19-6-423. Claim or suit against responsible parties -- Prerequisites for payment
from fund to responsible parties or third parties -- Limitations of liability for third party
claims.
(1) In order to be eligible for payments from the fund, if a responsible party receives
actual or constructive notice of an occurrence likely to give rise to a claim, that a suit has been
filed, or a claim has been made against him for bodily injury or property damage connected with
a release of petroleum from a petroleum storage tank, the responsible party shall:
(a) inform the state risk manager immediately of the occurrence, suit, or claim;
(b) allow the state risk manager and his legal counsel to participate with the responsible
party and his legal counsel in:
(i) the defense of any suit;
(ii) determination of legal strategy and any other decisions affecting the defense of any
suit; and
(iii) any settlement negotiations; and
(c) conduct the defense of any suit or claim in good faith.
(2) The executive secretary may not authorize payment of fund monies for any judgment
or award to third parties unless the state risk manager:
(a) indicates that he was not prevented from participating in the defense of the suit; and
(b) approves the settlement.
(3) In making payments to third parties from the fund pursuant to Section 19-6-421, or in
funding a corrective action plan pursuant to Section 19-6-420, the executive secretary may not
pay an award or judgment or fund a corrective action plan to the extent that it imposes any
liability or makes any payment for:
(a) obligations of a responsible party under a workers' compensation, disability benefits,
or unemployment compensation law or other similar law;
(b) bodily injury to an employee of the responsible party arising from and in the course of
his employment or to the spouse, child, parent, brother, sister, heirs, or personal representatives of
that employee as a result of that bodily injury;
(c) bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor vehicle, or watercraft;
(d) property damage to any property owned by, occupied by, rented to, loaned to, bailed
to, or otherwise in the care, custody, or control of the owner or operator except to the extent
necessary to complete a corrective action plan;
(e) bodily injury or property damage for which the responsible party is obligated to pay
damages only by reason of the assumption of liability in a contract or agreement, other than a
contract or agreement entered into to meet the financial responsibility requirements of Subtitle I of
the Resource Conservation and Recovery Act, 42 U.S.C., Section 6991c, et seq., or this part, or
regulations or rules made under either of them;
(f) bodily injury or property damage for which the responsible party is liable to a third
party solely on account of personal injury to the spouse of that third party;
(g) bodily injury or property damage caused by a release from a petroleum storage tank
covered by the fund or the cost of a corrective action plan, where the total amount previously paid
by the executive secretary to compensate third parties or for funding a corrective action plan in
respect to that same accidental release from the covered tank equals $990,000; or
(h) bodily injury or property damage caused by a release from a petroleum storage tank
covered by the fund or the cost of a corrective action plan when the total amount previously paid
by the executive secretary to compensate third parties or for funding corrective action plans in
respect to releases from tanks of any one responsible party during any fiscal year equals $990,000
for a responsible party regarding one to 99 petroleum storage tanks or $1,990,000 for a
responsible party regarding 100 or more petroleum storage tanks.
Amended by Chapter 172, 1997 General Session
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Last revised: Thursday, May 28, 2009