(A) It shall be the policy of the town to pay defense costs, expenses, judgments, interest on judgments, deductibles on insurance policies and other related costs on behalf of its officers and employees against civil claims and judgments; and to satisfy the same either through the purchase of insurance or otherwise, provided adoption of this section shall not deemed an assumption of liability for payment of claims or judgments in excess of any fund established by the Board for payment of claims or judgments in addition to any insurance coverage or any combination of such a fund and insurance coverage. Further, the town will not defend a claim or lawsuit or pay a claim or judgement 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 this self-indulgence substantially impaired his or her judgement (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 such manner as to constitute a criminal act (as, for example, misappropriation of property or funds).
(B) 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 such 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 said determination to the Town Board. The Town 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.
(C) The terms OFFICER and EMPLOYEE as used herein shall mean 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 commissioners who might hereafter have claims or judgments entered against them.
(D) The policies specified herein shall not be applicable unless notice of the claim or suit is given to the Town Board through the Town Manager or Town Attorney prior to the time the claim is settled or civil suit is litigated and judgement is entered.
(E) This section shall not be interpreted in any way to relieve any insurance company of its obligation under any insurance policy to protect the interest of any insured under said 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.
(F) This section is effective December 13, 1988 and shall constitute uniform standards under which claims made or civil judgments entered against officers or employees of the town shall be paid. A copy of this section shall be maintained in the office of the Town Clerk for public inspection during all normal business hours.
(1991 Code, § 34.05) (Res., passed 12-13-1988)