[Code of Federal Regulations]
[Title 14, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR15.113]

[Page 81-82]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 15--ADMINISTRATIVE CLAIMS UNDER FEDERAL TORT CLAIMS ACT--Table of Contents
 
 Subpart B--Indemnification Under Section 1118 of the Federal Aviation 
                               Act of 1958
 
Sec. 15.113  Indemnification agreements.

    (a) Upon a finding of the Administrator that indemnification is 
required under this part, and after obtaining the concurrence of the 
United States Department 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.
    (c) The FAA will indemnify the publisher for--
    (1) Compensatory damages awarded by the court against the publisher;
    (2) Reasonable costs and fees, including 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

[[Page 82]]

the publisher conducts a good faith defense, or pursues a good faith 
appeal, at the request, or with the concurrence, of the FAA.
    (d) Except as otherwise provided in this section, the FAA will not 
indemnify the publisher for--
    (1) Punitive or exemplary damages;
    (2) Civil or criminal fines or any other litigation sanctions;
    (3) Postjudgment interest;
    (4) Costs;
    (5) Attorney fees; or
    (6) Other incidental expenses.
    (e) The indemnification agreement must provide that the Government 
will be subrogated to all claims or rights of the publisher, including 
third-party claims, cross-claims, and counterclaims.