(a) Subject to the limitations set forth in subsections (b) and (c) hereof and provided that the City shall not pay any award of punitive or exemplary damages, the City shall pay any judgment rendered against an officer in any action in tort or contract, or any compromise or settlement of such action.
(b) The City may refuse to pay any judgment, compromise or settlement in any action in tort or contract against an officer, or if the City pays any judgment, compromise or settlement, it may recover from the officer the amount of such payment and the costs to defend, if:
(1) The officer acted or failed to act because of fraud, malice or corruption;
(2) The action was outside the actual or apparent scope of the officer's employment;
(3) The officer willfully failed or refused to assist the defense of the action; or
(4) The officer compromised or settled the claim without the consent of the legislative body of the City.
(c) An officer who is being provided defense in an action in tort or contract by the City shall not enter into any compromise or settlement of the action without the appoval of the legislative body of the City.
(Ord. 33-86. Passed 10-27-86.)