The Town Board of the Town of Cortlandt has
determined that in order to ensure the continued and future service
of responsible and capable individuals as officials, employees and
appointees of the Town of Cortlandt, it is necessary and proper to
assure that they are afforded protection against individual liability
for actions taken in good health within the scope of their duties
and employment.
The title of this chapter shall be "Defense
and Indemnification of Public Officials and Employees."
As used in this chapter, the following terms
shall have the meanings indicated:
EMPLOYEE
Unless the context otherwise requires, any person holding
a position by election, appointment or employment in the service of
the Town of Cortlandt, 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.
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.
TOWN
The Town of Cortlandt.
Subject to the conditions set forth in §
21-4 of this chapter, the employee shall be entitled to be represented by the Town Attorney or such attorney as provided by the Town's insurance carrier if insurance coverage exists for the allegations complained of; provided, however, that the employee shall be entitled to representation by private counsel of his choice in any civil judicial proceeding whenever the Town Board determines, based upon its investigation and review of the facts and circumstances of the case and upon the recommendations of the Town Attorney, that representation by the Town Attorney would be inappropriate, or whenever the court of competent jurisdiction, upon appropriate motion or by a special proceeding, determines that a conflict of interest exists and that the employee is entitled to be represented by private counsel of his choice. The Town Attorney shall notify the employee, in writing, of such determination that the employee is entitled to be represented by private counsel.
The Town Attorney may require, as a condition to payment of the fees and expenses of such representation by private counsel, that appropriate groups of such employees be represented by the same counsel. If the employee or group of employees is entitled to representation by private counsel under the provisions of §
21-5 of this chapter, the Town Attorney shall so certify to the financial officer of the Town of Cortlandt. Reasonable attorneys' fees and litigation expenses shall be paid by the Town to such private counsel from time to time during the pendency of the civil action or proceeding, subject to certification that the employee is entitled to representation under the terms and conditions of §
21-5 of this chapter by the head of the department, commission, division, office or agency in which such employee is employed and upon the audit and warrant of the Town Board. 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.
Where the employee delivers process and a request for a defense as required by §
21-4 of this chapter, the Town Attorney shall take the necessary steps, including the retention of private counsel, under the terms and conditions therein provided, 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.
Nothing in this chapter shall 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 Article 7-A of the State Finance Law.
The provisions of this chapter shall apply to
all actions and proceedings pending upon the effective date thereof
or thereafter instituted.