§ 619 — Civil actions against employees of the corporation

§ 619. Civil actions against employees of the corporation. 1. As used\nin this section the following terms shall mean and include:\n a. "Corporation counsel." The corporation counsel of the city.\n b. "Employee." Any officer, director or employee of the corporation, a\nformer officer, director or employee of the corporation, his or her\nestate or judicially appointed personal representative. The term\nemployee shall not include an independent contractor.\n 2. At the request of the employee and upon compliance by the employee\nwith the provisions of subdivision four of this section, the corporation\nshall provide for the defense of an employee in any civil action or\nproceeding in any state or federal court including actions under\nsections nineteen hundred eighty-one through nineteen hundred\neighty-eight of title forty-two of the United States code arising out of\nany alleged act or omission which the corporation counsel finds occurred\nwhile the employee was acting within the scope of his employment and in\nthe discharge of his duties and was not in violation of any rule or\nregulation of the corporation at the time the alleged act or omission\noccurred. This duty to provide for a defense shall not arise where such\ncivil action or proceeding is brought by or on behalf of the\ncorporation, the city or state or any agency of either.\n 3. The corporation shall indemnify and save harmless its employees in\nthe amount of any judgment obtained against such employees in any state\nor federal court, or in the amount of any settlement of a claim approved\nby the corporation counsel and the comptroller, provided that the act or\nomission from which such judgment or settlement arose occurred while the\nemployee was acting within the scope of his employment and in the\ndischarge of his duties and was not in violation of any rule or\nregulation of the corporation at the time the alleged damages were\nsustained, the duty to indemnify and save harmless prescribed by this\nsubdivision shall not arise where the injury or damage resulted from\nintentional wrongdoing or recklessness on the part of the employee. Any\njudgment or settlement pursuant to this section shall be a cost of the\ncorporation's functions and shall be payable from the moneys of the\ncorporation.\n 4. The duty to defend or indemnify and save harmless prescribed by\nthis section shall be conditioned upon:\n a. delivery to the corporation counsel at the office of the law\ndepartment of the city by the employee of the original or a copy of any\nsummons, complaint, process, notice, demand or pleading within ten days\nafter he or she is served with such document, and\n b. the full cooperation of the employee in the defense of such action\nor proceeding and in defense of any action or proceeding against the\ncorporation based upon the same act or omission, and in the prosecution\nof any appeal. Such delivery shall be deemed a request by the employee\nthat the corporation provide for his or her defense pursuant to this\nsection. In the event that the corporation counsel shall assume an\nemployee's defense and thereafter the employee fails to or refuses to\ncooperate in the formation or presentation of his or her defense, the\ncourt shall permit the corporation counsel to withdraw his or her\nrepresentation ten days after giving written notice to the employee of\nhis or her intention to discontinue such representation.\n 5. In the event that the act or omission upon which the court\nproceeding against the employee is based was or is also the basis of a\ndisciplinary proceeding by the corporation against the employee,\nrepresentation and indemnification pursuant to this section may be\nwithheld:\n a. until such disciplinary proceeding has been resolved, and\n b. unless the resolution of the disciplinary proceeding exonerated the\nemployee as to such act or omission.\n 6. Every action or proceeding instituted against an employee,\nincluding an action brought to enforce a provision of sections nineteen\nhundred eighty-one through nineteen hundred eighty-eight of title\nforty-two of the United States code, shall be commenced pursuant to the\nprovisions of section six hundred eighteen of this chapter and within\none year and ninety days. No action or proceeding instituted against an\nemployee other than one instituted pursuant to sections nineteen hundred\neighty-one through nineteen hundred eighty-eight of title forty-two of\nthe United States code shall be prosecuted or maintained against the\ncorporation or an employee unless notice of claim shall have been made\nand served upon the corporation in compliance with section six hundred\neighteen of this chapter and within ninety days after the claim arises.\n 7. The provisions of this section shall not be construed to impair,\nalter, limit or modify the rights and obligations of any insurer under\nany policy of insurance.\n 8. The provisions of this section shall apply to all actions and\nproceedings pending upon the effective date thereof or thereafter\ninstituted, except that the provisions of subdivision six of this\nsection shall apply only to actions and proceedings instituted on or\nafter the effective date of this section.\n 9. The provisions of this section shall not be construed in any way to\nimpair, alter, limit, modify, or abrogate or restrict any immunity\navailable to or conferred upon the corporation or any employee, or any\nright to defense indemnification provided in accordance with, or by\nreason of, any other law.\n 10. Notwithstanding any inconsistent provision of this section, the\nprovisions of this section shall not apply to any civil action or\nproceeding commenced after the effective date of this subdivision.\nFurther, the corporation counsel may continue representation in any\naction or proceeding brought by or against such corporation prior to\nsuch effective date. The corporation counsel and the corporation shall\nbe empowered to agree to the transfer of the defense or prosecution of\nany such action or proceeding to such other counsel as shall be agreed\nupon.\n