04 NCAC 20B .0702          ACTIONS AGAINST THE COUNCIL OR COUNCIL MEMBERS

(a)  All actions against the council or against a council member in his or her capacity as a council member or against a council member in his or her individual capacity alleging misfeasance, malfeasance or nonfeasance in his or her role as a council member shall be brought by filing a complaint in accordance with Subchapter 20C .0002.

(b)  Members of the council shall only be liable in the event that the complainant establishes by a preponderance of the evidence that such member(s) engaged in misconduct that constituted fraud.  Complaints that fail to allege facts constituting fraud shall be dismissed.

(c)  Awards or damages shall be limited to actual losses of the complainant.  Council members are not individually liable for any award against the council.

(d)  Class action complaints are not permitted, except in extraordinary circumstances.

 

History Note:        Authority Ex. O. 93, June 8, 1983; 20 C.F.R. 629.51; 143B‑430(b);

Eff. August 1, 1982;

Amended August 1, 1988; October 1, 1984.