Chapter 15, INDEMNIFICATION OF EMPLOYEES
[HISTORY: Adopted by the Board of Trustees
of the Village of Greenwood Lake 12-1-1980 by L.L. No. 6-1980. Amendments noted
where applicable.]
GENERAL REFERENCES
Code of Ethics -- See Ch. 9.
The purpose of this chapter is to provide legal and financial protection
for those individuals serving the Village of Greenwood Lake from losses which
may be brought against them in their individual capacity for actions taken
while in the performance of their official duties and responsibilities. In
enacting this chapter, the Board of Trustees finds that the State of New York
has enacted similar provisions for the legal and financial security of its
officers and employees and further finds that such security is also required
for local personnel. By enactment of this chapter, the Board of Trustees does
not intend to limit or otherwise abrogate any existing right or responsibility
of the Village of Greenwood Lake or its employees with regard to
indemnification or legal defense. It is solely the intent of this chapter to
provide similar coverage for local employees as is presently provided for state
employees, so as to continue to attract qualified individuals to local
government service.
As used in this chapter, unless the context otherwise requires, the
following terms shall have the meanings indicated:
EMPLOYEE -- Any person holding a
position by election, appointment or employment in the service of the Village
of Greenwood Lake, whether or not compensated, or a volunteer expressly
authorized to participate in a municipally sponsored volunteer program, but
shall not include an independent contractor. The term “employee” shall include
a former employee, his estate or judicially appointed personal representative.
§ 15-3. Duty to provide for defense;
exception.
A. Upon compliance by the employee with the
provisions of § 15-5 of this chapter, the Village of Greenwood Lake shall
provide for the defense of the employee in any civil action or proceeding in
any state or federal court arising out of an alleged act or omission which
occurred or is alleged in the complaint to have occurred while the employee was
acting within the scope of his public employment or duties, or which is brought
to enforce a provision of § 1981 or 1983 of Title 42 of the United States Code.
This duty to provide for a defense shall not arise where such civil action or
proceeding is brought by or on behalf of the Village of Greenwood Lake.
B. Subject to the conditions set forth in
Subsection A of this section, the employee shall be entitled to be represented
by the Village Attorney, provided, however, that the employee shall be entitled
to representation by private counsel of his choice in any civil judicial
proceeding whenever the Village Attorney determines, based upon his
investigation and review of the facts and circumstances of the case, that
representation by the Village Attorney would be inappropriate or whenever a
court of competent jurisdiction, upon appropriate motion or by a special
proceeding, determines that a conflict of interest exists and that the employee
is entitled to be represented by private counsel of his choice. The Village
Attorney shall notify the employee in writing of such determination that the
employee is entitled to be represented by private counsel of his choice. The
Village Attorney may require, as a condition to payment of the fees and
expenses of such representation, that appropriate groups of such employees be
represented by the same counsel. If the employee or group of employees is
entitled to representation by private counsel under the provisions of this
subsection, the Village Attorney shall so certify to the Village Board.
Reasonable attorneys‘ fees and litigation expenses shall be paid by the village
to such private counsel from time to time during the pendency of the civil
action or proceeding, subject to certification that the employee is entitled to
representation under the terms and conditions of this subsection by the head of
the department, commission, division, office or agency in which the employee is
employed and upon the audit and warrant of the Village Treasurer. Any dispute
with respect to representation of multiple employees by a single counsel or the
amount of litigation expenses or the reasonableness of attorneys’ fees shall be
resolved by the court upon motion or by way of a special proceeding.
C. Where the employee delivers process and a
request for a defense to the Village Attorney as required by § 15-5 of this
chapter, the Attorney shall take the necessary steps, including the retention of
private counsel under the terms and conditions provided in Subsection B of this
section, on behalf of the employee to avoid entry of a default judgment pending
resolution of any question pertaining to the obligation to provide for a
defense.
§ 15-4. Amount of judgments and settlements;
private counsel.
A. The Village of Greenwood Lake shall indemnify
and save harmless its employees in the amount of any judgment obtained against
such employees in any state or federal court or in the amount of any settlement
of a claim, provided that the act or omission from which such judgment or
settlement arose occurred while the employee was acting within the scope of his
public employment or duties. The duty to indemnify and save harmless prescribed
by this section shall not arise where the injury or damage resulted from
intentional wrongdoing or recklessness on the part of the employee.
B. An employee represented by private counsel
shall cause to be submitted to the Board of Trustees any proposed settlement
which may be subject to indemnification by the Village of Greenwood Lake, and
if not inconsistent with the provisions of this section, the Mayor shall
certify such settlement and submit such settlement and certification to the
Village Attorney. The Attorney shall review such proposed settlement as to form
and amount and shall give his approval if in his judgment the settlement is in
the best interest of the Village of Greenwood Lake. Nothing in this section
shall be construed to authorize the Village of Greenwood Lake to indemnify or
save harmless an employee with respect to a settlement not so reviewed and
approved by the Village Attorney.
C. Upon entry of a final judgment against the
employee or upon the settlement of the claim, the employee shall cause to be
served a copy of such judgment or settlement, personally or by certified or
registered mail within 30 days of the date of entry or settlement, upon the
Mayor; and if not inconsistent with the provisions of this section, such
judgment or settlement shall be certified for payment by such Mayor. If the
Attorney concurs in such certification, the judgment or settlement shall be
paid upon the audit and warrant of the Village Treasurer.
§ 15-5. Conditions for defense.
The duty to defend or indemnify and save harmless provided by this
chapter shall be conditioned upon delivery to the Village Attorney, at his
office, by the employee of the original or a copy of any summons, complaint,
process, notice, demand or pleading within five days after he is served with
such document; and full cooperation of the employee in the defense of such
action or proceeding and in defense of any action or proceeding against the
state based upon the same act or omission and in the prosecution of any appeal.
Such delivery shall be deemed a request by the employee that the Village of
Greenwood Lake provide for his defense pursuant to this chapter.
§ 15-6. Limitation of benefits.
The benefits of this chapter shall inure only to employees as defined
herein and shall not enlarge or diminish the rights of any other party, nor
shall any provision of this chapter be construed to affect, alter or repeal any
provision of the Workers‘ Compensation Law.
§ 15-7. Effect on insurance policies.
The provisions of this chapter shall not be construed to impair, alter,
limit or modify the rights and obligations of any insurer under any policy of
insurance.
The provisions of this chapter shall apply to all actions and
proceedings pending upon the effective date thereof or thereafter instituted.
Except as otherwise specifically provided in this chapter, the
provisions of this chapter shall not be construed in any way to impair, alter,
limit, modify, abrogate or restrict any immunity available to or conferred upon
any unit, officer or employee of the Village of Greenwood Lake or any right to
defense and/or indemnification provided for any governmental officer or
employee by, in accordance with, or by reason of, any other provision of state
or federal statutory or common law.