[HISTORY: Adopted by the Mayor and Council of the Town of Clinton
9-9-1986 by Ord. No. 86-13. Amendments noted where applicable.]
GENERAL REFERENCES
Administration — See Ch. 4.
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 be paid by the town, the municipal official or someone on his behalf.
Any officer, employee, board or committee member appointed or hired
by the Mayor or Town Council of the Town of Clinton, whether full- or part-time.
The term shall also include any person elected by the voters of the Town of
Clinton to fill any official position in the town, or any person subsequently
appointed to fill such position.
Subject to the provisions of this chapter, the Town of Clinton shall
reimburse a municipal official for all expenses incurred (specifically including
reasonable attorney fees and court costs) and all monetary judgments (excluding
punitive damages) 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 town 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 Town of Clinton against the municipal official.
D.
Where the legal proceeding involves a question concerning
the election laws.
The amount the town is obliged to reimburse the municipal official shall
be reduced by any insurance coverage payable to the municipal official by
the net amount (recovery less attorney 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 Municipal Attorney. The municipal
official shall be obliged to cooperate with the town in the conduct of his
defense. Whenever competent and disinterested legal counsel is available to
the town through any insurance coverage, the municipal official shall be obliged
to be represented by such counsel. If the town wishes to use the Municipal
Attorney, or the attorney for any board or committee of the town 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 town shall terminate the town's obligation
to reimburse the municipal official.
If the legal proceeding is terminated by an agreement amongst the parties,
then the town shall not be obligated to reimburse the municipal official unless
the town approves the settlement agreement.
If the municipal official files a counteraction in the legal proceedings,
the town shall not be obligated to reimburse him for any attorney fees or
court costs attributable to such counteraction.
The town may reimburse a municipal official for a portion of expenses
incurred prior to a final decision in a legal proceeding, but the town shall
be entitled to wait for a final determination before being obligated to make
any payments.
To the extent N.J.S.A. 40A:14-155 provides broader indemnification to
members of the Town of Clinton's Police Department, that statute shall supersede
this chapter.
This chapter shall take effect upon final passage and publication according
to law. Any legal action which may be covered by this chapter which has not
been reduced to a final judgment as of the date of passage shall be covered
by the terms of this chapter.
