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H.138 1
Introduced by Representatives LaLonde of South Burlington and Goodnow of 2
Brattleboro 3
Referred to Committee on 4
Date: 5
Subject: Court procedure; municipal and county government; tort claims 6
against the State or municipalities; actions by or against municipal 7
officers; maximum liability of a municipality 8
Statement of purpose of bill as introduced: This bill proposes to establish the 9
maximum liability for actions against a municipality as $500,000.00 to any one 10
person and $2,000,000.00 of maximum aggregate liability to all persons arising 11
out of each occurrence. 12
An act relating to maximum liability of municipalities for tort claims 13
It is hereby enacted by the General Assembly of the State of Vermont: 14
Sec. 1. 12 V.S.A. chapter 189 is amended to read: 15
CHAPTER 189. TORT CLAIMS AGAINST THE STATE OR A 16
MUNICIPALITY 17
§ 5601. LIABILITY OF STATE OR A MUNICIPALITY 18
(a) The State of Vermont or a municipality shall be liable for injury to 19
persons or property or loss of life caused by the negligent or wrongful act or 20 BILL AS INTRODUCED H.138
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omission of an employee of the State or a municipality while acting within the 1
scope of employment, under the same circumstances, in the same manner, and 2
to the same extent as a private person would be liable to the claimant except 3
that the claimant shall not have the right to levy execution on any property of 4
the State to satisfy any judgment. The Superior Courts of the State shall have 5
exclusive jurisdiction of any actions brought hereunder under this chapter. 6
(b) Effective July 1, 2011, the The maximum liability of the State or a 7
municipality under this section shall be $500,000.00 to any one person and the 8
maximum aggregate liability shall be $2,000,000.00 to all persons arising out 9
of each occurrence. 10
(c) If the claimant is not a resident of the State of Vermont, the claimant 11
may bring suit in any Superior Court. The agent for the service of process on 12
the State shall be the Attorney General or the Attorney General’s duly 13
authorized representative. 14
(d) This chapter does not allow any insurance carrier to bring action or 15
recover against the State or a municipality for any payments made as a result 16
of any private insurance contract between the carrier and a State or municipal 17
employee. 18
(e) This section shall not apply to: 19
(1) Any claim based upon an act or omission of an employee of the 20
State or a municipality exercising due care, in the execution of a statute or 21 BILL AS INTRODUCED H.138
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regulation, whether or not such the statute or regulation is valid, or based upon 1
the exercise or performance or failure to exercise or perform a discretionary 2
function or duty on the part of a State agency or municipality or an employee 3
of the State or a municipality, whether or not the discretion involved is abused. 4
* * * 5
(3) Any claim for damages caused by the impositions of a quarantine by 6
the State or municipality. 7
(4) Any claim for damages caused by the fiscal operations of any State 8
or municipal officer or department. 9
* * * 10
(f) The limitations in subsection (e) of this section do not apply to claims 11
against the State of Vermont or a municipality to the extent that there exists 12
coverage under a policy of liability insurance purchased by the Secretary of 13
Administration or municipality. 14
* * * 15
§ 5602. EXCLUSIVE RIGHT OF ACTION 16
* * * 17
(c) As used in this chapter, “employee” means any person a “State 18
employee” as defined as a State employee by in 3 V.S.A. § 1101 or a 19
“municipal employee” as defined in 24 V.S.A. § 901a. 20
* * * 21 BILL AS INTRODUCED H.138
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Sec. 2. 24 V.S.A. chapter 33, subchapter 4 is amended to read: 1
Subchapter 4. Actions by or Against Officers; Liability; Penalties 2
§ 901. ACTIONS BY OR AGAINST TOWN MUNICIPAL OFFICERS 3
(a) Where an action is given to any appointed or elected municipal officer 4
or town school district officer, the action shall be brought in the name of the 5
town municipality in which the officer serves and in the case of a town school 6
district officer in the name of the town school district. If the action is given 7
against such the municipal or school district officers, it shall be brought against 8
such town the municipality or town school district, as the case may be. 9
(b) The municipality shall assume all reasonable legal fees incurred by an 10
officer when the officer was acting in the performance of his or her the 11
officer’s duties and did not act with any malicious intent. 12
(c) The maximum liability of a municipality under this section shall be the 13
maximum liability established pursuant to 12 V.S.A. § 5601. 14
§ 901a. TORT CLAIMS AGAINST MUNICIPAL EMPLOYEES 15
* * * 16
(g) The maximum liability of a municipality under this section shall be the 17
maximum liability established pursuant to 12 V.S.A. § 5601. 18 BILL AS INTRODUCED H.138
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§ 902. PENALTY 1
Unless otherwise provided, a town municipal officer who fails or neglects 2
to perform a duty imposed upon him or her the officer by law shall be fined not 3
more than $100.00. 4
§ 903. NONLIABILITY OF MUNICIPAL OFFICERS FOR MONEY PAID 5
OUT 6
An action shall not be maintained against a person for money paid out by 7
him or her the person as an officer of a municipal corporation municipality in 8
accordance with a vote of such corporation the municipality, whether such vote 9
was valid or not. 10
Sec. 3. EFFECTIVE DATE 11
This act shall take effect on July 1, 2025. 12