(A) For the purposes of this section, ELECTED OR APPOINTED VILLAGE OFFICIAL shall mean any present or former officer, member of a board, commission or committee, whether or not compensated.
(B) If any claim is instituted against any village employee or elected or appointed village official based on an injury allegedly arising out of an act or omission occurring within the scope of the duties of a village official or employment of a village employee, the village shall, with or without a reservation of its rights:
(1) Appear and defend against the claim or action, through an attorney appointed by the village or its insurance provider or in the absence, conflict of interest or other disqualification of such attorney, by an attorney appointed by the village employee or elected or appointed village official and approved by the village;
(2) Indemnify the village employee or elected or appointed village official for his or her court costs and attorney’s fees incurred in the defense of such claim or action;
(3) Pay or indemnify the village employee or elected or appointed village official, for a judgment based on such claim or action, excluding any portion of the judgment representing an award of punitive or exemplary damages; and
(4) Pay or indemnify the village employee or elected or appointed village official for a compromise or settlement of such a claim of action, provided that the settlement is approved by a majority of the members of the Board of Trustees.
(C) The foregoing obligation to defend and/or indemnify shall not extend to any of the following:
(1) Any matter in which the village employee or elected or appointed village official is finally adjudged to be guilty of a criminal act. Whenever any criminal proceeding is instituted against any village employee or elected or appointed village official, the village’s obligation to defend and/or indemnify the village employee or elected or appointed village official shall be suspended pending the final outcome of the proceeding. Any defense costs or indemnity that may have been paid to or on behalf of any village employee or elected or appointed village official for any claim arising from any act or omission that is determined to be a criminal act shall be reimbursed to the village upon a final adjudication of guilt.
(2) Any action instituted by the village, including but not limited to administrative investigatory or disciplinary proceedings, against any village employee or elected or appointed village official;
(3) Any liability or judgment against a village employee or elected or appointed village official which is payable to the village itself or where the village official or employee either obtained personal benefit or financial gain as a result of his or her wrongful conduct;
(4) Any liability, attorney’s fees or costs incurred as a result of an investigation into the misconduct of the village employee or elected or appointed village official instituted or approved by the village;
(5) Any liability, attorney’s fees or costs incurred as a result of the village employee’s or appointed village official’s failure to reasonably cooperate or participate in the defense of any claim, action, suit or proceeding with any person, party or entity; or
(6) Any liability excluded by a written waiver from the village employee or elected or appointed village official.
(D) The village may, but is not obligated to, fulfill all or a portion of its obligation to defend and/or indemnify a village employee or an elected or appointed village official through the purchase of insurance or participation in any program of self insurance or of an intergovernmental insurance pooling agreement.
(Ord. 9-13, passed 4-22-09)