[Adopted 2-10-1981 by L.L. No. 1-1981]
As used in this article, 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 Town, whether or not compensated, or a volunteer expressly authorized to participate in a Town-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.
TOWN
The Town of Smithtown.
A. 
Upon compliance by the employee with the provisions of § 53-3 of this article, 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 42 U.S.C. § 1981 or 1983. Such defense shall not be provided where such civil action or proceeding is brought by or on behalf of the Town.
B. 
Representation.
(1) 
Subject to the conditions set forth in this article, the employee shall be represented by the Town Attorney or an attorney employed or retained by the Town for the defense of the employee. The Town Board shall employ or retain an attorney for the defense of the employee whenever:
(a) 
The Town does not have a Town Attorney;
(b) 
The Town Board determines based upon its investigation and review of the facts and circumstances of the case that representation by the Town Attorney would be inappropriate; or
(c) 
A court of competent jurisdiction determines that a conflict of interest exists and that the employee cannot be represented by the Town Attorney.
(2) 
Reasonable attorney's fees and litigation expenses shall be paid by the Town to such attorney employed or retained from time to time during the 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 article. 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. 
Where the employee delivers process and a request for a defense to the Town Attorney (or, if none, then to the Town Supervisor) as required by § 53-3 of this article, 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.
The duties to defend (indemnify and save harmless) provided in this article shall be contingent upon:
A. 
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 he is served with such document; and
B. 
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. Such delivery shall be deemed a request by the employee that the Town provide for his defense pursuant to this article, unless the employee shall state, in writing, that a defense is not requested.
A. 
The Town shall indemnify and save harmless any employee whose defense was provided pursuant to this article 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:
(1) 
Where the injury or damage resulted from intentional wrongdoing or recklessness on the part of the employee.
(2) 
For any punitive or exemplary damages, fines or penalties.
(3) 
For money recovered from the employee pursuant to § 51 of the General Municipal Law.
B. 
Any 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. 
Upon entry of a 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 30 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 article 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 article be construed to affect, alter or repeal any provisions of the Workers' Compensation Law.
The benefits of this article shall be extended to an employee of a negotiating unit for which an agreement has been negotiated pursuant to Civil Service Law Article 14.
The provisions of this article shall not be construed to impair, alter, limit or modify the rights and obligations of any insurer under any policy of insurance.
As otherwise specifically provided in this article, the provisions of this article 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/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.
The provisions of this article shall apply to all actions and proceedings specified herein which have been commenced, instituted or brought on or after the effective date of this article.