[HISTORY: Adopted by the Board of Trustees of the Village of Solvay 6-25-1991 by L.L. No. 2-1991.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 15.
Officers and employees — See Ch. 26.
[1]
Editor's Note: This local law also superseded former Ch. 7, Defense and Indemnification, adopted 5-13-1980 by L.L. No. 1-1980.
The purpose of this chapter is to provide legal and financial protection for those individuals serving the Village of Solvay from losses which may be brought against them in their individual capacity for actions taken while in the performance of their official duties and responsibilities. In enacting this chapter, the Board of Trustees 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. By enactment of this chapter the Board of Trustees does not intend to limit or otherwise abrogate any existing right or responsibility of the village or its employees with regard to indemnification or legal defense. It is solely the intent of this chapter to provide similar coverage for local employees as is presently provided for state employees, so as to continue to attract qualified individuals to local government services, pursuant to § 18 of the Public Officers Law, Defense and indemnification of officers and employees of public entities.
As used in this chapter, unless the context otherwise requires, the following terms shall have the meanings 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 a public entity, whether or not compensated, but shall not include the sheriff of any county or an independent contractor. The term "employee" shall include a former employee, his estate or judicially appointed personal representative.
GOVERNING BODY
The board or body in which the general legislative, governmental or public boards of the public entity are vested and by authority of which the business of the public entity is conducted.
PUBLIC ENTITY
A county, city, town, village or any other political subdivision or civil division of the state; a school district, Board of Cooperative Educational Services or any other governmental entity or combination or association of governmental entities operating a public school, college, community college or university; a public improvement or special district; a public authority, commission, agency or public benefit corporation; or any other separate corporate instrumentality or unit of government; but shall not include the State of New York or any other public entity, the officers and employees of which are covered by § 17 of the Public Officers Law or by defense and indemnification provisions of any other state statute taking effect after January 1, 1979.
The provisions of this chapter shall apply to any public entity:
A. 
Whose governing body has agreed, by adoption of a local law, bylaw, resolution, rule or regulation, to confer the benefits of this chapter upon its employees and to be held liable for the costs incurred under these provisions; or
B. 
Where the governing body of a municipality, for whose benefit the public entity has been established, has agreed, by the adoption of a local law or resolution, to confer the benefits of this chapter upon the employees of such public entity and to be held liable for the costs incurred under these provisions.
A. 
Upon compliance by the employee with the provisions of § 7-6 of this chapter, the public entity 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 a defense shall not arise where such civil action or proceeding is brought by or at the behest of the public entity employing such employee.
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 public entity or other counsel designated by the public entity determines that a conflict of interest exists 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 public entity may require, as a condition to payment of 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 public entity to such private counsel from time to time during the pendency of the civil action or proceeding, with the approval of the governing body of the public entity.
C. 
Any dispute with respect to representation of multiple employees by a single counsel or the amount of litigation expenses or the reasonableness of attorneys' fees shall be resolved by the court upon motion or by way of a special proceeding.
D. 
Where the employee delivers process and a written request for a defense to the public entity under § 7-6 of this chapter, the public entity 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 a defense.
A. 
The public entity shall indemnify and save harmless its employees in the amount of any judgment obtained against such employees in a state or federal court 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 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 governing body of the public entity.
B. 
Except as otherwise provided by law, the duty to indemnify and save 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 a public entity 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; provided, however, that the public entity 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 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 chief administrative officer of the public entity, and if not inconsistent with the provisions of this chapter, the amount of such judgment or settlement shall be paid by the public entity.
The duty to defend or indemnify and save harmless prescribed by this chapter shall be conditioned upon delivery by the employee to the chief legal officer of the public entity or to its chief administrative officer 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 the full cooperation of the employee in the defense of such action or proceeding and in defense of any action or proceeding against the public entity 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 repeal any provision of the Workers' Compensation Law.
This chapter shall not in any way affect the obligation of any claimant to give notice to the public entity under Section 10 of the Court of Claims Act, § 51 of the General Municipal Law or any other provision of law.
Any public entity 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.
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 any public entity by, in accordance with or by reason of any other provision of state or federal statutory or common law.
Except as otherwise provided in this chapter, benefits accorded to employees under this chapter shall be in lieu of and take the place of defense or indemnification protections accorded the same employees by another enactment, unless the governing body of the public entity shall have provided that these benefits shall supplement and be available to defense or indemnification protection conferred by another enactment.
The provisions of this chapter shall also be applicable to any public library supported, in whole or in part, by a public entity whose governing body has determined, by adoption of a local law, ordinance, bylaw, resolution, rule or regulation, to confer the benefits of this chapter upon the employees of such public library and to be held liable for the cost incurred under these provisions.