An appeals court has ruled summary judgment was granted prematurely in the case of a municipality that revoked its promise to indemnify a lawyer in connection with town-related litigation.
A material issue of fact remains as to whether the case that prompted the lawsuit fell within the scope of the lawyer’s employment contract, the appeals court said in Madden & Madden P.A. v. Scharff. In addition, the case was not ripe for summary judgment because the township’s resolution revoking indemnification of the attorney may have been ultra vires if the mayor retained the lawyer’s services based on an oral contract that was not approved by the entire governing body, the appeals court said in its decision Monday.
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