[HISTORY: Adopted by the Town Commission of the Town of Zolfo Springs as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-22-2007 by Ord. No. 2006-20]
Recent case law in Florida has interpreted Florida statute on sovereign immunity to allow Florida cities to indemnify third parties in contracts. The effect of this case, however, may be to also interpret such provisions as a waiver of sovereign immunity limitations on municipal liability, potentially leaving Florida cities open to enormous damage awards under such indemnification provisions. The Town Commission finds that any benefit in giving such indemnification is far outweighed by the potentially crippling liability for damages due to such provisions. Further exacerbating the situation, the Town's insurer will not cover liability to the Town derived through indemnification clauses. Therefore, the Commission does, by this article, prohibit the acceptance of any indemnification provisions in any form except as provided by this article.
No contract entered into on behalf of the Town shall contain any provision by which the Town agrees to indemnify, or to obtain insurance for the benefit of, any other party to the contract. If the Town Commission determines that, under emergency circumstances, an indemnity provision must be accepted, such provision must specifically recognize this article and state the emergency conditions making it necessary to indemnify, and shall seek to limit indemnification to the limits of sovereign immunity.