(A) Defense of actions against employees.
(1) Except as otherwise provided in this division, the village shall provide for the defense of an employee, in any state or federal court, in any civil action or proceeding which contains an allegation for damages for injury, death, or loss to person or property caused by an act or omission of the employee in connection with a governmental or proprietary function. The village has the duty to defend the employee if the act or omission occurred while the employee was acting in good faith and not manifestly outside the scope of his employment or official responsibilities. Amounts expended by the village in the defense of its employees shall be from funds appropriated for this purpose or from proceeds of insurance. The duty to provide for the defense of an employee specified in this division does not apply in a civil action or proceeding that is commenced by or on behalf of the village.
(2) Except as otherwise provided in this division, the village shall indemnify and hold harmless an employee in the amount of any judgment, other than a judgment for punitive or exemplary damages, that is obtained against the employee in a state or federal court or as a result of a law of a foreign jurisdiction and that is for damages for injury, death, or loss to person or property caused by an act or omission in connection with a governmental or proprietary function, if at the time of the act or omission the employee was acting in good faith and within the scope of his employment or official responsibilities.
(B) Consent judgments.
(1) The village may enter into a consent judgment or settlement and may secure releases from liability for itself or an employee, with respect to any claim for injury, death, or loss to person or property caused by an act or omission in connection with a governmental or proprietary function.
(2) No action or appeal of any kind shall be brought by any person, including any employee or a taxpayer, with respect to the decision of the village pursuant to division (B)(1) of this section whether to enter into a consent judgment or settlement or to secure releases, or concerning the amount and circumstances of a consent judgment or settlement. Amounts expended for any settlement shall be from funds appropriated for this purpose.
(C) Failure to provide defense. If the village refuses to provide an employee with a defense in a civil action or proceeding as described in division (A)(1) of this section, upon the motion of the village, the court shall conduct a hearing regarding the village’s duty to defend the employee in that civil action. The village shall file the motion within 30 days of the close of discovery in the action. After the motion is filed, the employee shall have not less than 30 days to respond to the motion. At the request of the village or the employee, the court shall order the motion to be heard at an oral hearing. At the hearing on the motion, the court shall consider all evidence and arguments submitted by the parties. In determining whether a village has a duty to defend the employee in the action, the court shall determine whether the employee was acting both in good faith and not manifestly outside the scope of employment or official responsibilities. The pleadings shall not be determinative of whether the employee acted in good faith or was manifestly outside the scope of employment or official responsibilities. If the court determines that the employee was acting both in good faith and not manifestly outside the scope of employment or official responsibilities, the court shall order the village to defend the employee in the action.
(R.C. § 2744.07)