[HISTORY: Adopted by the Board of Trustees of the Village
of Sleepy Hollow 4-21-1980 by L.L. No. 2-1980 (Ch. 31 of the 1965
Code). Amendments noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 34.
The purpose of this chapter is to provide legal and financial
protection for those individuals serving the Village of Sleepy Hollow
from losses which may be brought against them in their individual
capacity for actions taken while in the performance of their official
duties and responsibilities. In enacting this chapter, the Board of
Trustees finds that the State of New York has enacted similar provisions
for the legal and financial security of its officers and employees
and further finds that such security is also required for local personnel.
By enactment of this chapter, the Board of Trustees does not intend
to limit or otherwise abrogate any existing right or responsibility
of the Village or its employees with regard to indemnification or
legal defense. It is solely the intent of this chapter to provide
similar coverage for local employees as is presently provided for
state employees, so as to continue to attract qualified individuals
to local government service.
As used in this chapter, unless the context otherwise requires,
the following terms shall have the meanings indicated:
Any person holding a position by election, appointment or
employment in the service of the Village of Sleepy Hollow, whether
or not compensated or a volunteer program, but shall not include an
independent contractor. The term "employee" shall include a former
employee, his estate or judicially appointed personal representative.
A.
Upon compliance by the employee with the provisions of § 23-5 of this chapter, the Village shall provide for the defense of the employee in any civil action or proceeding in any state or federal court, or any administrative action or proceeding, arising out of any alleged act or omission which occurred or is alleged in the complaint to have occurred while the employee was acting in good faith within the apparent scope of his or her 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. This duty to provide for a defense shall not arise where such civil or administrative action or proceeding is brought by or on behalf of the Village of Sleepy Hollow.
[Amended 4-17-2001 by L.L. No. 4-2001]
B.
Subject to the conditions set forth in Subsection A of this section, 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 of his choice. The Village Attorney may require, as a condition to payment of the fees and expenses of such representation, 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 this section, the Village Attorney shall so certify to the Village Board. 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 this section 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.
C.
Notwithstanding Subsection B above, if the claim or cause of action alleged against the employee is within the coverage of any liability insurance policy issued to the Village, the employee shall accept representation by counsel selected in accordance with the terms of such policy.
[Added 4-17-2001 by L.L. No. 4-2001]
D.
Where the employee delivers process and a request for a defense to the Village Attorney as required by § 23-5 of this chapter, the Attorney shall take the necessary steps, including the retention of private counsel under the terms and conditions provided in Subsection B of this section, 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.
A.
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, provided
that the act or omission from which such judgment or settlement arose
occurred while the employee was acting in good faith within the apparent
scope of his or her public employment or duties. The duty to indemnify
and save harmless prescribed by this subsection shall not arise where
the injury or damage resulted from intentional wrongdoing or recklessness
on the part of the employee.
[Amended 4-17-2001 by L.L. No. 4-2001]
B.
An employee represented by private counsel shall cause to be submitted
to the Board of Trustees any proposed settlement which may be subject
to indemnification by the Village, and if not inconsistent with the
provisions of this section, the Mayor shall certify such settlement,
and submit such settlement and certification to the Village Attorney.
The 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 subsection
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.
C.
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 Mayor;
and if not inconsistent with the provisions of this section, such
judgment or settlement shall be certified for payment by such Mayor.
If the Attorney concurs in such certification, the judgment or settlement
shall be paid upon the audit and warrant of the Village Treasurer.
D.
The Village shall also indemnify and save harmless its employees
in the amount of any punitive damages in accordance with the following
procedure and such additional procedures as may be established by
the Village Attorney:
[Added 4-17-2001 by L.L. No. 4-2001]
(1)
In the event of a final judgment of punitive damages against the
employee, the employee shall serve copies of such judgment, personally
or by certified or registered mail within 10 days of the date of entry,
upon the Village Attorney and upon the Mayor on behalf of the Village
Board. The Village Board shall meet as soon as practicable to review,
make findings and determine if all the following conditions have been
met and, if so, shall appropriate the funds necessary to pay such
punitive damages:
(a)
The judgment of punitive damages is based on an act or omission
of an employee acting within the scope of his or her employment;
(b)
At the time of the action or omission giving rise to the liability,
the employee acted without recklessness, without maliciousness and
without gross negligence and otherwise within the standards required
for employees holding comparable positions within the Village;
(c)
At the time of the act or omission, the employee acted in good
faith and in the best interests of the Village; and
(d)
At the time of the act or omission, the employee did not willfully
violate a clearly established provision of law or Village policy.
(2)
Except as otherwise required by federal or state law, deliberations
by the Village Board shall be held in executive session, and the findings
and determination of the Village Board shall remain confidential.
[Amended 4-17-2001 by L.L. No. 4-2001; 1-22-2013 by L.L. No. 1-2013]
The duty to defend or indemnify and save harmless provided by
this chapter shall be conditioned upon delivery to the Village Attorney
at his office by the employee of a written request to provide for
his defense, together with the original or a copy of any summons,
complaint process, notice, demand or pleading within 10 days after
he is served with such document and upon 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.
[Amended 4-17-2001 by L.L. No. 4-2001]
Benefits accorded to employees under this chapter shall be in
lieu of and take the place of defense or indemnification protections
accorded the same employees by another enactment, including Public
Officers Law § 18.
The provisions of this chapter shall not be construed to impair,
alter, limit or modify the rights and obligations of any insurer under
any policy of insurance.
The provisions of this chapter shall apply to all actions and
proceedings pending upon the effective date thereof or thereafter
instituted.
Except as otherwise specifically provided in this chapter, the
provisions of this chapter 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.
