(A) To the fullest extent permitted by the Constitution of the State and applicable law, including ILCS Ch. 745, Act 10, §§ 2-302 and 9-102, any officer or employee of the city, including members of any boards or commissions thereof, shall be indemnified, defended, held harmless by the city from and against all liabilities for compensatory damages, expenses of investigation, judgments and amounts paid in settlement which may be imposed upon or reasonably incurred or paid by such officer or employee in connection with or resulting from any claim made, or any action, suit, proceeding or investigation in which such officer or employee may be involved, and which allegedly arose out of an act or omission occurring within the scope of employment or official duties as such officer or employee, whether or not such officer or employee holds such position at the time of such claim, action, suit proceeding or investigation; provided, however, that such indemnification may be provided by the joint self- insurance pool in which the city is a member, or by a commercial insurance company from which the city has purchased a policy providing for such coverage, in which case the city shall not be obligated to provide additional indemnity or defense, and further provided that the foregoing indemnity shall not extend to any of the following:
(1) Any liability or cost with respect to any matter as to which such officer or employee is finally adjudged to be guilty of bad faith, or actual malice, or willful and wanton misconduct in the performance of the duties as such officer or employee, such activity being outside the scope of employment or official duties;
(2) Any payment, expense or cost arising out of a settlement of any claim, action, suit or proceeding, unless:
(a) Settlement shall be approved by the court having jurisdiction over such claim, action, suit or proceeding, with express knowledge of the existence of the indemnification provided hereby; or
(b) Such settlement shall have been made upon the written opinion of the City Attorney to the effect that there is no reasonable grounds for any finding of bad faith, actual malice, willful and wanton misconduct or other acts outside the scope of official duties or employment on the part of such officer or employee that proximately caused the damage complained of;
(3) Any liability judgment or amount paid in settlement in connection with or resulting from any claim, action, suit, or proceeding in which such officer or employee and the city itself or officers of the city acting in their governmental capacities are adverse parties; or
(4) The cost of independent legal representation in any such action, suit or proceeding, if the city offers to provide a legal defense by an attorney or attorneys chosen by the city, by the city's joint self-insurance pool, or by the city's commercial insurance company, with respect to such claim, action, suit, proceeding or investigation.
(B) The rights of indemnification as provided in this section shall be in addition to any other rights to which such officer or employee may otherwise be entitled as a matter of law.
(C) Indemnification shall be provided by the city to police officers as provided by applicable law, including ILCS Ch. 65, Act 5, § 1-4-6.
(Ord. 01-52, passed 2-26-02)