(A)

1. (1) Except as otherwise provided in division (A)(2) of this section, a political subdivision shall provide for the defense of an employee, in any state or federal court, in any civil action or proceeding which contains an allegation for damages for injury, death, or loss to person or property caused by an act or omission of the employee in connection with a governmental or proprietary function. Amounts expended by a political subdivision in the defense of its employees shall be from funds appropriated for this purpose or from proceeds of insurance.

2. (2) A political subdivision does not have the duty to provide for the defense of an employee under division (A)(1) of this section if any of the following apply:

   1. (a) The act or omission occurred while the employee was not acting in good faith.
   2. (b) The act or omission occurred while the employee was acting manifestly outside the scope of the employee's employment or official responsibilities.
   3. (c) The civil action or proceeding is commenced by or on behalf of a political subdivision.

   4. (d) The employee is an employee of a regional council of governments established under Chapter 167. of the Revised Code and both of the following apply:

      1. (i) The employee is not also an employee of a political subdivision that is a member of the council.
      2. (ii) The act or omission, if proven, would constitute a violation of Chapter 102. or Chapter 2921. of the Revised Code.

(B)

1. (1) Except as otherwise provided in division (B) (2) of this section, a political subdivision shall indemnify and hold harmless an employee in the amount of any judgment, other than a judgment for punitive or exemplary damages, that is obtained against the employee in a state or federal court or as a result of a law of a foreign jurisdiction and that is for damages for injury, death, or loss to person or property caused by an act or omission in connection with a governmental or proprietary function.

2. (2) A political subdivision is not required to indemnify and hold harmless an employee under division (B)(1) of this section if any of the following apply:

   1. (a) At the time of the act or omission, the employee was not acting in good faith.
   2. (b) At the time of the act or omission, the employee was not acting within the scope of the employee's employment or official responsibilities.

   3. (c) The employee is an employee of a regional council of governments established under Chapter 167. of the Revised Code and both of the following apply:

      1. (i) The employee is not also an employee of a political subdivision that is a member of the council.
      2. (ii) The act or omission constitutes a violation of Chapter 102. or Chapter 2921. of the Revised Code.

(C)

1. (1) A political subdivision may enter into a consent judgment or settlement and may secure releases from liability for itself or an employee, with respect to any claim for injury, death, or loss to person or property caused by an act or omission in connection with a governmental or proprietary function.
2. (2) No action or appeal of any kind shall be brought by any person, including any employee or a taxpayer, with respect to the decision of a political subdivision pursuant to division (C)(1) of this section whether to enter into a consent judgment or settlement or to secure releases, or concerning the amount and circumstances of a consent judgment or settlement. Amounts expended for any settlement shall be from funds appropriated for this purpose.