§ 20-11. Supplemental defense and indemnification for punitive damages.

A. 

Legislative intent. The intent of this article is to indemnify the officers and employees of the Village of Cornwall-on-Hudson for punitive damages. Punitive damages are not intended to compensate the injured party, but to punish the accused for his conduct to deter him and other like him from similar actions in the future. As such, the courts have found that it is against public policy to assess punitive damages against the state or its political subdivisions. It is the intent of this governing body that the protection afforded by this article will allow highly qualified individuals to serve in government free from fear of unwarranted personal exposure and will allow those in government service to carry out their day-to-day activities with the same freedom.

B. 

Supplemental defense. Upon compliance by the employee with the provision of Subsection C of this section, the Village shall provide for the defense of the employee in a civil administrative action or proceeding, state or federal, arising out of any alleged act or omission which occurred or allegedly occurred while the employee was acting within the scope of his/her public employment or duties. This duty to provide for a defense shall not arise where such civil administrative action or proceeding is brought by or at the behest of the Village.

C. 

Supplemental indemnification.

(1) 

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. In the event of a final judgment of punitive damages against the employee or the Village, the employee shall serve copies of such judgment, personally or by Federal Express next day business within 10 days of the date of service of notice of the entry of judgment, upon the Attorney for the Village and upon the Village Clerk on behalf of the Village Board of Trustees. The Village Attorney shall make findings and an initial determination whether the employee should or should not be indemnified against any punitive damages, based upon the facts and circumstances then known to the municipal attorney as follows:

(a) 

Whether the employee's actions were or were not within the scope of his/her employment.

(b) 

Whether the employee's actions were or were not reckless, malicious, grossly negligent or otherwise outside of the standards required for employees holding comparable positions with the municipality.

(c) 

Whether the employee's actions were or were not made in good faith and in the best interests of the municipality.

(d) 

Whether the employee did or did not willfully violate a clearly established provision of law or municipal policy.

(2) 

In the event the Village Attorney is a named defendant in an action or proceeding or cannot serve for any other reason, the Deputy Village Attorney shall serve instead of the Village Attorney on the matter under review. In the event neither the Village Attorney nor the Deputy Village Attorney can serve, the Mayor shall appoint another municipal commissioner to serve instead of the Village Attorney on the matter under review.

(3) 

The Board of Trustees shall meet as soon as practicable in executive session to review, make findings taking into consideration and giving weight to the initial and any additional findings made by the Village Attorney (provided the employee did not formerly misrepresent or omit material facts evidenced at trial), and determine if the following have been met and, if so met, 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/her employment;

(b) 

At the time of the action or omission giving rise to the liability, the employee acted:

[1] 

Without recklessness;

[2] 

Without maliciousness; and

[3] 

Without gross negligence and otherwise within the standards required for employees holding comparable positions with the Village.

(c) 

At the time of the act or omissions, 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 wilfully violate a clearly established provision of law or Village policy.

(4) 

Deliberations, findings and determinations of the Village Attorney and Board of Trustees shall remain confidential.

D. 

The duty to defend or indemnify and save harmless prescribed by this article shall be conditioned upon:

(1) 

Delivery by the employee to the Village Attorney of a written request to provide for his/her defense together with the original or a copy of any summons, complaint, process, notice, demand or pleading within 10 days after he/she is served with such document.

(2) 

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.

E. 

This article shall not in any way affect the obligation of any claimant to give notice to the Village under General Municipal Law § 50-e, or any other provision of law.

F. 

The Mayor is hereby authorized and empowered to purchase insurance from any insurance company created by or under the laws of this state, or authorized by law to transact business in this state, against any liability imposed by the provision of this article, or to act as a self-insurer with respect thereto.

G. 

All payments made under the terms of this article, whether for insurance or otherwise, shall be deemed to be for a public purpose and shall be audited and paid in the same manner as other public charges.

H. 

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.

I. 

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 to liability available to or conferred upon any unit, entity, officer or employee of the municipality by, in accordance with, or by reason of, any other provision of state or federal statutory or common law.

J. 

Benefits accorded to employees under this article shall be in supplement to defense or indemnification protection accorded the same employees by other provisions of this chapter.