As used in this chapter, 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 Village of Garden City, 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.
At the request of an employee and upon compliance by the employee with
all of the provisions of this chapter, the Village shall provide for the defense
of an employee in any civil action or proceeding in any state or federal court,
including actions under Sections 1981 through 1988 of Title 42 of the United
States Code, arising out of any alleged act or omission which the Village
Board of Trustees finds occurred while the employee was acting within the
scope of his public service and in the discharge of his duties and was not
in violation of any rule or regulation of the Village at the time the alleged
act or omission occurred.
At the request of an employee and upon compliance by the employee with
all of the provisions of this chapter, the Village shall indemnify and save
harmless its employees in the amount of any judgment obtained against such
employees in any state or federal court or in the amount of any settlement
of a claim approved by the Village Board of Trustees, provided that the Village
Board of Trustees finds that the act or omission from which such judgment
or settlement arose occurred while the employee was acting within the scope
of his public service and in the discharge of his duties and was not in violation
of any rule or regulation of the Village at the time the alleged act or omission
occurred and the damages were sustained.
[Amended 10-7-2004 by L.L. No. 3-2004]
The duty to indemnify and save harmless prescribed by this chapter shall
not arise where the alleged act or omission, injury or damage resulted from
intentional wrongdoing or recklessness on the part of the employee or where
the civil action or proceeding is brought by or on behalf of the Village or
any other federal, state or municipal entity.
[Amended 10-7-2004 by L.L. No. 3-2004]
A. The duty to defend or indemnify and save harmless prescribed
by this chapter shall be conditioned upon:
(1) The delivery by the employee to the Village Clerk, at
his office, of the original or a copy of any summons, complaint, notice, petition,
process, demand or pleadings within 10 days after the employee is served with
such document; and
(2) The full cooperating of the employee in the defense of
such action or proceeding and in defense of any action or proceeding against
the Village based upon the same act or omission and in the prosecution of
any appeal.
(3) The full cooperation of the employee in making settlements.
B. Such delivery shall be deemed a request by the employee
that the Village provide for his defense pursuant to this chapter.
C. In the event that the Village shall assume an employee's
defense and thereafter the employee fails to or refuses to cooperate in the
formation or presentation of his defense, the court shall permit the Village
to withdraw its representation 10 days after giving written notice to the
employee of its intention to discontinue such representation.
D. The employee shall not admit liability or settle any
action or proceeding or incur any cost or expense without the written consent
of the Village. The Village shall have the right to make such investigation
and negotiations and settle any action or proceeding as the Village deems
expedient. If the employee refuses to consent to any settlement recommended
by the Village, the employee shall thereafter negotiate or defend such action
or proceeding independently of the Village, and the liability of the Village
shall not exceed the amount for which the action could have been settled plus
defense costs incurred with the Village's consent up to the date of such
refusal.
In the event that the act or omission upon which the court action or
proceeding against the employee is based was or is also the basis of a disciplinary
proceeding by the Village against the employee, representation by the Village
and indemnification by the Village may be withheld:
A. Until such disciplinary proceeding has been resolved;
and
B. Unless the resolution of the disciplinary proceeding
completely exonerated the employee as to such act or omission.
Every action or proceeding instituted hereunder, including an action
brought to enforce a provision of Sections 1981 through 1988 of Title 42 of
the United States Code, shall be commenced pursuant to the provisions of § 51-i
of the General Municipal Law and within one year and 90 days. No action or
proceeding instituted hereunder, other than one instituted pursuant to Sections
1981 through 1988 of Title 42 of the United States Code, shall be prosecuted
or maintained against the Village or an employee unless notice of claim shall
have been made and served upon the Village in compliance with § 50-e
of the General Municipal Law and within 90 days after the claim arises.
Subject to the conditions set forth in this chapter, the employee shall
be entitled to be represented by an attorney to be retained by the Village
Board of Trustees. The Village shall have no liability to represent, defend
or hold harmless an employee who is represented by an attorney other than
one retained by the Village Board of Trustees.
[Amended 10-7-2004 by L.L. No. 3-2004]
Nothing in this chapter shall authorize the Village 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 Section 51 of
the General Municipal Law; provided, however, that the Village shall indemnify
and save harmless an employee in the amount of any costs, attorneys'
fees, damages, fines or penalties which may be imposed by reason of an adjudication
that the 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.
The Board of Trustees may, by resolution, undertake to purchase liability
insurance for its employees to insure against acts or omissions covered by
this chapter.
The provisions of this chapter shall apply to all actions and proceedings
pending upon the effective date thereof or thereafter instituted.