Code of Federal Regulations - Title 14

14 CFR Ch. I (1–1–14 Edition)

§ 15.109

Settlements.

(a) A publisher may not settle a

claim with another party, for which
the publisher has sought, or intends to
seek, indemnification under this part,
unless—

(1) The publisher submits a copy of

the proposed settlement, and a state-
ment justifying the settlement, to the
Chief Counsel of the FAA; and

(2) The Administrator and where nec-

essary, the appropriate official of the
Department of Justice, approves the
proposed settlement.

(3) The publisher submits a signed re-

lease that clearly releases the United
States from any further liability to the
publisher and the claimant.

(b) If the Administrator does not ap-

prove the proposed settlement, the Ad-
ministrator will—

(1) So notify the publisher by reg-

istered mail within 60 days of receipt of
the proposed settlement; and

(2) Explain why the request for in-

demnification was not approved.

proposed settlement, the Adminis-
trator will so notify the publisher by
registered mail within 60 days after the
FAA’s receipt of the proposed settle-
ment.

(d) If the Administrator does not

have sufficient information to approve
or disapprove the proposed settlement,
the Administrator will request, within
60 days after receipt of the proposed
settlement, the additional information
needed to make a determination.

§ 15.111

Conduct of litigation.

(a) If a lawsuit is filed against the

publisher and the publisher has sought,
or intends to seek, indemnification
under this part, the publisher shall—

(1) Give notice as required by § 15.107

of this part;

(2) If requested by the United

States—

(i) Implead the United States as a

third-party defendant in the action;
and

(ii) Arrange for the removal of the

action to Federal Court;

(3) Promptly provide any additional

information requested by the United
States; and

(4) Cooperate with the United States

in the defense of the lawsuit.

(b) If the lawsuit filed against the

publisher results in a proposed settle-
ment, the publisher shall submit that
proposed settlement to the FAA for ap-
proval in accordance with § 15.109 of
this part.

publisher results in a judgment against
the publisher and the publisher has
sought, or intends to seek, indem-
nification under this part as a result of
the adverse judgment, the publisher
shall—

(1) Give notice to the FAA as re-

quired by § 15.107(d) of this part;

(2) Submit a copy of the trial court’s

decision to the FAA Chief Counsel not
more than 5 business days after the ad-
verse judgment is rendered; and

(3) If an appeal is taken from the ad-

verse judgment, submit a copy of the
appellate decision to the FAA Chief
Counsel not more than 30 days after
that decision is rendered.

(d) Within 60 days after receipt of the

trial court’s decision, the Adminis-
trator by registered mail will—

(1) Notify the publisher that indem-

nification is required under this part;

(2) Request that the publisher appeal

the trial court’s adverse decision; or

(3) Notify the publisher that it is not

entitled to indemnification under this
part and briefly state the basis for the
denial.

§ 15.113

Indemnification agreements.

(a) Upon a finding of the Adminis-

trator that indemnification is required
under this part, and after obtaining the
concurrence of the United States De-
partment of Justice, the FAA will
promptly enter into an indemnification
agreement providing for the payment
of the costs specified in paragraph (c)
of this section.

(b) The indemnification agreement

will be signed by the Chief Counsel and
the publisher.

lisher for—

(1) Compensatory damages awarded

by the court against the publisher;

(2) Reasonable costs and fees, includ-

ing reasonable attorney fees at a rate
not to exceed that permitted under the
Equal Access to Justice Act (5 U.S.C.
504), and any postjudgment interest, if

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