Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Government Liability Indemnification topic
No spam. Unsubscribe anytime.
Board approves indemnification resolution for mayor and aldermen; city attorney warns of possible costs
Summary
The board approved Resolution No. 20-25 to allow the city to indemnify members of the Board of Mayor and Aldermen for legal expenses in certain circumstances not covered by insurance; members discussed potential exposure and the need for limited, case-by-case application.
TULLAHOMA, Tenn. — The Board of Mayor and Aldermen voted unanimously to approve Resolution No. 20-25, authorizing the city to indemnify members of the governing board for legal expenses arising from official acts in certain circumstances.
City legal counsel told the board the city’s existing liability insurance covers many risks but gaps remain; the indemnification resolution is intended to allow the city to pay legal defense costs when insurance does not provide coverage. The attorney emphasized indemnification would not cover unlawful acts or actions “not in the best interest of the city,” and the city would consider such expenses on a case‑by‑case basis.
Board members asked whether the policy would increase insurance costs and whether a monetary cap should be included. The city attorney said passage could have cost implications but the resolution is meant to backstop members who are sued in their official capacities and that formal caps or policies could be considered later. The board voted 5–0 to adopt the resolution.
Why it matters: The change means the city may assume legal expenses for elected officials defending official acts when insurance does not apply, which the board said could help ensure public service remains viable without exposing individuals to personal liability in certain cases.
What’s next: The city will implement the resolution on a case-by-case basis; officials discussed obtaining a cost estimate from the insurance carrier but did not delay adoption.
