KRS 65.2005: Defense of employee by local government -- Liability of employee.

(1) A local government shall provide for the defense of any employee by an attorney

chosen by the local government in any action in tort arising out of an act or

omission occurring within the scope of his employment of which it has been given

notice pursuant to subsection (2) of this section. The local government shall pay any

judgment based thereon or any compromise or settlement of the action except as

provided in subsection (3) of this section and except that a local government's

responsibility under this se ction to indemnify an employee shall be subject to the

limitations contained in KRS 65.2002.

(2) Upon receiving service of a summons and complaint in any action in tort brought

against him, an employee shall, within ten (10) days of receipt of service, giv e

written notice of such action in tort to the executive authority of the local

government.

(3) A local government may refuse to pay a judgment or settlement in any action

against an employee, or if a local government pays any claim or judgment against

any employee pursuant to subsection (1) of this section, it may recover from such

employee the amount of such payment and the costs to defend if:

(a) The employee acted or failed to act because of fraud, malice, or corruption;

(b) The action was outside the actual or apparent scope of his employment;

(c) The employee willfully failed or refused to assist the defense of the cause of

action, including the failure to give notice to the executive authority of the

local government pursuant to subsection (2) of this section;

(d) The employee compromised or settled the claim without the approval of the

governing body of the local government; or

(e) The employee obtained private counsel without the consent of the local

government, in which case, the local government ma y also refuse to pay any

legal fees incurred by the employee.