[Adopted 8-31-2004 by L.L. No. 1-2004]
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, including members of appointed boards, and volunteers expressly authorized to participate in a Town publicly sponsored volunteer program, whether or not compensated, but shall not include an independent contractor. The term "employee" shall include a former employee, his estate or judicially appointed personal representative.
MEMBERS OF APPOINTED BOARDS
Includes the current and former members of the Town of Highland Planning Board, the Town of Highland Zoning Board of Appeals, and any other board or commission to be created by the Town whose members are responsible for regulating activities in the Town or are responsible for providing services.
PARTY
Any person who was, is, or is threatened to be made a named defendant in a proceeding.
TOWN
The Town of Highland, Sullivan County.
A. 
Upon compliance by the employee with the provisions of § 126-3 of this article, the Town shall provide for the defense of any employee who is a party to 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 Sections 1981 and 1983 of the United States Civil Rights Act (42 U.S.C. §§ 1981 and 1983); provided, however, no such defense shall be provided where such civil action or proceeding is brought by, at the behest of, or on behalf of the Town.
B. 
The Town shall not have a duty to defend the employee where the Town is the plaintiff in the lawsuit, or the suit is a criminal action against the employee for activities related to the employee's performance in his or her employment. The Town, however, shall reimburse the employee for all legal expenses, including attorney fees, if a court from which an appeal cannot be, or is not, taken finds for the employee.
C. 
Subject to the conditions set forth in this article, the employee shall be represented by an attorney employed or retained by the Town for the defense of the employee. 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 Board 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 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.
D. 
Where the employee delivers process and a request for a defense to the Town Supervisor as required by § 126-4, the Town Board shall take the necessary steps, including the retention of an attorney under the terms and conditions provided in Subsection A, 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.
A. 
Whenever a civil action is brought against any employee of the Town for any action or omission arising out of or in the course of the performance of the duties of such office, position or employment, the Town shall provide payment of that portion of any compensatory damage award or settlement otherwise covered by a policy of insurance which has not been paid because of a deductible provision in said policy; provided that the act or omission from which such judgment or claim arose occurred while the employee was acting within the scope of his public employment or duties, as alleged in the complaint or as determined by the court; and provided, further, that in the case of a settlement, the duty to indemnify and hold harmless shall be conditioned upon the approval of the amount of settlement by the Town Board.
B. 
Except as otherwise provided by law, the duty to indemnify and hold harmless prescribed by this section shall not arise where the injury or damage resulted from intentional wrongdoing or recklessness on the part of the employee.
C. 
Nothing in this section shall authorize the Town to indemnify or hold 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; provided, however, that the Town shall indemnify and hold 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 an employee, acting within the scope of his public employment or duties, has, without willfulness or intent on his part, violated a prior order, judgment, consent decree or stipulation of settlement entered in any court of this state or of the United States.
D. 
Upon 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 or settlement, upon the Town Supervisor; and if not inconsistent with the provisions of this section, the amount of such judgment or settlement shall be paid by the public entity.
E. 
Employees shall not be liable for the loss of or damage to Town assets in the possession of the employee, provided that the employee came into possession of the asset as part of the employee's job, responsibility or assignment; and the employee adhered to instructions or Town rules for handling such asset or, in the absence of such instructions or rules, the employee was not negligent in handling such asset.
The duties to defend and indemnify provided in this article shall be contingent upon:
A. 
Delivery to the Town Supervisor of the original copy of any summons, complaint, process, notice, demand or pleading within five days after the employee is served with such document. 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.
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.
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 provisions of this article are not in any way intended to affect the obligation of any claimant to give notice to the Town under § 50(e) of the General Municipal Law, or any other provision of the law.
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 provided for any governmental officer or employee by or in accordance with 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.