2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 6 - New York City Off-Track Betting Corporation › 619 - Civil Actions Against Employees of the Corporation.

§ 619. Civil actions against employees of the corporation.  1. As used
  in this section the following terms shall mean and include:
a. "Corporation counsel." The corporation counsel of the city.
b. "Employee." Any officer, director or employee of the corporation, a
  former  officer,  director  or  employee  of the corporation, his or her
  estate  or  judicially  appointed  personal  representative.  The   term
  employee shall not include an independent contractor.
2.  At the request of the employee and upon compliance by the employee
  with the provisions of subdivision four of this section, the corporation
  shall provide for the defense of an employee  in  any  civil  action  or
  proceeding  in  any  state  or  federal  court  including  actions under
  sections  nineteen   hundred   eighty-one   through   nineteen   hundred
  eighty-eight of title forty-two of the United States code arising out of
  any alleged act or omission which the corporation counsel finds occurred
  while  the employee was acting within the scope of his employment and in
  the discharge of his duties and was not in  violation  of  any  rule  or
  regulation  of  the  corporation at the time the alleged act or omission
  occurred. This duty to provide for a defense shall not arise where  such
  civil   action  or  proceeding  is  brought  by  or  on  behalf  of  the
  corporation, the city or state or any agency of either.
3. The corporation shall indemnify and save harmless its employees  in
  the  amount of any judgment obtained against such employees in any state
  or federal court, or in the amount of any settlement of a claim approved
  by the corporation counsel and the comptroller, provided that the act or
  omission from which such judgment or settlement arose occurred while the
  employee was acting within the  scope  of  his  employment  and  in  the
  discharge  of  his  duties  and  was  not  in  violation  of any rule or
  regulation of the corporation at  the  time  the  alleged  damages  were
  sustained,  the  duty  to indemnify and save harmless prescribed by this
  subdivision shall not arise where the injury  or  damage  resulted  from
  intentional  wrongdoing or recklessness on the part of the employee. Any
  judgment or settlement pursuant to this section shall be a cost  of  the
  corporation's  functions  and  shall  be  payable from the moneys of the
  corporation.
4. The duty to defend or indemnify and  save  harmless  prescribed  by
  this section shall be conditioned upon:
a.  delivery  to  the  corporation  counsel  at  the office of the law
  department of the city by the employee of the original or a copy of  any
  summons,  complaint, process, notice, demand or pleading within ten days
  after he or she is served with such document, and
b. the full cooperation of the employee in the defense of such  action
  or  proceeding  and  in  defense of any action or proceeding against the
  corporation based upon the same act or omission, and in the  prosecution
  of  any  appeal. Such delivery shall be deemed a request by the employee
  that the corporation provide for his or her  defense  pursuant  to  this
  section.  In  the  event  that  the  corporation counsel shall assume an
  employee's defense and thereafter the employee fails to  or  refuses  to
  cooperate  in  the  formation or presentation of his or her defense, the
  court shall permit the  corporation  counsel  to  withdraw  his  or  her
  representation  ten  days after giving written notice to the employee of
  his or her intention to discontinue such representation.
5. In the event  that  the  act  or  omission  upon  which  the  court
  proceeding  against  the employee is based was or is also the basis of a
  disciplinary  proceeding  by  the  corporation  against  the   employee,
  representation  and  indemnification  pursuant  to  this  section may be
  withheld:
a. until such disciplinary proceeding has been resolved, and
b. unless the resolution of the disciplinary proceeding exonerated the
  employee as to such act or omission.
6.   Every  action  or  proceeding  instituted  against  an  employee,
  including an action brought to enforce a provision of sections  nineteen
  hundred  eighty-one  through  nineteen  hundred  eighty-eight  of  title
  forty-two of the United States code, shall be commenced pursuant to  the
  provisions  of  section  six hundred eighteen of this chapter and within
  one year and ninety days. No action or proceeding instituted against  an
  employee other than one instituted pursuant to sections nineteen hundred
  eighty-one  through  nineteen hundred eighty-eight of title forty-two of
  the United States code shall be prosecuted  or  maintained  against  the
  corporation  or  an employee unless notice of claim shall have been made
  and served upon the corporation in compliance with section  six  hundred
  eighteen of this chapter and within ninety days after the claim arises.
7.  The  provisions  of this section shall not be construed to impair,
  alter, limit or modify the rights and obligations of any  insurer  under
  any policy of insurance.
8.  The  provisions  of  this  section  shall apply to all actions and
  proceedings pending  upon  the  effective  date  thereof  or  thereafter
  instituted,  except  that  the  provisions  of  subdivision  six of this
  section shall apply only to actions and  proceedings  instituted  on  or
  after the effective date of this section.
9. The provisions of this section shall not be construed in any way to
  impair,  alter,  limit,  modify,  or  abrogate  or restrict any immunity
  available to or conferred upon the corporation or any employee,  or  any
  right  to  defense  indemnification  provided  in accordance with, or by
  reason of, any other law.
10. Notwithstanding any inconsistent provision of  this  section,  the
  provisions  of  this  section  shall  not  apply  to any civil action or
  proceeding commenced after  the  effective  date  of  this  subdivision.
  Further,  the  corporation  counsel  may  continue representation in any
  action or proceeding brought by or against  such  corporation  prior  to
  such  effective  date. The corporation counsel and the corporation shall
  be empowered to agree to the transfer of the defense or  prosecution  of
  any  such  action or proceeding to such other counsel as shall be agreed
  upon.