This chapter provides for the defense and indemnification
of municipal officials, appointees and employees of the Town of Rhinebeck
who are sued for alleged acts or omissions occurring while they are
acting within the scope of their appointment or official duties and
responsibilities. In enacting this chapter, the Town Board of the
Town of Rhinebeck finds that the State of New York has enacted similar
provisions for the legal and financial security of its officers and
employees and further finds that such security is also required for
local personnel. It is the intent of this chapter to provide similar
civil suit coverage for Town of Rhinebeck employees as is presently
provided for state employees, so as to continue to attract qualified
individuals to local government service.
As used in this chapter, the following terms shall have the
meanings indicated:
COURT
Any federal, state or local court or administrative agency.
EMPLOYEE
Any elected official, 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 of Rhinebeck, whether or not
compensated or working full-time or part-time, but shall not include
the sheriff of any county, or an independent contractor, or member
of any police force maintained by any other municipality. "Employee"
shall also include a former employee of the Town of Rhinebeck, his
estate or judicially appointed personal representative.
TOWN
The Town of Rhinebeck.
Upon the entry of a final judgment against the employee, or
upon the 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 entry for such judgment or settlement,
upon the Town and upon the Attorney for Town and, if not inconsistent
with the provisions of this chapter, the amount of such judgment or
settlement shall be paid by the Town.
The Town shall defend, indemnify, and save harmless its employees in the amount of any punitive or exemplary damages, fines or penalties arising from a claim pursuant to §
11-4 of this chapter, in accordance with the following procedure and such additional procedures as may be established by the Attorney for the Town:
A. In the event
of a final judgment of punitive or exemplary damages, fines or penalties
against the employee, the employee shall serve copies of such judgment
personally or by certified or registered mail within 30 days of the
date of entry upon the Attorney for the Town and upon the Town Clerk
on behalf of the Town Board. The Town Board shall meet as soon as
practicable, in executive session which shall remain confidential,
to review, make findings, and determine if all the following have
been met and, if so met, shall appropriate the funds necessary to
pay such punitive or exemplary damages, fines or penalties:
(1) The
judgment of punitive or exemplary damages, fines or penalties is based
on an act or omission of an employee acting within the scope of his/her
employment;
(2) 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 Town;
(3) At the
time of the act or omission, the employee acted in good faith and
in the best interests of the Town; and
(4) At the
time of the act or omission, the employee did not willfully violate
a clearly established provision of law or Town policy.
B. Notwithstanding
the foregoing, the provisions hereof shall not be construed to authorize
the Town 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.
The duty to defend, indemnify and save harmless provided by §
11-4 of this chapter shall be conditioned upon: (i) delivery to the Town Clerk, at Town Hall, or to the Attorney for the Town, at his office, of the original and a copy of all papers served upon the employee, including any summons, complaint, process, notice, demand or other pleading or writ within 10 days after the service has been made, and (ii) the full cooperation of the employee in the defense of such action or proceeding, in 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 chapter.
Where the employee delivers the papers served upon him to the Attorney for the Town in accordance with the provisions set forth in §
11-7 of this chapter, the Attorney for the Town shall take the necessary steps, including the retention of private counsel, where appropriate, under the terms and conditions provided in §
11-4D of this chapter, on behalf of the employee to avoid entry of a default judgment, pending resolution of any question pertaining to the obligation to provide for a defense.
The Town is authorized and empowered to purchase insurance to
cover the costs of such defense and indemnification or to act as a
self-insurer with respect thereto. 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.
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.