§ 2-7. Indemnification of municipal officials for losses and expenses incurred in defense of litigation instituted against official for actions in discharging municipal duties.
(A)
Definitions.
(1)
"Official" shall mean the mayor, every city commissioner, officer, agent, or employee of the city, whether elected, appointed or employed, with or without compensation.
(2)
"Indemnification" shall include the payment of all expenses and losses, including reasonable legal fees, paid, incurred or imposed upon an official as a result of any litigation or proceeding.
(3)
"Expense" shall include any monies paid by an official and incurred in the defense or settlement of any litigation or proceeding, including but not limited to, legal fees, costs of litigation, and the amount of any settlement, judgment or verdict.
(4)
"Hearing officer" shall mean the city manager or his designee, unless otherwise required by law, including, but not limited to, Section 286.011 Florida Statutes.
(B)
Indemnification.
(1)
Whenever in the performance of, or in connection with the performance of, official duties on behalf of the city, an official has been involved or shall hereafter be involved in a dispute, proceeding or litigation, either in a representative or personal capacity, with or without the city as a co-party in the matter, the city shall promptly indemnify said official. The city shall promptly preserve, protect, defend, aid and assist said official, and exonerate, indemnify and hold harmless said official from and against any and all expenses, liabilities, claims, demands, proceedings, damages, losses, charges, advances, disbursements, payments, expenses, costs, including reasonable counsel fees, awards, settlements, judgments, decrees and mandates, paid, incurred by, or imposed upon said official in all disputes, proceedings, trials and appeals, by reason of said official being or having been a city official, even though he is no longer an official at the time the expenses are incurred or the claims are made against him. The protection herein guaranteed shall exist during and after the term of office or employment, for liabilities incurred during the term of office or employment.
(2)
Each official protected hereby shall promptly cooperate in his or her own defense, and shall:
(a)
Ensure the city is properly noticed of the claim by providing a copy of all summons, writs, complaints and any other documents pertaining to the claim made against said official to the city attorney's office for review;
(b)
Attend hearings, trials, and depositions and furnish such evidence as shall be needed;
(c)
Grant the city full rights of subrogation and the right to recover under any claims, offsets, or counterclaims of the protected official arising out of or in connection with the controversy involved in this section; provided, that if the protected official shall recover any sum, then the city shall deduct all disbursements, costs, and expenses of litigation including attorneys' fees, and any award against the city, and the remainder shall belong to the protected official;
(d)
Execute and deliver to the city all assignments, papers, and documents needed to carry out the purposes of this section.
(e)
In the event the official fails to promptly cooperate in his or her defense as required by this subsection, and the failure results in compromising the defense of the case or the delay results in insurance being denied, [the] city shall not be obligated to indemnify and/or defend said official.
(3)
All officials of the city are hereby authorized, required and directed promptly to perform any and all acts necessary, expedient or proper to carry out the purposes of this section, including, but not limited to the following:
(a)
The city attorney or his designee shall appear in all disputes, proceedings, litigation and appellate proceedings, and conduct the same on behalf of said officials, and is authorized to incur costs and expenses;
(b)
The city comptroller shall promptly pay, disburse, and reimburse the necessary funds required, for said costs, expenses and indemnification and shall satisfy any awards, settlements, judgments, mandates or decrees recovered or entered against said officials;
(c)
The city officials shall execute as principal or surety any and all judicial or other bonds, including supersedeas or appeal bonds, or post cash or securities in lieu of surety bonds;
(d)
The payment of all the foregoing sums is hereby declared to be a proper municipal purpose and expense, and the appropriation of all funds necessary for such payment is hereby authorized and made.
(4)
The city may, for good cause, refuse to proceed with the indemnification and/or defense by use of the following procedure:
(a)
The official shall be given a written notice that the city has refused to proceed with the indemnification and/or defense because the controversy has no connection with official duties. The notice shall state the particulars of the complaint with enough detail so that the person may prepare his defense;
(b)
A hearing will be held if it is requested by the official. At the hearing, which shall be before the hearing officer, the city and the official shall produce witnesses who shall give sworn testimony;
(c)
At the conclusion of the hearing, the hearing officer shall make findings of fact and conclusions on the evidence. If the hearing officer finds that the controversy has no connection with official duties, and involves only a private or personal matter, then the city shall refuse to proceed with the indemnification and defense.
(5)
If the official is indemnified and/or defended, after final determination, the city may, for good cause, refuse to pay any judgment or decree entered against any official by following this procedure after a final judgment or decree, including any appellate proceedings:
(a)
The official shall be given a written notice that the city has refused to proceed with the payment of any judgment or decree because the official did not act in good faith and/or committed a flagrant, willful, and intentional violation of a city or county ordinance, or any state or federal law. The notice shall state the particulars of the complaint with enough detail so that the person may prepare his defense;
(b)
A hearing will be held if it is requested by the official. At the hearing, which shall be before the hearing officer, the city and the official shall produce witnesses who shall give sworn testimony;
(c)
At the conclusion of the hearing the hearing officer shall make findings of fact and conclusions on the evidence. If the hearing officer concludes that the official did not act in good faith and/or committed a flagrant, willful and intentional violation of a city or county ordinance, or any state or federal law, then the city may refuse to pay all or a part of said judgment or decree;
(d)
If the official willfully fails or refuses to cooperate in his defense, then the city may, to the extent that the city was damaged thereby, reduce the protection and indemnification provided under this section.
(6)
At all hearings hereunder the sole question shall be the obligation of the city to indemnify the official, and the merits of the claim made against the official shall not be an issue, so that the defense of the claim shall not be prejudiced.
(Ord. of 6-6-72, §§ 1, 2; Ord. No. 2016-111, § 1, 1-4-16)
Editor's note
Ord. of June 6, 1972 did not expressly amend this Code, hence inclusion of §§ 1 and 2 herein as § 2-7 was at the discretion of the editors.