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Except as provided in § 32.56, if the proceeding is one not initiated by the town:
(A) The person shall be indemnified against his or her expenses, including attorney's fees, costs, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with the proceeding.
(B) The town, either directly or through its insurance carrier, shall defend the person in connection with the proceeding.
Except as provided in § 32.56 , if the proceeding is a criminal proceeding, the person shall be indemnified and defended if he or she had no reasonable cause to believe his or her conduct was unlawful.
With respect to the indemnification and defense obligations under §§ 32.58 or 32.59, a termination of the proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not by itself create a presumption that the person acted, or failed to act, other that in good faith and in a manner which he reasonably believed to be in or not opposed to the best interest of the town, and with respect to any criminal proceeding, shall not by itself create a presumption that the person had reasonable cause to believe that his or her conduct was unlawful.
The indemnification and defense obligations set forth in this section shall not apply to proceedings initiated by the town to procure a judgment against any person in the town's favor unless a determination is made pursuant to § 32.63 that the requirements of this section have been met. Notwithstanding anything else set forth in this section, if a court enters a judgment that the person's actions exceeded his or her authority, such person shall reimburse the town for all costs incurred by it in providing the indemnification and/or defense of the proceeding.
To the extent that a person covered by this subchapter has been successful on the merits or otherwise in defense of any proceeding covered by this subchapter or in the defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees and costs, actually and reasonably incurred by him or her in connection therewith.
Any indemnification made pursuant to this section and any defense authorized by this section shall be provided by the town only as authorized in the specific case upon a determination that indemnification or defense of the person is proper in the circumstances because he or her has met the requirements set forth in this section. Indemnification and defense shall be made unless the Town Attorney or independent legal counsel engaged by the town determines that the requirements of this section have not been met.
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