[Adopted 9-5-1989 by Ord. No. 6:50-89]
For the purposes of this article, unless the
context clearly indicates a different meaning, the following words
and phrases shall have the meaning set forth:
Coverage afforded by insurance policies of every kind, whether
the premiums be paid by the township, the municipal official or someone
on his behalf.
Any officer, employee, Board or Township Council member appointed
or hired by the Mayor, Township Council or Township Administrator,
whether full-time or part-time. The term shall also include any person
elected by the voters to fill any official position in the township,
or any person subsequently appointed to fill such position.
Subject to the provisions of this article, the
municipality shall reimburse a municipal official for all expenses
incurred (specifically including reasonable attorney fees and court
costs) and all monetary judgments imposed upon him/her 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 township 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 Township 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 township 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 municipality against the municipal official.
D.
Where the legal proceeding involves a question concerning
the election laws, unless the municipal official is acting within
his or her official capacity.
The amount the township 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 a counteraction against the person or
persons bringing the action against him/her.
A municipal official shall not be entitled to
indemnification or reimbursement pursuant to this article unless,
within 10 calendar days of the time he/she is served with any summons,
complaint, process, notice, demand or pleading, he/she delivers the
original or a copy thereof to the Township Attorney.
The municipal official shall be obliged to cooperate
with the township in the conduct of his defense. Whenever competent
and disinterested legal counsel is available to the township through
any insurance coverage, the municipal official shall be obliged to
be represented by such counsel. If the township wishes to use the
Township Attorney or the attorney for any board or committee of the
township 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 township
shall terminate the township's obligation to reimburse the municipal
official.
If the legal proceeding is terminated by an
agreement among the parties, then the township shall not be obligated
to reimburse the municipal official unless the township approves the
settlement agreement.
If the municipal official files a counteraction
in the legal proceedings, the municipality shall not be obligated
to reimburse him/her for any attorney fees or court costs attributable
to such counteraction.
The township may reimburse a municipal official
for a portion of expenses incurred prior to a final decision in a
legal proceeding, but the township shall be entitled to wait for a
final determination before being obligated to make any payments.
