[HISTORY: Adopted by the Common Council of the City of Linwood 3-8-2000
by Ord. No. 3-2000. Amendments noted where applicable.]
For the purposes of this chapter, unless the context clearly indicates
a different meaning, the following words and phrases shall have the meanings
set forth:
Coverage afforded by insurance policies of every kind, whether the
premiums are paid by the City, the municipal official or someone on his behalf.
Any officer, employee, board or committee member appointed or hired
by the Mayor or City Council of the City of Linwood, whether full- or part-time.
The term shall also include any person elected by the voters of the City of
Linwood to fill any official position in the City or any person subsequently
appointed to fill such position.
Subject to the provision of this chapter, the City of Linwood shall
reimburse a municipal official for all expenses incurred (specifically including
reasonable attorneys fees and court costs) and all monetary judgments imposed
upon him in any action or legal proceeding of a noncriminal nature arising
out of or incidental to the performance of the duties of the position or office
held by such municipal official. The City shall indemnify a municipal official
for exemplary or punitive damages resulting from the municipal official's
civil violation of state or federal law if, in the opinion of the City Council,
the acts committed by the municipal official upon which the damages are based
did not constitute actual fraud, actual malice, willful misconduct or an intentional
wrong.
The City shall not be obligated to provide reimbursement in the following
instances:
A.
Where the legal proceeding is instigated or brought by
the municipal official.
B.
Where the legal proceeding involves a claim of misfeasance
or malfeasance in office or a claim of fraud, theft or misappropriation of
public funds and the municipal official is found liable for the charge.
C.
Where the legal proceeding is instigated or brought by
the City of Linwood against the municipal official.
D.
Where the legal proceeding involves a question concerning
the election laws.
The amount the City is obliged to reimburse the municipal official shall
be reduced by any insurance coverage payable to the municipal official and
by the net amount (recovery less attorneys fees, disbursements and court costs)
of any money received by the municipal official in any counteraction against
the person or persons bringing the action against him.
A municipal official shall not be entitled to indemnification or reimbursement
pursuant to this chapter unless, within 10 calendar days of the time he is
served with any summons, complaint, process, notice, demand or pleading, he
delivers the original or a copy thereof to the City Solicitor. The municipal
official shall be obliged to cooperate with the City in the conduct of his
defense. Whenever competent and disinterested legal counsel is available to
the City through any insurance coverage, the municipal official shall be obliged
to be represented by such counsel. If the City wishes to use the City Solicitor
or the attorney for any board or committee of the City to defend the action,
the municipal official shall be obligated to be represented by that attorney
unless there is a conflict of interest. The refusal of the municipal official
to cooperate with the City shall terminate the City's obligation to reimburse
the municipal official.
If the legal proceeding is terminated by an agreement among the parties,
then the City shall not be obligated to reimburse the municipal official unless
the City approves the settlement agreement.
If the municipal official files a counteraction in the legal proceedings,
the City shall not be obligated to reimburse him for any attorney fees or
court costs attributable to such counteraction.
The City may reimburse a municipal official for a portion of expenses
incurred prior to a final decision in a legal proceeding, but the City shall
be entitled to wait for a final determination before being obligated to make
any payments.
