Town of Dewey Beach, DE
Sussex County
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[HISTORY: Adopted by the Commissioners of the Town of Dewey Beach 5-9-1987 by Ord. No. 94 (Ch. 8, Subchapter 4 of the 1984 Code). Amendments noted where applicable.]
The Town of Dewey Beach shall indemnify, from the general funds of the Town's treasury, to the extent not otherwise covered by appropriate insurance, any person who is a party to, or is threatened to be made a party to, any threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Town of Dewey Beach itself) by reason of the fact that he or she is or was a Town Commissioner, Mayor, or other duly elected or appointed Town official of the Town of Dewey Beach, or arising out of actions taken by each or any of them in connection with the performance of their official duties, against expenses (including attorney's fees), judgments, fines, and amounts paid in settlement, actually and reasonably incurred by him or her in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Town, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Town of Dewey Beach and with respect to any criminal action or proceeding had reasonable cause to believe that his conduct was unlawful.
In the event of a monetary settlement, the Town Commissioners shall first approve the amount and terms of the settlement before the right to indemnification shall vest.
Indemnification as provided in this chapter shall be made by the Town only as authorized in the specific case upon a determination that indemnification of the Town Commissioners, Mayor, and/or Town officials is proper in the circumstances because he or she met the applicable standards of conduct set forth above. Such determination shall be made:
By a majority vote of a quorum of the Town Commissioners consisting of Commissioners who were not parties to such action, suit or proceeding; or
If such a quorum is not obtainable, by independent legal counsel in a written option.