(A) The city shall, except as provided in division (B) of this section, indemnify any current or former elected or appointed officer, employee or member of a board or commission of the city, whether or not such person is compensated for such service, from liability incurred in the performance of his duties by paying any judgment in, or amount negotiated in settlement of, any civil action arising under federal law, the law of Ohio or the ordinances of the city. The reasonableness of the amount of any consent judgment or settlement shall be subject to the review and approval of the Law Director and the City Council.
(B) The city shall not indemnify an officer or employee under any of the following circumstances:
(1) To the extent the officer or employee is covered by a policy of insurance for civil liability purchased by the municipality;
(2) When the officer or employee acts manifestly outside the scope of his employment or official responsibilities, or with malicious purpose, or in bad faith, or in a wanton or reckless manner;
(3) For any portion of a judgment that represents punitive or exemplary damages:
(4) For any portion of a consent judgment or settlement that is unreasonable.
(C) The city may purchase a policy of policies of insurance on behalf of officers and employees of the city providing coverage for amounts in excess of $1,000,000 per occurrence incurred in connection with any civil action, demand, or claim against the officer or employee by reason of an act or omission by the officer or employee occurring in the performance of his 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 an officer or employee;
(2) The operation of R.C. § 9.83.
(E) The indemnification of officers or employees against judgments or settlements pursuant to this section shall be accomplished only through the following procedure:
(1) If the city determines that the actions or omissions of its officer or employee 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 Law Director, specifying that the city will indemnify the officer or employee 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 municipality of the judgment or settlement amount will be made, and the agreement shall not be effective until it is approved by the officer or employee to be indemnified, the Law Director and the City Council. The Law Director shall approve the indemnity agreement unless he finds that division (B) of this section prohibits the municipality from indemnifying the officer or employee, or prohibits the city from indemnifying the officer or employee for a portion of a judgment or settlement and the indemnity agreement would indemnify the officer or employee 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) An officer or employee may commence an action against the city in a court of competent jurisdiction to prove that he is entitled to indemnification pursuant to division (A) of this section and that division (B) of this section does not prohibit or limit his indemnification and seeking either a judgment against the city for a sum of money that the officer or employee has paid to satisfy a judgment or settlement or an order directing the city to pay a judgment or settlement against the officer or employee 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 the officer or employee 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 officer or employee if an appeal is filed in the action, or upon execution of any settlement agreement requiring payment of money by the officer or employee.
(Ord. 8-1988, passed 2-3-88)