[HISTORY: Adopted by the Board of Trustees of the Village of Freeport as indicated in article histories. Amendments noted where applicable.]
Article I Claims Against Fire Insurance Proceeds
Article II Defense and Indemnification of Village Officers and Employees
[Adopted 5-14-1979 by L.L. No. 4-1979]
As used in this article, any inconsistent provision of law notwithstanding, the following terms shall have the following meanings:
- Any lien, including liens for taxes, special ad valorem levies, special assessments and municipal charges arising by operation of law against property in favor of Village and remaining undischarged.
- REAL PROPERTY
- Property upon which there is erected any residential, commercial or industrial building or structure.
- SPECIAL LIEN
- A lien upon fire insurance proceeds pursuant to this article and Chapter 738 of the Laws of 1977.
- The Village Treasurer.
The Treasurer shall file a notice of intention to claim against the proceeds of fire insurance policies pursuant to § 22 of the General Municipal Law with the State Superintendent of Insurance for entry in the index of liens maintained by him as provided in § 33 of the Insurance Law.
Prior to the payment of any proceeds of a policy of insurance for damages caused by fire to real property, which policy insures the interest of an owner and is issued on real property located within the Village, and following notification to the Treasurer by an insurer of the filing of a claim for payment of such proceeds, the Treasurer shall claim, by serving a certificate of lien, against such proceeds to the extent of any lien (including interest and penalties to the date of this claim) thereon, which claim when made and perfected in the manner provided for in § 22 of the General Municipal Law and § 33-a of the Insurance Law shall constitute a special lien against such proceeds and shall, as to such proceeds, be prior to all other liens and claims except the claim of a mortgagee of record named in such policy. Notice of the service of the certificate of the special lien shall be given to the insured by certified mail.
The provisions of this article shall not be deemed or construed to alter or impair the right of the Village to acquire or enforce any lien against property but shall be in addition to any other power provided by law to acquire or enforce such right.
[Adopted 6-2-1980 by L.L. No. 7-1980]
As used in this article, the following terms shall have the meanings indicated:
- Unless the context otherwise requires, any person holding a position by election, appointment or employment in the service of the Village of Freeport, 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 article shall inure only to employees as defined herein and shall not enlarge or diminish the rights of any other party.
The Village shall provide for the defense of the employee in any civil action or proceeding in any state or federal court arising out of any alleged act or omission which occurred or is alleged in the complaint to have occurred while the employee was acting within the scope of his public employment or duties or which is brought to enforce a provision of Section 1981 or 1983 of Title 42 of the United States Code; provided, however, that the duty of the Village to defend or save harmless shall be conditioned upon:
The delivery to the Village Attorney at his office by the employee of the original or a copy of any summons, complaint, process, notice, demand or pleading within 10 days after he is served with such document. Such delivery shall be deemed a request by the employee that the Village provide for his defense pursuant to this article.
The full cooperation 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.
This duty to provide for a defense shall not arise where such civil action or proceeding is brought by or on behalf of the Village of Freeport.
Subject to the conditions set forth in § 130-6 of this article, the employee shall be entitled to be represented by the Village Attorney; provided, however, that the employee shall be entitled to representation by private counsel of his choice in any civil judicial proceeding whenever the Village Attorney determines, based upon his investigation and review of the facts and circumstances of the case, that representation by the Village Attorney would be inappropriate or whenever a 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 Village Attorney shall notify the employee, in writing, of such determination that the employee is entitled to be represented by private counsel.
The Village 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 § 130-7 of this article, the Village Attorney shall so certify to the Village Treasurer. Reasonable attorneys' fees and litigation expenses shall be paid by the Village 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 § 130-7 of this article 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 Village Treasurer. 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 to the Village Attorney, as required by § 130-6 of this article, the Village 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.
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 for compensatory and/or punitive damages, in the amount of any settlement of a claim, provided that the act or omission from which such judgment or settlement arose occurred while the employee was acting within the scope of his public employment or duties.
[Amended 5-11-1981 by L.L. No. 10-1981]
An employee represented by private counsel shall cause to be submitted to the head of the department, commission, division, office or agency in which he is employed any proposed settlement which may be subject to indemnification by the Village, and, if not inconsistent with the provisions of this section, such head of the department, commission, division, office or agency in which he is employed shall certify such settlement and submit such settlement and certification to the Village Attorney. The Village Attorney shall review such proposed settlement as to form and amount and shall give his approval if, in his judgment, the settlement is in the best interest of the Village. Nothing in this section shall be construed to authorize the Village to indemnify or save harmless an employee with respect to a settlement not so reviewed and approved by the Village Attorney.
Upon entry of a final judgment against the employee or upon the settlement of the claim, the employee shall cause to be served 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 head of the department, commission, division, office or agency in which he is employed, and, if not inconsistent with the provisions of this section, such judgment or settlement shall be certified for payment by such head of the department, commission, division, office or agency. If the Mayor and the Board of Trustees concurs in such certification, the judgment or settlement shall be paid upon the audit and warrant of the Village Treasurer.
[Amended 7-14-1997 by L.L. No. 16-1997]
Except as provided in Subsection B of this section, nothing in this article 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 article 7-A of the State Finance Law.
The Incorporated Village of Freeport shall provide for the defense of any civil action or proceeding brought against a duly appointed police officer of the Incorporated Village of Freeport and shall indemnify and save harmless such police officer from any judgment of a court of competent jurisdiction whenever such action, proceeding or judgment is for damages, including punitive or exemplary damages, arising out of a negligent act or other tort of such police officer committed while in the proper discharge of his duties and within the scope of his employment.
The determination of whether any such police officer properly discharged his duties within the scope of this employment shall be made by a majority vote of a three-member panel. The panel shall consist of the Mayor, the Deputy Mayor and the Chief of Police or a Police Inspector.
The provisions of this article shall not be construed to affect, alter or repeal any provision of the Workers' Compensation Law.
This article shall not in any way affect the obligation of any claimant to give notice to the Village under any provision of law.
The provisions of this article 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 article, the provisions of this article shall not be construed in any way to impair, alter, limit, modify, abrogate or restrict any immunity available to or conferred upon any unit, entity, officer or employee of the Village or any right to defense and/or indemnification provided for any governmental officer or employee by, in accordance with or by reason of any other provision of state or federal statutory or common law.
The Board of Trustees may, by resolution, undertake to purchase liability insurance for its officers and employees for acts within the purview of this article.
[Added 2-8-1982 by L.L. No. 2-1982]
Pursuant to the provisions of § 18 of the Public Officers Law, the Incorporated Village of Freeport hereby agrees to be held liable for costs incurred under the provisions of said section, by conferring upon the officers and employees of the Incorporated Village of Freeport the benefits of § 18 of the Public Officers Law. Such benefits shall supplement and shall be available in addition to the defense or indemnification protection conferred by Chapter 130, Article II, §§ 130-5 through 130-14 of the Code of Ordinances of the Incorporated Village of Freeport.