Section 402-A. Defense and indemnification in civil actions against employees of the New York city housing authority

1. As used  in  this
  section,  the  term  "employee"  shall  mean  the members, including the
  chairman of the New York city housing authority appointed by  the  mayor
  of  the city of New York, officers, employees, or a former employee, 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 this section, the New York city housing authority
  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 New York city  housing  authority  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 New York city housing
  authority 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 New York
  city housing authority against the employee. A member of  the  New  York
  city housing authority police force, when within the geographical limits
  of  his  or her jurisdiction, although excused from official duty at the
  time, for the purposes of this section, shall be deemed to be acting  in
  the  discharge  of  duty  when  engaged  in  the  immediate  and  actual
  performance of a public  duty  imposed  by  law  and  such  public  duty
  performed  was for the benefit of all the citizens of the community, and
  the New York city housing authority derived no special  benefit  in  its
  corporate capacity.
    3.  The  New  York  city  housing  authority  shall indemnify and save
  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  New  York  city  housing
  authority  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
  New York city housing authority at the time  the  alleged  damages  were
  sustained.
    4.  The duty to indemnify and save 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.
    5.  Nothing  in this section shall authorize the New York city housing
  authority to indemnify or save harmless  an  employee  with  respect  to
  punitive or exemplary damages, fines or penalties.
    6.  The  duty  to defend and indemnify and save harmless prescribed by
  this section shall be conditioned upon (i) delivery by the  employee  to
  the  chairman,  general  manager or general counsel of the New York city
  housing authority at the office of the New York city  housing  authority
  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 (ii) the full cooperation of the employee in the
  defense  of  such  action  or proceeding and in defense of any action or
  proceeding against the New York city housing authority  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  New  York
  city  housing  authority provide for his or her defense pursuant to this
  section. In the event that the New York  city  housing  authority  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 New York city housing authority to
  withdraw its representation ten days after giving written notice to  the
  employee of its intention to discontinue such representation.
    7.  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 New York city housing authority against
  the employee, representation and indemnification by the  New  York  city
  housing  authority,  as  set  forth in this section, may be withheld (i)
  until such disciplinary proceeding has been resolved and (ii) unless the
  resolution of the disciplinary proceeding exonerated the employee as  to
  such act or omission.
    8.  Subject  to the conditions set forth in this section, the employee
  shall be entitled to representation by the general counsel  of  the  New
  York  city  housing authority 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  New  York  city  housing
  authority  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 New York city housing
  authority shall notify the employee in  writing  of  such  determination
  that  the  employee  is  entitled  to be represented by private counsel.
  Provided, however, that the New York city housing authority 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 New York city housing authority to such private
  counsel from time to time during the pendency of  the  civil  action  or
  proceeding.
    9. 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.
    10.  The  benefits  of  this  section shall inure only to employees as
  defined herein 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.
    11.  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.
    12.  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  New
  York   city   housing   authority,   or  any  right  to  defense  and/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.
    13. Every action or proceeding instituted pursuant to  the  provisions
  of  this  section  shall  be  commenced  pursuant to section one hundred
  fifty-seven of this chapter and within one  year  and  ninety  days.  No
  action  or  proceeding  instituted  pursuant  to  the provisions of this
  section shall be prosecuted or maintained  against  the  New  York  city
  housing  authority,  or an officer or employee thereof, unless notice of
  claim or demand shall have been made and served upon the New  York  city

  housing  authority in compliance with section one hundred fifty-seven of
  this chapter and within ninety days after the claim arises.
    14. If any provision of this section or the application thereof to any
  person  or circumstance be held unconstitutional or invalid, in whole or
  in part by any court, such holding of unconstitutionality or  invalidity
  shall  in no way affect or impair any other provision of this section or
  the  application  of  any  such  provision  to  any  other   person   or
  circumstance.
    15.  The  provisions  of  this  section shall apply to the actions and
  proceedings set forth herein notwithstanding any inconsistent provisions
  of state or local law.