(A) For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
OFFICER and EMPLOYEE. Present or past Mayors and members of the Board, officers, employees, or volunteers, and present or past appointed members of town boards, agencies, committees, and commissions who might hereafter have claims or judgments entered against them.
(B) It shall be the policy of the town to pay defense cost, expenses, judgments, interest on judgments, deductible on insurance policies, and other related costs on behalf of its officers and employees against civil claims and judgments, and to satisfy same either through the purchase of insurance or otherwise, provided adoption of this section shall not be deemed an assumption of liability for payment of claims or judgments in addition to any insurance coverage or any combination of a fund and insurance coverage.
(C) The town will not defend a claim or lawsuit or pay a claim or judgment when the officer or employee willfully:
(1) Acts or fails to act because of actual fraud, corruption, or actual malice;
(2) Acts or fails to act as a result of, or at a time when, his or her self-indulgence substantially impaired his or her judgment (as, for example, an officer or employee who causes damage or injury while intoxicated or under the influence of drugs while on the job);
(3) Acts or fails to act, except in emergencies or the existence of extenuating circumstances, directly contrary to instructions from his or her superior, or directly contrary to advice of the Town Attorney; or
(4) Acts or fails to act in a manner so as to constitute a criminal act (as, for example, misappropriation of property or funds).
(D) The Town Manager, or his or her designee, shall determine whether or not a claim or suit filed against an officer or employee meets the requirements specified herein for providing a defense for the officer or employee. If the Town Manager, or his or her designee, determines that a claim or suit does not meet the requirements specified herein, the affected officer or employee may appeal the determination to the Board. The Board shall afford the officer or employee a hearing on the matter, and shall decide whether or not the claim or suit meets the requirements of this section.
(E) The policies specified herein shall not be applicable unless notice of the claim or suit is given to the Board through the Town Manager or Town Attorney prior to the time the claim is settled or civil suit is litigated and judgment is entered.
(F) This section shall not be interpreted in any way to relieve any insurance company of its obligation under any insurance policy to protect the interests of any insured under the policy, or to reduce or eliminate the rights of any officer or employee of the town against any other party. Further, except as expressly stated herein, this section is not to be interpreted as a waiver of any rights the town has against any party, nor shall the adoption of this section be construed to waive the defense of governmental immunity.
(G) This section shall constitute uniform standards under which claims made or civil judgments entered against officers or employees of the town shall be maintained in the office of the Town Clerk for public inspection during all normal business hours.
(Prior Code, § 22.50)