HomeMy WebLinkAboutOrdinance No. O99-04ORDINANCE NO. 099- 4
AN ORDINANCE OF THE CITY COUNCIL OF TI~E CITY OF
LAUREL PROVIDING THAT TI~E LAUREL MUNICIPAL CODE BE
AMENDED BY ADDING A NEW CHAPTER TO BE NUMBERED
CHAPTER 2.94; PROVIDING FOR TIlE IMMUNIZATION, DEFENSE,
AND INDEMNIFICATION OF PUBLIC OFFICIALS AND PUBLIC
EMPLOYEES FOR LIABILITY RESULTING FROM AN ALLEGED
VIOLATION OF CONSTITUTIONAL INITIATIVE 75.
WHEREAS, M.C.A §2-9-305 provides for the immunization, defense and
indemnification of public officers and employees civilly sued for their actions taken within the
course and scope &their employment with the City; and
WHEREAS, the threat of liability may significantly deter service in local
government, thereby discouraging the City from obtaining qualified citizens from serving or from
applying for employment; and
WHEREAS, the November 3, 1998 electorate passed Constitufional Initiative 75
requiring a public vote on all new taxes and removing sovereign immunity for any public official
or employee violating said initiative; and
WHEREAS, there is uncertainty as to whether said Initiative may have voided
the indemnification provided for public officers and employees pursuant to M.C.A. {}2.9-305; and
WHEREAS, the potential civil liability for violations of Constitutional Initiative
75 is unknown because of the many and varied possibilities of interpretation &the provisions of
this Initiative. Thereby, it is deemed necessary to indenmifij the public officials and public
employees of the City of Laurel to avoid the apprehension of executing necessary functions and
duties and avoid liability for errors in judgement regarding the provisions of Constitutional
Initiative 75.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Laurel, Montana that:
SECTION 1
The Laurel Municipal Code is hereby amended by adding a new chapter, to be
numbered Chapter 2.94, to read as follows:
"CHAPTER 2.94"
Immunization, Defense and Indemnification of Public Officers and City Employees
2.94.010. Purpose.
It is the purpose of this section to provide for immunization, defense, and indemnification
of public officers and public employees of the City of Laurel civilly sued for alleged violations of
Constitutional Initiative 75 for actions taken within the course and scope of their employment.
2.94.020. Immunization, Indemnification and Defense.
In any civil action brought against any public official or public employee of the City of
Laurel alleging a violation of Constitutional Initiative 75, the City of Laurel shall then defend the
action on behalf of the public official or public employee and indemnify the public official or
employee for any liability resulting from the alleged violation of Constitutional Initiative 75,
except as provided in Section 2.94.030.
2.94.030. Exceptions.
In a civil action alleging a violation of Constitutional Initiative 75, in which a public
official or public employee of the City of Laurel is a party defendant, the public official or public
employee may not be defended or indemnified by the city of Laurel for any money judgments or
legal expenses, including attorney's fees, to which the public official or public employee may be
subject as a result ora suit, if a judicial determination is made that:
A. The conduct upon which the claim is based constitutes oppression,
fraud, or malice or for any other reason does not arise out of the course
and scope of the public official or public employee's employment.
B. The public official or public employee compromised or settled the claim without
the consent of the City of Laurel: or
C. The public official or public employee failed or refused to cooperate reasonable in
the defense of the case.
If no judicial determination has been made applying the exclusions provided above, the
City of Laurel may determine whether those exclusions apply. However, if there is a dispute as to
whether the exclusions apply, and City of Laurel concludes it should clarify its obligation to the
public official or public employee arising under this section by commencing a declaratory action
or other legal action, the City is obligated to provide a defense or assume the costs of the defense
of the public official or public employee until a final judgment is rendered in such action holding
that the city of Laurel has not obligation to defend the public official or public employee. The
City has no obligation to provide a defense to the public official or public employee in a
declaratory judgment action or other legal action brought against the public official or public
employee by the city of Laurel under this section.
2.94.040. Notice.
Upon receipt of service of summons and Complaint alleging a violation of Constitutional
Initiative 75, the public official or public employee shall give written notice to the Mayor or the
City Attorney requesting that a defense to this action be provided by the City of Laurel.
SECTION 2
Repealer
All resolutions, ordinances and sections of the Laurel Municipal Code and parts thereof in
conflict herewith are hereby repealed.
SECTION 3
Severability
If any provisions of this ordinance or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect the other provisions of this ordinances
which may be given effect without the invalid provision or application and, to this end, the
provisions of this ordinance are declared to be severable.
SECTION 4
Effective Date.
This ordinance shall be in full force and effect 30 days after the final passage of this
Ordinance.
PASSED by the City Council of the City of Laurel, Montana on first reading at a
regular session thereof held on the 2nd day of February, 1999.
PASSED, ADOPTED AND APPROVED by the City Council of the City of
Laurel, Montana, on second reading at a regular session thereof held on the 16 th day of
February, 1999.
M~r
ATTEST:
City Clerk -- Don Hackmann
APPROVED AS 'I~ ,R~VI:
Ci~A'lCt~mey- V. Joe Leckie