[HISTORY: Adopted by the City Council of the City of Estell Manor 8-4-2004 by Ord. No. 09-04 (Ch. II, Sec. 2-26, of the 1974 Revised General Ordinances). Amendments noted where applicable.]
Except as hereinafter provided, the City of Estell Manor, hereinafter known as the "municipality," shall, upon the request of any present or former official, employee or appointee of the municipality, provide for indemnification and legal defense of any civil action brought against said person or persons arising from an act or omission falling within the scope of their public duties.
The terms of this chapter and the definition of "official," "employee" and "appointee" are to be construed liberally in order to effectuate the purposes of this chapter except that these terms shall not mean any person who is not a natural person; any person while providing goods or services of any kind under any contract with the municipality except an employment contract; any person while providing legal or engineering services for compensation unless said person is a regular full- or part-time employee of the municipality; and any person who as a condition of his or her appointment or contract is required to indemnify and defend the municipality and/or secure insurance.
The municipality shall provide for defense of and indemnify any present or former official, employee or appointee of the municipality who becomes a defendant in a civil action if the person or persons involved acted or failed to act in a matter in which the municipality has or had an interest; acted or failed to act in the discharge of a duty imposed or authorized by law; and acted or failed to take action in good faith. For purposes of this chapter, the duty and authority of the municipality to defend and indemnify shall extend to a cross-claim or counterclaim against said person.
The municipality shall not indemnify any person against the payment of punitive damages, penalties or fines, but may provide for the legal defense of such claims in accord with the standards set forth herein. The municipality may refuse to provide for the defense and indemnification of any civil action referred to herein if the City of Estell Manor, by its governing body, determines that the act or omission did not occur within the scope of a duty authorized or imposed by law; the act or failure to act was the result of actual fraud, willful misconduct or actual malice of the person requesting defense and indemnification; or the defense of the action or proceeding by the municipality would create a conflict of interest between the municipality and the person or persons involved.
In any other action or proceeding, including criminal proceedings, the municipality may provide for the defense of a present or former official, employee or appointee if the City Council concludes that such representation is in the best interest of the municipality and that the person to be defended acted or failed to act in accord with the standards set forth in this chapter.
Whenever the municipality provides for the defense of any action set forth herein and as a condition of such defense, the municipality may assume exclusive control over the representation of such persons defended, and such person shall cooperate fully with the municipality.
The municipality may provide for the defense pursuant to this chapter by authorizing its Attorney to act in behalf of the person being defended or by employing other counsel for this purpose or by asserting the right of the municipality under any appropriate insurance policy that requires the insurer to provide defense.