Alabama Attorney General Opinion 1979-0114

THE ATTORNEY GENERAL STATE OF ALABAMA • MONTGOMERY. ALABAMA 3613( March 12, 1979 CHARLES A. GRADOICK ATTORNEY GENERAL Honorable David Vann Mayor City of Birmingham Jefferson County Birmingham, AL 35203 Municipalities - Birmingham - Tort Liability - Public Funds Municipalities may self insure and/or pay tort claims or judgments directly out of public funds. Opinion by Assistant Attorney General Hutner. Dear Mayor Vann: Your request of March 1, 1979 for an opinion has been received by the Office of the Attorney General. Your letter of requests reads in pertinent part as follows: H'1(a)-=:-Whether or not- municipality may:paydirectly-out-of- public - fundr- tort_Claims or judgments against its -.officers_and employees which arise out of:the.performance of_their duties and -in-the--line and scope of their employment; "(b) May a municipality self-insure its officers and employees out of public funds against tort liability which may arise out of the performance of their duties and in line and scope of their employment, either as an employee benefit or in the municipality's employee relations? trertaixtCorMM Titt ipartaillainiallettitaiadathiiiition;to TA:- R. --111h-tr -'-r- :M.lpennteiagretteri3;ga t-O-F4-Eeittattattleridatrof -Hi -- ItfluicyrJEnRehettattl. nonneyiniversity±lis- &-SYFFL-RildthfATA144thi7-- : - ataklartaZebtuaryaa;±19_16-neniini-qindir-FranIc :-Elli28;iWaliSE-1-11=HeatkitS64ewier-irunderda7teT4Verletdba ,-16,..L19751:: ..TOpinlorfrtci7.14, 49yertageHof probateand=Chairman7b=offee - ---COunty=coptifs-ktOn'aiitirtardetialcif:fidtaberaE142 :497.2.-, - - The conclusion of this office, based upon existing statutory, and case law and prior opinions of this office, is that a municipality may do either A or B of your request. This office has heretofore held that a municipal governing body has the authority to use municipal funds to pay for the expense of defending its officers in lawsuits which involve the actions of such officers in performing their official duties. Said opinions have been based upon the case of City of Birmingham vs. Wilkinson, 239 Ala. 199, 194 So. 548. Further certain opinions issued by this office have held that municipalities may, in their discretion, pay judgments against employees if the following tests are met. The corporation must have a proper interest in the action. The acts allegedly committed must have been done by the officials or employees in the discharge of their corporate duties. And the official or employees in performing said duties must have acted honestly and in good faith. City of Birmingham vs. Wilkinson, 239 Ala. 199, 194 So. 548 (1949); City of Montgomery vs. Collins, Ala. So. 2d (12 ABR 572, 1978). See opinion to Honorable VernonN. Schmitt, City Attorney, Post Office Box 521, Leeds, Alabama 35094. ---7. 0.01.16114441.*41f1t444cff te,4141.9gimitted -77the-±expenditure aa;t-Ltersitirifin -F- 1*.a,S+y-Linsurance-fox := Honorable David Vann Mayor Page 2. - 7-TirettLitrii!tfegai-flgieal-d-Tist-ine4o1171sweemusing-state fund - to_pay-Insuralquerr_premq,umscandtarafelt;insureandtusing- public - funds to pay a judgment resulting from the same kind_of liability that could be self insured. Honorable David Vann Mayor Page 3. This office recognizes that as a matter of policy, public officers and employees need some degree of protection. Failure to provide such would result in an exodus of some very qualified and dedicated people. Yours very truly, CHARLES A. GRADDICK Attorney General