(A) The village shall, except as provided in division (B) of this section, indemnify any current or former elected or appointed village officer, employee, volunteer, trustee, or member of a board, committee or commission of the village ("village representative"), whether or not such village representative is compensated for such service, from liability incurred in the performance of his or her duties by paying any judgment in, or amount negotiated in settlement of, any civil action arising under federal, state or local law. The village's duty to pay the amount of any consent judgment or settlement shall be contingent upon the prior review and approval of the City Solicitor and the City Council. The foregoing indemnification shall include indemnification for the cost of defense of any such action.
(B) The village shall not indemnify a village representative under any of the following circumstances:
(1) To the extent the village representative is covered by a policy of insurance for civil liability purchased by the village;
(2) When the village representative acts manifestly outside the scope of his or her employment or official responsibilities, or with malicious purpose, or in bad faith, or in a wanton or reckless manner, as determined in the reasonable discretion of the City Solicitor and City Council;
(3) For any portion of a judgment that represents punitive or exemplary damages;
(4) For any portion of a consent judgment or settlement which is not reviewed and approved by the City Solicitor and the City Council.
(C) The village may purchase a policy or policies of insurance on behalf of village representatives providing coverage for amounts in excess of $1,000,000 per occurrence incurred in connection with any civil action, demand, or claim against the village representative occurring in the performance of his or her official village duties and not coming within the terms of division (B)(2) of this section.
(D) This section does not affect any of the following:
(1) Any defense that would otherwise be available in an action alleging personal liability of a village representatives;
(2) The operation of R.C. § 9.83.
(E) The indemnification of village representatives against judgments or settlements pursuant to this section shall be accomplished only through the following procedure:
(1) If the village determines that the actions or omissions of its village representative who is to be indemnified were not within the terms of division (B)(2) of this section, an indemnity agreement shall be prepared by the City Solicitor, specifying that the village will indemnify the village representative from a particular judgment that has been rendered or a particular settlement amount that has been negotiated. The agreement shall name the person or entity to whom payment by the village of the judgment or settlement amount will be made, and the agreement shall not be effective until it is approved by the village representative, the City Solicitor and the City Council. The City Solicitor shall approve the indemnity agreement unless he or she finds that division (B) of this section prohibits the village from indemnifying the village representative, or prohibits the village from indemnifying the village person for a portion of a judgment or settlement and the indemnity agreement would indemnify the village representative for all or part of that portion.
(2) If sufficient moneys have not been appropriated, the City Council shall appropriate sufficient funds to pay the indemnification, and no payment shall be made until the appropriation has been made.
(F) A village representative may commence an action against the village in a court of competent jurisdiction to prove that he or she is entitled to indemnification pursuant to division (A) of this section and that division (B) of this section does not prohibit or limit his or her indemnification and seeking either a judgment against the village for a sum of money that the village representative has paid to satisfy a judgment or settlement, or an order directing the village to pay a judgment or settlement against the village representative which has not been satisfied.
(G) An action brought pursuant to this section shall be commenced no later than two years after the cause of action arising under this section accrues. A cause of action arising under this section accrues upon the entry of a money judgment against village representatives if the time for filing an appeal in the action lapses without the filing of an appeal; upon the conclusion of the final appeal in any action in which a money judgment is entered against the village representative if an appeal is filed in the action; or upon execution of any settlement agreement requiring payment of money by the village representative.
(Ord. 13-88, passed 10-24-88; Am. Ord. 05-21, passed 4-19-21; Am. Ord. 14-21, passed 8-23-21)