[HISTORY: Adopted by the Board of Trustees of the Village of Fair Haven 7-5-1988 by L.L. No. 1-1988. Amendments noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 11.
The authority for Local Law No. 1 of the Year 1988 of the Village of Fair Haven is § 18 of the Public Officers Law of the State of New York.
The purpose of this chapter is to provide for the defense and indemnification of the public officers and employees of the Village of Fair Haven.
As used in this chapter, the following terms shall have the meanings indicated:
EMPLOYEE
Any 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 Village of Fair Haven, whether or not compensated, but shall not include any independent contractor. The term "employee" shall include a former employee, his estate or judicially appointed personal representative.
A. 
Upon compliance by the employee with the provisions of § 7-6 of this chapter, the Village of Fair Haven shall provide for the defense of the employee in any civil 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 public employment or duties. This duty to provide for defense shall not arise if such a civil action or proceeding is brought by or at the behest of the Village of Fair Haven, employing such person.
B. 
Subject to the conditions set forth in Subsection A of this section, the employee shall be entitled to be represented by private counsel of his choice in any civil action or proceeding, whenever the chief legal officer of the Village of Fair Haven or other counsel designated by the Village of Fair Haven, determines that a conflict of interest arises, or whenever a court, upon appropriate motion or otherwise by a special proceeding, determines that a conflict of interest exists, and that the employee is entitled to be represented by counsel of his choice; provided, however, that the chief legal officer or other counsel designated by the Village of Fair Haven 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. Reasonable attorneys' fees and litigation expenses shall be paid by the Village of Fair Haven to such private counsel, from time to time, during the pendancy of the civil action or proceeding, with the approval of the Board of Trustees of the Village of Fair Haven.
C. 
Any dispute in respect to representation of multiple employees by a single counsel or the amount of litigation expenses or the reasonableness of attorneys' fees should be resolved by the court upon motion or by way of special proceedings.
D. 
Where the employee delivers process and a written request for defense to the Village of Fair Haven under § 7-6 of this chapter, the Village of Fair Haven shall take the necessary steps on behalf of the employee to avoid entry of a default judgment pending resolution of any question pertaining to the obligation to provide for defense.
A. 
The Village shall indemnify and save harmless its employees in the amount of any judgment obtained against any such employees in state or federal court, or in the amount of any settlement of a claim, provided that the act or omission for which said judgment or claim arose occurred while the employee was acting within the scope of his employment or duties; provided, further, that in the case of the settlement, the duty to indemnify and save harmless shall be conditioned upon the approval of the amount of settlement by the Board of Trustees of the Village of Fair Haven.
B. 
Except as otherwise provided by law, this duty to indemnify and save harmless described by this section shall not arise where the injury or damages resulted from intentional wrongdoing, or recklessness on the part of the employee.
C. 
Nothing in this section shall authorize the Village of Fair Haven to indemnify or save harmless an employee with respect to punitive or exemplary damages, fines or penalties, or money recovered from an employee pursuant to § 51 of the General Municipal Law of the State of New York.
D. 
Upon entry of a final judgment against the employee, or upon settlement of the claim, the employee shall serve a copy of such judgment or settlement, personally or by certified or registered mail, within 30 days of the date of the entry or settlement upon the Mayor of the Village of Fair Haven, and if not inconsistent with the provisions of this section, the amount of such judgment or settlement shall be paid by the Village of Fair Haven.
The duty to defend or indemnify and save harmless prescribed by this chapter shall be conditioned upon:
A. 
The delivery by the employee to the chief legal officer of the Village of Fair Haven, or to the Mayor of the Village of Fair Haven, of a written request to provide for his defense, together with the original or a copy of any summons, complaint, process, notice, demand or pleading within 10 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 in defense of such action or proceeding against the Village of Fair Haven based upon the same act or omission, and in the prosecution of any appeal.
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 appeal any provision of the Workers' Compensation Law of the State of New York.
This chapter shall not in any way affect the obligation of any claimant to give notice to the Village of Fair Haven under § 10 of the Court of Claims Act, § 50-e of the General Municipal Law, or any other provision of law.
The Village of Fair Haven shall be authorized and empowered to purchase insurance from any insuring 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 section or of this chapter, or to act as a self-insurer with respect thereto.
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.
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.
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 Village of Fair Haven in accordance with or by reason of any other provision of state or federal statutory or common law.
Benefits accorded to employees under this chapter shall be in lieu of and take the place of defense or indemnification protection accorded to the same public employees by another enactment, unless the Board of Trustees of the Village of Fair Haven shall have provided that these benefits shall supplement and be available in addition to defense or indemnification protection conferred by another enactment.
If any provision of this chapter or the application thereof to any person or circumstance be held unconstitutional or invalid in whole or in part by any court such holding of unconstitutionality or invalidity shall in no way affect or impair any other provision of this chapter, or the application of any such provision to any other person or circumstance.
This chapter shall take effect immediately upon filing with the Secretary of the State of New York.