Jason Deocampo v. Jason Potts

Does a municipality’s bankruptcy plan of adjustment automatically discharge a judgment against individual officers for exces-sive force by operation of a California stat-ute generally requiring public entities to defend and indemnify their employees for actions within the scope of their employment?

Like many a city in the wake of the 2007-08 financial crisis, the city of Vallejo, California found itself burdened by mount-ing debts as its tax base shrank. In 2008, Vallejo responded by petitioning for Chap-ter 9 bankruptcy, a form of relief available only to municipalities. Some two years af-ter the bankruptcy court confirmed Valle-jo’s debt-adjustment plan, a federal jury found that two police officers employed by Vallejo used constitutionally excessive force when they arrested Jason Eugene Deocampo. In accordance with the verdict, the district court entered a judgment for money damages against the officers in their personal capacities, and awarded Deocampo his attorney’s fees.

Under California law, Vallejo is generally obligated to indemnify its employees for claims against them arising from their em-ployment. We hold that where, as here, the plan confirmed by the…