§ 2.374. Indemnification and defense of city officers and employees.

(a)

Definitions. In this section:

Covered person includes elected and appointed city officers, full-time and part-time city employees, volunteers and former officers, volunteers or employees and the estate of an officer, employee or a volunteer or former officer employee or volunteer having performed or performing work for the city under the supervision and direction of a city employee; but independent contractors performing work for the city are not included in this term.

Loss means a sum of money which a covered person is legally obligated to pay.

(b)

Coverage generally. The city shall indemnify and defend a covered person, under this section, against a loss arising from any claim, suit or judgment relating to an act or omission of the covered person during the course and scope of the covered person's office, employment or assigned volunteer work for the city.

(c)

Limits. In cases arising from incidents or occurrences subject to the Texas Tort Claims Act, V.T.C.A., Civil Practices and Remedies Code § 101.001 et seq., the city's obligation to indemnify is limited to the limits of liability for municipalities that are established by that act, regardless of whether a claim is made against the city based on the incident or occurrence.

(d)

Additional coverage. In addition to the coverage described in subsections (b) and (c) of this section, the city will pay the following:

(1)

The city's expenses in investigating and defending the claim or suit;

(2)

Court costs assessed against a covered person;

(3)

Reasonable expenses of the covered person incurred at the city's request; and

(4)

Attorney's fees ordered by a court to be paid by the covered person.

(e)

Criteria for coverage. To be entitled to coverage under this section, a covered person must:

(1)

Notify the city attorney in writing as soon as practicable, but not later than three working days, after receipt of written notice of a claim or lawsuit;

(2)

Cooperate with the city attorney in the negotiation of settlements, conduct of suits and enforcement of any rights of the city or the covered person against any claimant;

(3)

Attend depositions, hearings and trials and assist in securing evidence and obtaining the attendance of witnesses;

(4)

Not, except with the consent of the city attorney, enter into any agreement or stipulation concerning a claim or lawsuit;

(5)

Not, except with the consent of the city attorney or upon request of a police officer at the scene of an accident, give any oral or written statement concerning a claim or lawsuit; and

(6)

Not, except at the covered person's own cost, voluntarily make any payment, assume any obligation or incur any expense for a claim or lawsuit without the consent of the city attorney.

(f)

Exemptions. Coverage under this section will not apply to a claim or suit brought against a covered person:

(1)

By the city;

(2)

Arising from the intentional or knowing violation of a penal statute or ordinance committed by or with the knowledge and consent of the covered person or arising from a fraudulent act committed by or at the direction of the covered person;

(3)

Arising while the covered person is operating a city vehicle without proper authorization or while operating a city vehicle for personal or private business;

(4)

If the covered person joins or attempts to join a claim against the city under this section with a claim or suit against the covered person; or

(5)

If the employee fails to comply with subsection (e) of this section.

(g)

Investigation, negotiation, settlement. The city may investigate, negotiate and settle any claim or suit against a covered person as it determines to be reasonable and prudent.

(h)

Subrogation of rights. A covered person, in accepting coverage under this section, agrees to allow the city to be subrogated to any rights of the covered person to the extent of the city's obligations and payments under this section.

(i)

Conflict of interest. If the city attorney determines there is a conflict between the interests of the city and those of a covered person involving a claim or suit, the city may designate and pay the reasonable fees of a private attorney to represent the covered person.

(j)

Disciplinary action. Nothing in this section will affect the city's right to take disciplinary action against a covered person for conduct otherwise indemnified or defended by the city under this section.

(Code 1970, § 2-10)

State law reference

Indemnification, V.T.C.A., Civil Practices and Remedies Code, § 102.001 et seq.