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PAGE 23 9/27/2016

PAGE 24Legal Update

Defense and Indemnity– Chang v. County of Los Angeles (2016)
1 Cal.App.5th 25

FACTS

• Three deputies were sued for assault and battery.
• The County provided a defense under a reservation of rights.
• At the conclusion of the civil trial, the jury found against the deputies

and awarded punitive damages against them as well.
• The County declined to pay the judgment against the deputies.
• The deputies then sued the County over payment of the non-punitive

damage awards that were assessed against them.
• The trial court ruled in favor of the deputies.

Legal Update

Defense and Indemnity– Chang v. County of Los Angeles (2016) 1
Cal.App.5th 25

Holding

• The County’s reservation of rights was sufficient as the
employees acted with actual malice. Government Code
Section 825.2 provides that an employee may recover for
indemnification if the entity fails to establish the employee
acted out of actual fraud, corruption, or actual malice.

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