City of New Rochelle, NY
Westchester County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Council of the City of New Rochelle 9-16-1997 by L.L. No. 13-1997.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Settlement of claims — See Ch. 20
Personnel — See Ch. 52.
[1]
Editor's Note: The preamble of this local law reads as follows:  
"WHEREAS, the City Council of the City of New Rochelle adopted Resolution No. 259 on September 15, 1981, conferring the defense and indemnification benefits provided by Chapter 277 of the Laws of 1981, also known as 'Section 18 of the Public Officers Law,' upon all officers and employees of the City; and 
"WHEREAS, said Resolution No. 259 of September 15, 1981, provides that the benefits accorded under such enactment supplement and are available in Addison to defense or indemnification conferred by any other enactment; and 
"WHEREAS, the City Council wishes to confirm its ongoing confidence in City officers and employees in carrying out their respective responsibilities and duties in good faith and in the best interests of the City, and to ensure that City officers and employees acting within the scope of their employment shall be fully defended and indemnified by the City against claims brought against them, by enacting defense and indemnification benefits in supplement to those provided under Section 18 of the Public Officers Law; now, therefore 
"BE IT ENACTED by the City of New Rochelle, New York as follows: 
"Section 1. A local law is hereby adopted providing for supplemental defense and indemnification of officers and employees of the City of New Rochelle to read as follows."

§ 29-1 Definitions.

As used in this chapter, unless the context otherwise requires:
CITY
The City of New Rochelle, its departments and agencies.
EMPLOYEE
Any commissioner, member of a public board or commission, trustee, director, officer, employee, volunteer expressly authorized to participate in a publicly sponsored volunteer program or any other person holding a position by election, appointment or employment in the service of the City, whether or not compensated. The term "employee" shall include a former employee, his/her estate or judicially appointed personal representative.

§ 29-2 Supplemental defense.

Upon compliance by the employee with the provisions of § 29-4 of this chapter, the City shall provide for the defense of the employee in any civil administrative action or proceeding, state or federal, arising out of any alleged act or omission which occurred or allegedly occurred while the employee was acting within the scope of his/her public employment or duties. This duty to provide for a defense shall not arise where such civil administrative action or proceeding is brought by or at the behest of the City.

§ 29-3 Supplemental indemnification.

A. 
The City shall indemnify and save harmless its employees in the amount of any judgment obtained against such employees in a state or federal civil administrative action or proceeding or in the amount of any settlement of a claim, provided that the act or omission from which such judgment or claim arose occurred while the employee was acting within the scope of his/her public employment or duties; provided, further, that in the case of a settlement the duty to indemnify and save harmless shall be conditioned upon the approval of the amount of settlement by the City. The duty to indemnify and save harmless prescribed by this section shall not arise where the injury or damage resulted from intentional wrongdoing, maliciousness or recklessness on the part of the employee.
B. 
The City shall indemnify and save harmless its employees in the amount of any costs, attorneys fees, damages, fines or penalties which may be imposed by reason of an adjudication that any employee acting within the scope of his/her public employment or duties has, without willfulness or intent on his/her part, violated a prior order, judgment, consent decree or stipulation of settlement entered in any civil administrative action or proceeding of this state or of the United States.
C. 
The City shall also indemnify and save harmless its employees in the amount of any punitive damages in accordance with the following procedure and such additional procedures as may be established by the Corporation Counsel:
(1) 
Within 20 days of an employee's delivery of a summons or complaint, process, notice, demand or pleading containing a demand for punitive damages, the Corporation Counsel shall make findings and an initial determination whether the employee should or should not be indemnified against any punitive damages, based upon the facts and circumstances then known to the Corporation Counsel as follows:
(a) 
Whether the employee's actions were or were not within the scope of his/her employment.
(b) 
Whether the employee's actions were or were not reckless, malicious, grossly negligent or otherwise outside of the standards required for employees holding comparable positions with the City.
(c) 
Whether the employee's actions were or were not made in good faith and in the best interests of the City.
(d) 
Whether the employee did or did not willfully violate a clearly established provision of law or City policy.
(2) 
In the event that the Corporation Counsel is a named defendant in an action or proceeding or cannot serve for any other reason, the Deputy Corporation Counsel shall serve in stead of the Corporation Counsel on the matter under review. In the event that neither the Corporation Counsel nor the Deputy Corporation Counsel can serve, the City Manager shall appoint another City commissioner to serve in stead of the Corporation Counsel on the matter under review.
(3) 
In the event of a final judgment of punitive damages against the employee, the employee shall serve copies of such judgment personally or by certified or registered mail within 10 days of the date of entry upon the Corporation Counsel and upon the City Clerk on behalf of the City Council. The City Council shall meet as soon as practicable in executive session to review, make findings, taking into consideration and giving weight to the initial and any additional findings made by the Corporation Counsel (provided the employee did not formerly misrepresent or omit material facts evidenced at trial), and determine if the following have been met and, if so met, shall appropriate the funds necessary to pay such punitive damages:
(a) 
The judgment of punitive damages is based on an act or omission of an employee acting within the scope of his/her employment;
(b) 
At the time of the action or omission giving rise to the liability, the employee acted without recklessness, without maliciousness and without gross negligence and otherwise within the standards required for employees holding comparable positions with the City;
(c) 
At the time of the act or omission, the employee acted in good faith and in the best interests of the City; and
(d) 
At the time of the act or omission, the employee did not willfully violate a clearly established provision of law or City policy.
(4) 
Deliberations, findings and determinations of the Corporation Counsel and City Council shall remain confidential.

§ 29-4 Conditions.

The duty to defend or indemnify and save harmless prescribed by this chapter shall be conditioned upon:
A. 
Delivery by the employee to the Corporation Counsel of a written request to provide for his/her defense, together with the original or a copy of any summons, complaint, process, notice, demand or pleading, within 10 days after he/she is served with such document.
B. 
The full cooperation of the employee in the defense of such action or proceeding and in defense of any action or proceeding against the City based upon the same act or omission and in the prosecution of any appeal.

§ 29-5 Affect on other rights, provisions and obligations.

A. 
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.
B. 
This chapter shall not in any way affect the obligation of any claimant to give notice to the City under § 10 of the Court of Claims Act, § 50-e of the General Municipal Law or any other provision of law.

§ 29-6 Purchase of insurance authorized.

The City Manager is hereby authorized and empowered to purchase insurance from any insurance company created by or under the laws of this state or authorized by law to transact business in this state, against any liability imposed by the provisions of this chapter, or to act as a self-insurer with respect thereto.

§ 29-7 Payments to be for public purpose.

All payments made under the terms of this chapter, whether for insurance or otherwise, shall be deemed to be for a public purpose and shall be audited and paid in the same manner as other public charges.

§ 29-8 Affect on insurer.

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.

§ 29-9 Affect on immunity to liability.

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 to liability available to or conferred upon any unit, entity, officer or employee of the City by, in accordance with, or by reason of, any other provision of state or federal statutory or common law.

§ 29-10 Benefits to be supplemental.

Benefits accorded to employees under this chapter shall be in supplement to defense or indemnification protection accorded the same employees by other enactment.

§ 29-11 Applicability.

This chapter shall apply to all actions or proceedings in which final judgment has not yet been entered.