In this subtitle the following words have the meanings indicated. “Actual malice” means ill will or improper motivation. “Employee” means any person who was employed by a local government at the time of the act or omission giving rise to potential liability against that person. “Employee” includes: Any employee, either within or without a classified service or merit system; An appointed or elected official; or A volunteer who, at the request of the local government, and under its control and direction, was providing services or performing duties. “Local government” means: A charter county as defined in § 1–101 of the Local Government Article; A code county as defined in § 1–101 of the Local Government Article; A board of county commissioners; Baltimore City; A municipality as defined in § 1–101 of the Local Government Article; The Maryland–National Capital Park and Planning Commission; The Washington Suburban Sanitary Commission; The Northeast Maryland Waste Disposal Authority; A community college or board of trustees for a community college established or operating under Title 16 of the Education Article, not including Baltimore City Community College; A county public library or board of trustees of a county public library established or operating under Title 23, Subtitle 4 of the Education Article; The Enoch Pratt Free Library or Board of Trustees of the Enoch Pratt Free Library; The Washington County Free Library or the Board of Trustees of the Washington County Free Library; A special taxing district; A nonprofit community service corporation incorporated under State law that is authorized to collect charges or assessments; Housing authorities created under Division II of the Housing and Community Development Article; A sanitary district, sanitary commission, metropolitan commission, or other sewer or water authority established or operating under public local law or public general law; A regional development council; The Howard County Economic Development Authority; The Howard County Mental Health Authority; A commercial district management authority established by a county or municipal corporation if provided under local law; The Baltimore City Police Department; A regional library resource center or a cooperative library corporation established under Title 23, Subtitle 2 of the Education Article; Lexington Market, Inc., in Baltimore City; The Baltimore Public Markets Corporation, in Baltimore City; A nonprofit corporation serving as the local public transportation authority for Carroll County pursuant to a contract or memorandum of understanding with Carroll County; The nonprofit corporation serving as the animal control and licensing authority for Carroll County pursuant to a contract or memorandum of understanding with Carroll County (the Humane Society of Carroll County, Inc.); Garrett County Municipalities, Inc., in Garrett County; The nonprofit corporation serving as the local public transportation authority for Garrett County pursuant to a contract or memorandum of understanding with Garrett County (Garrett County Community Action Committee, Inc.); and The nonprofit corporation serving as the industrial development authority of Carroll County established under Title 12, Subtitle 1 of the Economic Development Article. “Regional development council” means a regional or municipal council established under Title 13 of the Economic Development Article. “Regional development council” includes: The Baltimore Metropolitan Council; The Mid–Shore Regional Council; The Upper Shore Regional Council; The Tri–County Council for the Lower Eastern Shore of Maryland; The Tri–County Council for Southern Maryland; and The Tri–County Council for Western Maryland.

Each local government shall provide for its employees a legal defense in any action that alleges damages resulting from tortious acts or omissions committed by an employee within the scope of employment with the local government. Except as provided in paragraph (2) of this subsection, a person may not execute against an employee on a judgment rendered for tortious acts or omissions committed by the employee within the scope of employment with a local government. An employee shall be fully liable for all damages awarded in an action in which it is found that the employee acted with actual malice. In such circumstances the judgment may be executed against the employee and the local government may seek indemnification for any sums it is required to pay under § 5-303(b)(1) of this subtitle. If the injury sustained is compensable under the Maryland Workers’ Compensation Act, an employee may not sue a fellow employee for tortious acts or omissions committed within the scope of employment. The rights and immunities granted to an employee are contingent on the employee’s cooperation in the defense of any action. If the employee does not cooperate, the employee forfeits any and all rights and immunities accruing to the employee under subsection (b) of this section.

Except as provided in paragraphs (2), (3), and (4) of this subsection, the liability of a local government may not exceed $400,000 per an individual claim, and $800,000 per total claims that arise from the same occurrence for damages resulting from tortious acts or omissions, or liability arising under subsection (b) of this section and indemnification under subsection (c) of this section. The limits on liability provided under paragraph (1) of this subsection do not include interest accrued on a judgment. If the liability of a local government arises from intentional tortious acts or omissions or a violation of a constitutional right committed by a law enforcement officer, the following limits on liability apply: Subject to item (ii) of this paragraph, the combined award for both economic and noneconomic damages may not exceed a total of $890,000 for all claims arising out of the same incident or occurrence, regardless of the number of claimants or beneficiaries who share in the award; and In a wrongful death action in which there are two or more claimants or beneficiaries, an award for noneconomic damages may not exceed 150% of the limitation established under item (i) of this paragraph, regardless of the number of claimants or beneficiaries who share in the award. If the liability of a local government arises from one or more claims of sexual abuse, as defined in § 5–117 of this title, that occurred when the claimant was a minor: Except as provided in item (ii) of this paragraph, the liability may not exceed $890,000 to a single claimant for injuries arising from the claim or claims; and For an action filed on or after June 1, 2025, that would have been barred by a time limitation before October 1, 2023, the liability may not exceed $400,000 to a single claimant for injuries arising from the claim or claims. Except as provided in subsection (c) of this section, a local government shall be liable for any judgment against its employee for damages resulting from tortious acts or omissions committed by the employee within the scope of employment with the local government. A local government may not assert governmental or sovereign immunity to avoid the duty to defend or indemnify an employee established in this subsection. A local government may not be liable for punitive damages. Subject to subsection (a) of this section and except as provided in subparagraph (ii) of this paragraph, a local government may indemnify an employee for a judgment for punitive damages entered against the employee. A local government may not indemnify a law enforcement officer for a judgment for punitive damages if the law enforcement officer has been found guilty under § 3–108 of the Public Safety Article as a result of the act or omission giving rise to the judgment, if the act or omission would constitute a felony under the laws of this State. A local government may not enter into an agreement that requires indemnification for an act or omission of an employee that may result in liability for punitive damages. Notwithstanding the provisions of subsection (b) of this section, this subtitle does not waive any common law or statutory defense or immunity in existence as of June 30, 1987, and possessed by an employee of a local government. A local government may assert on its own behalf any common law or statutory defense or immunity in existence as of June 30, 1987, and possessed by its employee for whose tortious act or omission the claim against the local government is premised and a local government may only be held liable to the extent that a judgment could have been rendered against such an employee under this subtitle. Lexington Market, Inc., in Baltimore City, and its employees, may not raise as a defense a limitation on liability described under § 5–406 of this title. Baltimore Public Markets Corporation, in Baltimore City, and its employees, may not raise as a defense a limitation on liability described under § 5–406 of this title.

This section does not apply to an action: Against a nonprofit corporation described in § 5–301(d)(23), (24), (25), (26), (28), or (29) of this subtitle or its employees; or Brought under § 5–117 of this title. Except as provided in subsections (a) and (d) of this section, an action for unliquidated damages may not be brought against a local government or its employees unless the notice of the claim required by this section is given within 1 year after the injury. The notice shall be in writing and shall state the time, place, and cause of the injury. The notice required under this section shall be given in person or by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, by the claimant or the representative of the claimant. Except as otherwise provided, if the defendant local government is a county, the notice required under this section shall be given to the county commissioners or county council of the defendant local government. If the defendant local government is: Baltimore City, the notice shall be given to the City Solicitor; Howard County or Montgomery County, the notice shall be given to the County Executive; and Anne Arundel County, Baltimore County, Frederick County, Harford County, or Prince George’s County, the notice shall be given to the county solicitor or county attorney. For any other local government, the notice shall be given to the corporate authorities of the defendant local government. Notwithstanding the other provisions of this section, unless the defendant can affirmatively show that its defense has been prejudiced by lack of required notice, upon motion and for good cause shown the court may entertain the suit even though the required notice was not given. This section does not apply if, within 1 year after the injury, the defendant local government has actual or constructive notice of: The claimant’s injury; or The defect or circumstances giving rise to the claimant’s injury.