive the Tort Claims Act's Limitation On Damages

Text: Appellants assert that in cases accruing after July 1, 1986, possession of liability insurance coverage above the statutory cap set forth in Section 15-78-120(a) does not constitute a waiver of immunity up to the coverage limits. We agree. Section 15-78-20(c)(i) expressly provides that liability insurance coverage acts as a limitation on recovery only in such cases arising or accruing on or before July 1, 1986. For all actions arising after that date, the limits set forth in Section 15-78-120(a) apply. Therefore, only if respondent had been injured on or prior to July 1, 1986, would he be able to take advantage of the $1,000,000.00 policy limit. To hold otherwise, would defeat the express legislative intent that the State, and its political subdivisions, are only liable for torts within the limitations of this chapter ... Section 15-78-20(a). It would also contravene the legislature's directive to construe provisions of the Tort Claims Act relating to limitations on and exemptions to the liability of the State liberally, in favor of limiting liability of the State. Section 15-78-20(f). Because the legislature created an express waiver of immunity to those actions arising or accruing on or before July 1, 1986, we may infer that the legislature would have provided a similar waiver of immunity to those actions arising or accruing after July 1, 1986 had the legislature so intended. Furthermore, appellant school district is a creature of the State. It is a political subdivision. It does not have the power by its actions to waive policy decisions which the legislature has made about the rights and remedies under statute. Consequently, we find that appellants did not and cannot waive its immunity up to the coverage limits of its policy as to causes of action arising or accruing after July 1, 1986 and that the statutory cap set forth in Section 15-78-120(a) applies to such actions.