Liability Avoidance for Extension Employees

Theodore A. (Ted) Feitshans, J.D.

Department of Agricultural & Resource Economics

N.C. State University

(919) 515-5195 ted_feitshans@ncsu.edu

Introduction

• Risk management

• Sources of liability– Personal– Organizational

• Extension issues

Risk Management

• The risk management model– Risk Identification– Risk Evaluation– Risk Treatment– Selection and Implementation– Program Monitoring

Sources of Individual & Organizational Liability

• Statutory/Regulatory

• Tort

• Intellectual property/Proprietary rights

• Contractual

Consequences of Individual & Organizational Liability

• Financial– Judgments– Defense costs

• Legal fees & costs• Employee time

• Loss of flexibility

• Reputational

Extension Issues

• State Tort Claims Act, N.C.G.S. §143-291• Defense Of State Employees Act, N.C.G.S. §143-

300.3– case based on acts or omissions committed in the scope

and course of employment – conduct does not involve fraud, corruption, or malice– the Attorney General determines that defending does not

create a conflict of interest with the State– the Attorney General does not determine that defending you

is not in the best interest of the State.

Extension Issues

• Payment of judgments– $1 million from University unit– $ 5 million state excess liability policy– Personal insurance or assets– State Motor Vehicle Insurance

• Up to $500,000

Extension Issues• Steps to take in the event of an accident

– Ensure the safety of all involved– Do not talk about it– Make notes; preserve documents and evidence

(NEVER destroy evidence)– Notify your supervisor and the NC State University

Office of Insurance and Risk Management– Notify Office of Legal Affairs if lawsuit likely or attorney

involved– Notify personal insurers

Extension Issues

• Subpoenas– Notify supervisor and the Office of Legal

Affairs• Forms:

http://www.ncsu.edu/legal/legal_topics/subpoenas.php

Extension Issues• Public records

– http://www.ah.dcr.state.nc.us/records/

• Open meetings law

• Certain records exempt– Trade secrets– Student records

http://www.ncsu.edu/legal/legal_topics/public_records.php

Extension Issues

• Mandatory reporting– Certain animal waste violations– Child abuse or neglect to the Director of

Social Services

Extension Issues

• Private business information• Lists of names and addresses• Misuse of state property• Conflict of interest• Political activity• Outside employment/consulting• Contracting authority

http://www.ncsu.edu/legal/legal_topics/contracts_purch/• Export controls

Resources• Office of Legal Affairs

http://www.ncsu.edu/legal/legal_topics/index.php

• Office of Insurance and Risk Management http://www2.acs.ncsu.edu/insurance/

• Conflicts/consulting http://www.ncsu.edu/sparcs/coi/

• Sponsored Programs and Regulatory Compliance http://www.ncsu.edu/sparcs/