A. Reimbursement: If any claim or action is instituted against an employee of the City based on an injury allegedly arising out of an act or omission occurring within the scope of his or her employment as such employee, the City shall do one or more of the following:
1. Appear and defend against the claim or action; and/or
2. Reimburse the employee for his or her court costs or reasonable attorney’s fees, or both, incurred in the defense of such claim or action; a judgment based on such claim or action; and/or a compromise or settlement of such a claim or action.
B. Exceptions:
1. The City shall not defend or reimburse an employee for any claim or action instituted against the employee pursuant to this section if any of the exceptions set forth below apply.
a. The City shall not defend or reimburse an employee for any portion of a judgment representing an award of punitive or exemplary damages.
b. The City shall not defend or reimburse an employee if the injury arose out of an act or omission occurring outside the scope of his or her employment or if the act or omission was willful and wanton conduct by such employee. The City shall not defend if it is unclear to the City if the injury arose out of an act or omission occurring outside the scope of his or her employment or if the act or omission was willful and wanton conduct by such employee. This determination shall be made by the City in its sole discretion and shall be a final determination.
c. The City may elect not to defend or reimburse an employee if it is determined that there exists a current insurance policy or a contract, by virtue of which the employee is entitled to an indemnity and/or defense of the action in question.
2. Nothing herein relieves the City of its duty to indemnify or insure its employees as set forth in the Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10, as amended. Further, nothing herein relieves the City of its duty to indemnify or insure its employees as provided in sections 1-4-5 and 1-4-6 of the Illinois Municipal Code.
C. Procedures:
1. If any claim or action is instituted against an employee of the City pursuant to subsection A of this section, the employee shall, as soon as practicable, notify the City of receipt of notice of such a claim or action. The City shall, as soon as practicable, following receipt of notice of such a claim or action to determine whether the City shall defend and shall notify the employee in writing of its determination. Any prejudice caused by the employee’s failure to timely give notice to the City may be considered as a factor in the City’s determination of defense hereunder. The City shall not be responsible for any adverse actions taken against the employee prior to the City’s determination of whether to defend.
2. Should the City decide not to defend, upon the potential for compromise or settlement of the claim or action (but prior to the compromise or settlement) or upon the completion of the claim or action, the employee shall notify the City of his or her court costs or reasonable attorney’s fees, or both, incurred in the defense of such claim or action; any judgment based on such claim or action; and/or the potential compromise or settlement or the actual compromise or settlement of the claim or action. The City shall have fourteen (14) days from receipt of such notice or until the next regularly scheduled City Council meeting following receipt of such notice upon which a matter may be placed on the agenda, whichever is later, to determine whether the City shall reimburse the employee for his or her court costs or reasonable attorney’s fees, or both, incurred in the defense of such claim or action; any judgment based on such claim or action; and/or the potential compromise or settlement or the actual compromise or settlement of the claim or action and shall notify the employee in writing of its determination. The City may elect not to reimburse an employee for a compromise or settlement of a claim or action for which the City did not approve prior to such compromise or settlement. Any prejudice caused by the employee’s failure to timely give notice to the City may be considered as a factor in the City’s determination. The City shall not be responsible for any adverse actions taken against the employee prior to the City’s determination of whether to reimburse.
3. This chapter shall apply to all claims or actions previously existing, now existing, or hereinafter existing; however, it shall not include any criminal matters.
(Ord. 20-7, 2-3-2020)