Legal Representation

WHAT

When employees are sued as a result of acts or omissions while carrying out their official TVA responsibilities, TVA defends them and pays any judgments resulting from such lawsuits. This practice also applies to the handling of all claims by or against TVA.

WHO

All organizations and employees, including Board members

WHY

TVA and its employees are sometimes subject to claims and litigation as a result of carrying out TVA's business. Employees should not be subject to possible personal liability as a result of their acts or omissions while carrying out official TVA responsibilities.

HOW

AVOIDING LITIGATION

TVA attempts to avoid litigation by:

Respecting private rights.
Taking preventive action to avoid injury and damage to others.
Seeking to collect its claims by means other than litigation.
Attempting to negotiate settlements prior to and during legal proceedings as TVA deems appropriate, and using other alternative dispute resolution procedures whenever feasible to achieve consensus decisions which resolve disputes quickly, cheaply and fairly.

DEFENDING EMPLOYEES

TVA will defend employees and pay any claim or judgment if a legal action results:

From an action taken by a TVA employee while on official TVA business and acting within the scope of his or her employment, or
Because the employee refrained from taking an action while on official TVA business and acting within the scope of his or her employment.

TVA determines whether the employee is on official business and acting within the scope of his or her employment.

COOPERATION WITH THE OFFICE OF THE GENERAL COUNSEL

Employees against whom legal claims are brought must cooperate with TVA and its General Counsel by:

Reporting immediately to the TVA Police all motor vehicle accidents which occur while on official TVA business.
Reporting any claims or lawsuits immediately to TVA's General Counsel.
Cooperating fully with any investigation required.
Giving TVA full control over the handling of the claim or lawsuit.
Cooperating fully during any litigation arising from the claim.

ROLES

Organizations and Employees

Report motor vehicle accidents to the TVA Police.
Report any claims or lawsuits to TVA's General Counsel.
Assist and cooperate with the Office of the General Counsel in investigating and adjusting claims.

Office of the General Counsel

Provides legal assistance and representation to organizations and employees under this practice.
Directs the investigation, handling and adjustment of claims.
Determines whether employees are on official TVA business and acting within the scope of their employment under this practice.
Settles or authorizes settlement of claims and litigation by and against TVA and against TVA employees involving payment of $200,000 or less on disputed amounts, except condemnation cases.
Advises and recommends settlement of those claims requiring Board approval.

TVA Officers (or Their Designated Representatives)

Settle claims by and against TVA and against TVA employees which involve claims of $1,000 or less, when authorized by the General Counsel.

Board of Directors

Approves settlement of claims and litigation by and against TVA and against TVA employees involving payment of more than $200,000 on disputed amounts.

RESOURCE

Office of the General Counsel

This practice is based on various Board actions.

Last Revised 7/2003