[HISTORY: Adopted by the Town Board of the Town of Saugerties 10-3-1985 by L.L. No.
3-1985 (Ch. 4 of the 1975 Municipal Code). Amendments
noted where applicable.]
This chapter shall be entitled "A Local Law Providing for the
Defense and Indemnification of Officers and Employees of the Town
of Saugerties."
As used in this chapter, the following terms shall have the
meanings indicated, unless the context requires otherwise:
Any person holding a position by election, appointment or
employment in the service of the Town, but shall not include a volunteer,
any person not compensated for his services or an independent contractor.
The term "employee" shall include a former employee, his estate or
his judicially appointed personal representative.
The Town of Saugerties.
A.Â
Upon compliance by the employee with the provisions of this chapter,
the Town shall provide for the defense of the employee in any civil
action or proceeding in any state or federal court arising out of
any alleged act or omission which occurred or is alleged in the complaint
to have occurred while the employee was acting or in good faith purporting
to act within the scope of his public employment or duties, or which
is brought to enforce a provision of Section 1981 or 1983 of Title
42 of the United States Code. Such defense shall not be provided where
such civil action is brought by or on behalf of the Town pursuant
to authorization of the Town Board.
B.Â
Subject to the conditions set forth in the chapter, the employee
shall be represented by the Town Attorney or an attorney employed
or retained by the Town for the defense of the employee. Reasonable
attorney's fees and litigation expenses shall be paid by the
Town to such attorney employed or retained, from time to time, during
pendency of the civil action or proceeding, subject to certification
by the Town Supervisor that the employee is entitled to representation
under the terms and conditions of this chapter. Payment of such fees
and expenses shall be made in the same manner as payment of other
claims and expenses of the Town. Any dispute with respect to representation
of multiple employees by the Town Attorney or by an attorney employed
or retained for such purposes or with respect to the amount of the
fees or expenses shall be resolved by the court.
C.Â
Where the employee delivers process and a request for a defense to the Town Attorney or, if none, to the Town Supervisor as required by § 13-4 of this chapter, the Town Attorney or the Supervisor, as the case may be, shall take the necessary steps including the retention of an attorney 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 relating to the obligation of the Town to provide a defense.[1]
The duties to defend and indemnify and save harmless provided
in this chapter shall be contingent upon:
A.Â
Delivery to the Town Attorney or, if, none to the Town Supervisor
of the original or a copy of any summons, complaint, process, notice,
demand or pleading within five days after the employee is served with
such document. Such delivery shall be deemed a request by the employee
that the Town provide for his defense pursuant to this chapter, unless
the employee shall state in writing that a defense is not requested;
and
B.Â
The full cooperation of the employee in the defense of such action
or proceeding and defense of any action or proceeding against the
Town based upon the same act or omission and in the prosecution of
any appeal.
A.Â
The Town shall indemnify and save harmless any employee whose defense
was provided pursuant to this chapter in the amount of any judgment
obtained against such employee or in the amount of any settlement
or compromise approved by the Town Board. The Town shall not indemnify
and save harmless the employee:
B.Â
The claim or compromise settlement which may be subject to indemnification
by the Town shall not be paid unless it is presented to and approved
by the Town Board.
C.Â
Upon entry of final judgment against the employee, or upon settlement
or compromise of a claim as approved by the Town Board, the employee
shall cause to be served upon the Town Supervisor a copy of such judgment
or settlement, personally or by certified or registered mail, within
10 days of the date of entry or settlement. Such judgment or settlement
shall be processed and paid in the same manner as other judgments
or settlements of claims are paid by the Town.
The benefits of this chapter will 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 provisions of the Workers' Compensation
Law.
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 not be construed in any
way to impair, alter, limit, modify, abrogate or restrict any immunity
available to or conferred upon any unit, entity, officer or employee
of the Town or any right to defense and 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.
The provisions of this chapter shall apply to all actions and
proceedings specified herein which have been commenced, instituted
or brought on or after the effective date of this chapter.