delivered the opinion of the court:
Plaintiffs, Ernie A. Cox, Jerome D. Brown, and Raymond T. Randall, former commissioners of the City of Danville, Kevin Scharlau, as executor of the estate of former commissioner Wilbur Scharlau, and Wendell Wright, former corporation counsel, filed a complaint seeking reimbursement from the city of attorney fees and litigation expenses incurred in defending the criminal prosecution of the commissioners and corporation counsel. The circuit court of Vermilion County found that indemnity was not warranted and dismissed the complaint under sections 2 — 615 and 2 — 619 of the Code of Civil Procedure (735 ILCS 5/2 — 615, 2 — 619 (West 1994)). The appellate court reversed, holding that genuine issues of material fact existed which precluded judgment as a matter of law for the city.
BACKGROUND
The present appeal arises out of attempts by plaintiffs to recover attorney fees and litigation expenses incurred by the former commissioners and corporation counsel in their defense of criminal charges of official misconduct and conflict of interest. The criminal prosecutions resulted from the manner in which the group negotiated the settlement of a lawsuit filed against the commissioners and the city.
In January 1987, a group of African-American residents of Danville filed a lawsuit in federal district court against the city and its commissioners alleging that the nonpartisan, at-large, citywide process for electing commissioners excluded African-American representation and diluted minority voting strength, thereby violating the Voting Rights Act of 1965 (42 U.S.C. § 1973b (1982 & Supp. V 1987)). The commissioners and corporation counsel negotiated a proposed settlement of the voting rights lawsuit which would change the form of government from a mayor-commissioner system to a mayor-alderman system with aldermen elected from seven two-member districts. The settlement also provided that the present commissioners would be appointed as administrators of the various departments that corresponded with their current respective commission duties. These newly created administrative positions would be guaranteed for a minimum of three years at salaries the commissioners would set themselves.
The Vermilion County State’s Attorney, arguing that the proposed settlement was a conflict of interest, issued subpoenas for the commissioners and corporation counsel to appear before the grand jury. The federal district court enjoined the grand jury proceedings and added the State’s Attorney to the proceedings before it. Subsequently, the federal district court held hearings on the proposed settlement. These hearings revealed that the commissioners and the corporation counsel knew that they could not prevail in the voting rights litigation. The commissioners contended, however, that they needed to stay in office for a period of time after the new aldermen were elected in order to ensure a smooth transition into the new system of government. The federal district court approved and entered the consent decree settling the voting rights suit and dissolved the injunction against the State’s Attorney.
Less than two weeks later, the commissioners enacted a new indemnity ordinance. The ordinance, suggested by the corporation counsel, added indemnification for city appointees, which included the positions of corporation counsel and the new department administrators. In addition to civil indemnity, the ordinance provided indemnity for criminal actions if the person seeking indemnity had no reasonable cause to believe his conduct was unlawful and the act or omission was within the scope of the office or employment.
Soon thereafter, the State’s Attorney reconvened the grand jury. At the grand jury proceedings, the commissioners testified that they would receive personal benefits under the federal consent decree and that they would never have agreed to the settlement without the retention provisions. In addition, the corporation counsel testified that the group felt that they were being asked to sacrifice their personal positions and that "if they were going to give up something, they were entitled to something in return.” Subsequently, the grand jury returned an eight-count indictment against the commissioners and corporation counsel charging official misconduct and conflict of interest.
The federal district court again enjoined the state prosecution on the grounds that it had previously resolved the issue of the commissioners’ and corporation counsel’s criminal liability. However, the federal court of appeals reversed, finding that the district court had only determined that the city had the power to enter into the decree, and not that the negotiation process was lawful. Derrickson v. City of Danville,
Subsequently, the group stood trial in the circuit court of Vermilion County on the criminal charges of violating conflict of interest (Ill. Rev. Stat. 1989, ch. 24, par. 3 — 14—4; ch. 102, par. 3) and official misconduct (Ill. Rev. Stat. 1989, ch. 38, par. 33 — 3) statutes. During the bench trial, the commissioners and corporation counsel admitted that they had no right to require that they retain their jobs as a condition of settling the voting rights litigation and that they were not legally entitled to retention. The circuit court found all of the commissioners and the corporation counsel guilty of official misconduct (Ill. Rev. Stat. 1989, ch. 38, par. 33— 3(c)) and violating the prohibitions against municipal officials holding pecuniary interests in governmental contracts (Ill. Rev. Stat. 1989, ch. 24, par. 3 — 14—4(a); ch. 102, par. 3(a)). The commissioners were each sentenced to two years’ conditional discharge and fined $1,000. The corporation counsel was sentenced to two years’ conditional discharge, 90 days’ imprisonment, and fined $5,000.
While the appeal of their convictions was still pending before the appellate court, Commissioner Wilbur Scharlau died. The appellate court abated all proceedings against Scharlau ab initio and vacated his conviction. Subsequently, the appellate court reversed the convictions (People v. Scharlau,
The present appeal arises out of plaintiffs’ two-count complaint filed in the circuit court of Vermilion County seeking reimbursement of the attorney fees and litigation expenses, but not criminal fines, from the city. The complaint was based on two Danville indemnity ordinances, number 7192 (Danville, Ill., Ordinance No. 7192 (eff. July 8, 1986)) and number 7237 (Danville, Ill., Ordinance No. 7237 (eff. March 10, 1987)) (count I), and on common law indemnity (count II). The pertinent ordinance was passed by the commissioners subsequent to the entry of the consent decree in federal district court. The relevant language from the ordinance follows:
"Where the Mayor, member of the City Council, or any appointee of the Mayor or any member of the City Council, has acted in his official capacity, the City shall indemnify the Mayor, member of City Council, or any appointee of the Mayor or member of the City Council who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding by reason of the fact that the person is or was the Mayor, member of the City Council, or any appointee of the Mayor or any member of the City Council, of the city. Under this indemnification, the city shall pay all expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the city. Such indemnification by the city shall apply to any criminal action or proceeding, if the indemnified person had no reasonable cause to believe his conduct was unlawful, and any act or omission within the scope of the office or employment.” Danville, Ill., Ordinance No. 7237 (eff. March 10, 1987).
The city subsequently filed a combined motion to dismiss pursuant to sections 2 — 615 and 2 — 619(a)(9) of the Code of Civil Procedure (735 ILCS 5/2 — 615, 2 — 619(a)(9) (West 1994)). In support of its motion, the city submitted certified copies of the trial court’s findings in the criminal prosecution of the commissioners and corporation counsel and this court’s opinion affirming the criminal convictions. The circuit court, finding no basis for indemnity under either the ordinances or common law indemnity, granted the city’s motion to dismiss. The circuit court also observed that the commissioners’ act of amending the ordinance to provide additional indemnity "tainted the circumstances in such a way” that indemnity was improper. The appellate court reversed.
The city argues before this court that the appellate court must be reversed and the trial court’s dismissal of the action affirmed because (1) Danville’s indemnity ordinance is invalid as against the public policy which prohibits the indemnification of expenses arising from one’s own willful misconduct; (2) the doctrine of collateral estoppel precludes plaintiffs from relitigating the issue of scope of employment which was determined by the commissioners’ and corporation counsel’s criminal convictions; and (3) plaintiffs cannot recover under a theory of common law indemnity because they are the ones who engaged in wrongful conduct.
ANALYSIS
The question presented by a motion to dismiss pursuant to section 2 — 615 is whether sufficient facts are contained in the pleadings which, if established, would entitle the plaintiff to relief. Urbaitis v. Commonwealth Edison,
I. Validity of the Indemnity Ordinance
The city contends that plaintiffs cannot recover under the indemnity ordinance because it is invalid as against public policy. In support of this argument, the city cites cases for the general proposition that agreements to indemnify against one’s own willful misconduct are contrary to public policy and thus unenforceable. See, e.g., Davis v. Commonwealth Edison Co.,
However, even if the indemnity ordinance does not violate public policy, public policy is not the only limitation a local public entity encounters when it determines how to expend its public funds. The expenditure of public funds must be for a public purpose. Ill. Const. 1970, art. VIII, § 1; see also Elsenau v. City of Chicago,
Plaintiffs assert that the indemnity ordinance was enacted for a public purpose and to benefit the city. Although a legislative body may have broad discretion in determining what constitutes a public purpose (People ex rel. City of Salem v. McMackin,
Plaintiffs cite City of Montgomery v. Collins,
Although plaintiffs are correct in their assertion that courts in some jurisdictions have determined that defending a public official from criminal charges may be a proper public purpose, it is generally held in these jurisdictions that a valid public purpose exists only when the authority of the municipality is limited to the reimbursement of legal expenses incurred in a successful defense. See Lomelo v. City of Sunrise,
Further, the purpose of indemnification, so as not to inhibit capable individuals from seeking public office, has no relevance in the context of the criminal conduct involved in this case. No official of public government should be encouraged to engage in criminal acts by the assurance that he will be able to pass defense costs on to the taxpayers of the community he was elected to serve. See Powers v. Union City Board of Education,
Our holding is also compatible with the articulated purpose of the official misconduct and conflict of interest statutes, which is to keep the loyalties of public officials to their public trust undivided and to compel them to act in a lawful manner while acting in their official capacities. Fellhauer v. City of Geneva,
II. Scope of Employment
In the event that the public purpose doctrine did not prevent reimbursement of plaintiffs for their criminal litigation expenses, plaintiffs still could not recover under the ordinance or any statute because the commissioners’ and corporation counsel’s actions, as a matter of law, were outside the scope of their employment. We disagree with the appellate court’s determination that scope of employment is not a real issue in the case. Acting within the scope of their office or employment is a prerequisite for plaintiffs to receive indemnity under the specific terms of the ordinance. Danville, Ill., Ordinance No. 7237 (eff. March 10, 1987). Moreover, a statutory requirement for any indemnification of employees of local public entities is that the underlying act occurred within the scope of employment. 745 ILCS 10/ 2 — 302, 9 — 102 (West 1994). Finally, under a traditional respondeat superior analysis, an employer can be liable for the torts of his employee, however, only for those torts that are committed within the scope of that employment. See Pyne v. Witmer,
While even the criminal acts of an employee may fall within the scope of employment (see, e.g., Webb v. Jewel Cos.,
We recognize that this case does not involve the circumstances typically present in a traditional respondeat superior analysis — when an injured third party attempts to hold an employer vicariously liable for the torts of an employee. Nevertheless, the principles advanced in the context of imposing vicarious liability upon an employer are applicable in cases seeking to impose duties upon a public entity to indemnify and defend its employees because both liabilities are premised upon employee acts occurring within the scope of employment. See Deloney v. Board of Education,
Additionally, the group’s actions, which resulted in their convictions of official misconduct and conflict of interest charges, were clearly committed for their own interests. A conviction for corrupt practices establishes that a public official exploited his fiduciary position for his personal benefit. City of Chicago ex rel. Cohen v. Keane,
While the commissioners’ and corporation counsel’s public employment provided the opportunity for their misconduct, by no stretch of the imagination could their actions be deemed an extension of their legitimate functions as elected officials. Therefore, their conduct neither arose out of nor was incidental to the performance of their duties and, thus, was not within the scope of their employment. See Bowling v. Brown,
III. Collateral Estoppel
The city also contends that inherent in the commissioners’ and corporation counsel’s criminal convictions is the determination that they also acted outside the scope of their employment. The city then reasons that the doctrine of collateral estoppel thus bars plaintiffs from relitigating the scope of employment issue in this case. Plaintiffs respond that scope of employment was not an issue decided in People v. Scharlau. Alternatively, plaintiff Kevin Scharlau independently argues that he cannot be bound by any determinations made in People v. Scharlau because Wilbur Scharlau’s conviction was vacated.
Notwithstanding these contentions, we determined today that, as a matter of law, by virtue of their criminal convictions the commissioners and corporation counsel acted outside the scope of their employment. Furthermore, we determined that the public purpose doctrine prevents reimbursement of plaintiffs in this instance. Therefore, we need not address whether People v. Scharlau decided the scope of employment issue or the effect of collateral estoppel upon this litigation.
IV. Common Law Indemnity
Plaintiffs also contend that they are entitled to reimbursement of their legal expenses under a common law theory of indemnity. They cite cases for the general proposition that a principal is required to indemnify an agent for losses resulting from the good-faith execution of the agency. See Lundy v. Whiting Corp.,
The other cases offered by plaintiffs stand for the propositions that a public official acting pursuant to authority, within the scope of employment, and while serving a public purpose may be indemnified by a municipality for expenses he incurs. See Lomelo,
CONCLUSION
For the foregoing reasons, the judgment of the appellate court is reversed. The judgment of the circuit court dismissing the complaint is affirmed.
Appellate court judgment reversed; circuit court judgment affirmed.
CHIEF JUSTICE BILANDIC took no part in the consideration or decision of this case.
