[Adopted 11-1-1983 by L.L. No. 5-1983; amended in its entirety 7-24-2000 by L.L. No. 6-2000]
As used in this article, the following terms shall have the meaning indicated:
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 Town, whether or not compensated. The term "employee" shall include a former employee, his/her estate or judicially appointed personal representative.
VILLAGE
The Village/Town of Mount Kisco, its departments and agencies.
A. 
Upon compliance by the employee with the provisions of § 20-10 of this article, the Village shall provide for the defense of an employee in any state or federal court action or proceeding, or any administrative proceeding or action, including but not limited to a proceeding brought to enforce a provision of 42 U.S.C. §§ 1981 or 1983, arising out of any alleged act or omission that occurred or is alleged in the complaint to have occurred while the employee was acting in good faith within the apparent scope of his or her public employment or duties. This duty to provide for a defense shall not arise where such civil or administrative action or proceeding is brought by or on behalf of the Village.
B. 
Subject to the conditions set forth in Subsection A above, the employee shall be entitled, at the option of the Village Board, to be represented by private counsel of his or her choice or counsel selected by the Village Board in any civil judicial or administrative action or proceeding. The Village may require, as a condition to payment of the fees and expenses of such representation, that appropriate groups of employees be represented by the same counsel. Reasonable attorneys' fees and litigation expenses shall be paid by the Village to authorized private counsel from time to time during the pendency of the action or proceeding, subject to the usual audit.
C. 
Any dispute with respect to representation of multiple employees and any other municipal defendants by a single counsel or the amount of litigation expenses or the reasonableness of attorneys' fees shall be resolved by the Village Board, which decision shall be final.
D. 
Notwithstanding Subsection B above, if the claim or cause of action alleged against the employee is within the coverage of any liability insurance policy issued to the Village, the employee shall accept representation by counsel selected in accordance with the terms of such policy.
E. 
Where the employee delivers process and a written request or a defense to the Village as required by § 20-9 of this article, the Village shall take the necessary steps to avoid entry of a default judgment pending resolution of any question pertaining to the obligation to provide for a defense.
A. 
The Village shall indemnify and save harmless its employees in the amount of any judgment, fine or levy obtained against such employees or in the amount of any authorized settlement of a claim, provided that the act or omission from which such judgment, fine, levy or settlement arose occurred while the employee was acting in good faith within the apparent scope of his or her public employment or duties; the duty to indemnify and save harmless prescribed by this provision 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 Village Board any proposed settlement that may be subject to indemnification by the Village and, if not inconsistent with the provisions of this article, the Village Board shall give its approval if in its judgment the settlement is in the best interests of the Village. Nothing in this article shall be construed to authorize the Village to indemnify or save harmless an employee with respect to a settlement not so reviewed and approved by the Village Board.
C. 
Upon entry of a final judgment against an 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 Village Manager's office and, if not inconsistent with the provisions of the article, such judgment or settlement shall be certified for payment.
D. 
The Village 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 Village Attorney:
(1) 
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 Village Attorney and upon the Village Manager on behalf of the Village Board. The Village Board shall meet as soon as practicable to review, make findings and determine if all the following conditions have been met and, if so, 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 or 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 within the Village;
(c) 
At the time of the act or omission, the employee acted in good faith and in the best interests of the Village; and
(d) 
At the time of the act or omission, the employee did not willfully violate a clearly established provision of law or Village policy.
(2) 
Except as otherwise required by federal or state law, deliberations by the Village Board shall be held in executive session, and the findings and determination of the Village Board shall remain confidential.
The duty to defend or indemnify and save harmless prescribed by this article shall be conditioned upon:
A. 
Delivery by the employee to the Village Attorney of a written request to provide for his or her defense, together with the original or a copy of any summons, complaint, process, notice, demand or pleading within 10 days after being served with such document; and
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 Village based upon the same act or omission and in the prosecution of any appeal.
A. 
The benefits of this article shall inure only to employees as defined in this article and shall not enlarge or diminish the rights of any other party, and no provisions of this article shall be construed to affect, alter or repeal any provision of the Workers' Compensation Law.
B. 
The Village is hereby authorized and empowered to purchase insurance from any insurance company created by or under the laws of this state or authorized to transact business in this state against any liability imposed by the provisions of this article, or to act as a self-insurer with respect thereto.
C. 
All payments made under the terms of this article, 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.
D. 
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.
E. 
This article shall not affect in any way the obligation of any claimant to give notice to the Village under § 10 of the Court of Claims Act, § 50-e of the General Municipal Law or any provision of law.
F. 
Except 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 to liability available to or conferred upon any unit, entity, officer or employee of the Village by, in accordance with or by reason of any other provision of state or federal statutory or common law.
G. 
Benefits accorded to employees under this article shall be in lieu of and take the place of defense or indemnification protections accorded the same employees by another enactment, including Public Officers Law § 18.
If any provision of this article or its application 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 article or the application of any of its provisions to any other person or circumstance.
A. 
The provisions of this article shall apply to all actions and proceedings pending upon the effective date of this article or instituted hereafter.
B. 
This article shall become effective upon filing with the Secretary of State.