2023 New York Laws › PBG - Public Housing › Article 15 - New York City Public Housing Preservation Trust › 645 - Limited Liability.

§  645.  Limited  liability.  1.  As  used  in  this section, the term
  "employee" shall mean the members of  the  board,  president,  officers,
  employees,  or  a  former  employee,  his  or  her  estate or judicially
  appointed personal representative.
2. Neither the members of the board nor any officers  or  employee  of
  the  trust  acting  on  behalf thereof, while acting within the scope of
  such person's authority, shall be subject  to  any  liability  resulting
  from carrying out any of the powers expressly given in this article.
3. At the request of the employee, and upon compliance by the employee
  with  the  provisions  of  this section, the trust shall provide for the
  defense of an employee in any civil action or proceeding in any state or
  federal court, arising out of any alleged  act  or  omission  which  the
  trust  finds  occurred while the employee was acting within the scope of
  his or her public employment and in the discharge of his or  her  public
  duties  and  was not in violation of any rule or regulation of the trust
  at the time the alleged act or omission occurred. This duty  to  provide
  for  a  defense  and  indemnification  shall  not arise where such civil
  action or proceeding is brought by or on behalf of the trust against the
  employee.
4. The trust shall indemnify and hold harmless its  employees  in  the
  amount  of  any  civil  judgment  obtained against such employees in any
  state or federal court, or in the amount of any settlement  of  a  claim
  approved  by the trust provided that the act or omission from which such
  judgment or settlement arose occurred  while  the  employee  was  acting
  within the scope of his or her public employment and in the discharge of
  his  or  her  public  duties  and  was  not  in violation of any rule or
  regulation of the trust at the time the alleged damages were  sustained.
  The duty to indemnify and hold harmless prescribed by this section shall
  not  arise  where  the  injury  or  damage  resulted from an intentional
  wrongdoing, or recklessness on the part of the employee. Nothing in this
  section shall authorize the trust  to  indemnify  or  hold  harmless  an
  employee  with  respect  to  punitive  or  exemplary  damages,  fines or
  penalties.
5. The duty to defend and indemnify and hold  harmless  prescribed  by
  this  section  shall be conditioned upon (a) delivery by the employee to
  the president or general counsel of the trust at the office of the trust
  of the original or a copy of any  summons,  complaint,  claim,  process,
  notice,  demand or pleading within ten days after the employee 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 trust 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 trust provide for his or her defense pursuant
  to this section. In the event that the trust shall assume an  employee's
  defense and thereafter the employee fails or refuses to cooperate in the
  formation  or presentation of his or her defense, the court shall permit
  the trust to withdraw its representation ten days after  giving  written
  notice   to   the   employee   of  its  intention  to  discontinue  such
  representation.
6. 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   trust   against   the   employee,
  representation  and  indemnification  by the trust, as set forth in 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.
7.  Subject to the conditions set forth in this section, such employee
  shall be entitled to representation by the general counsel of the  trust

  or  by  any  attorney  or  attorneys  designated by the general counsel,
  provided, however, that the employee shall be entitled to be represented
  by private counsel  of  his  or  her  choice  in  any  civil  action  or
  proceeding  whenever  the  trust determines that representation would be
  inappropriate, or whenever a court, upon appropriate motion or otherwise
  by a special proceeding, determines that a conflict of  interest  exists
  and  that  the employee is entitled to be represented by private counsel
  of the employee's choice. The general counsel of the trust shall  notify
  the  employee  in  writing  of  such  determination that the employee is
  entitled to be represented by private counsel. Provided,  however,  that
  the  trust  may  require,  as  a  condition  to  payment of the fees and
  expenses  of  such  representation,  that  appropriate  groups  of  such
  employees be represented by the same counsel. Reasonable attorneys' fees
  and  litigation  expenses  shall  be  paid  by the trust to such private
  counsel from time to time during the  pendency  of  a  civil  action  or
  proceeding.
8. Any dispute with respect to representation of multiple employees by
  a  single counsel or the reasonableness of attorneys' fees or the amount
  of litigation expenses shall be resolved by the court upon motion or  by
  way of a special proceeding.
9.  The  benefits  of  this  section  shall inure only to employees as
  defined in this section and shall not enlarge or diminish the rights  of
  any  other party nor shall any provision of this section be construed to
  affect, alter or repeal any provision of the workers' compensation law.
10. The provisions of this section shall not be construed in  any  way
  to  impair,  alter,  limit  or  modify the rights and obligations of any
  insurer under any policy of insurance.
11. Except as otherwise specifically provided  in  this  section,  the
  provisions  of this section shall not be construed in any way to impair,
  alter, limit, modify, abrogate or restrict any immunity available to  or
  conferred  upon  any  unit,  entity,  member, officer or employee of the
  trust, or any right to  defense  or  indemnification  provided  for  any
  member, officer or employee by, in accordance with, or by reason of, any
  other provision of state, federal or local law or common law.
12.  Every  action or proceeding instituted pursuant to the provisions
  of this section shall be  commenced  pursuant  to  section  six  hundred
  forty-one  of  this  article, and subject to any condition or limitation
  set forth in such section.
13. The provisions of this section shall  apply  to  the  actions  and
  proceedings set forth herein notwithstanding any inconsistent provisions
  of state or local law.