[HISTORY: Adopted by the Township Committee
of the Township of Oldmans 4-7-2004 by Ord. No. 2004-4. Amendments noted where
applicable.]
Except as hereinafter provided, the Oldmans
Township Committee, hereinafter known as the "Township" shall, upon
the request of any present or former official, employee or appointee
of the Township provide for indemnification and legal defense of any
civil action brought against said person or persons arising from an
act or omission falling within the scope of their public duties.
The terms of this chapter and the definition
of official, employee and appointee are to be construed liberally
in order to effectuate the purposes of this chapter except that these
terms shall not mean: a) any person who is not a natural person; b)
any person while providing goods or services of any kind under any
contract with the Township except an employment contract; c) any person
while providing legal or engineering services for compensation unless
said person is a full-time employee of the Township; and d) any person
who as a condition of his or her appointment or contract is required
to indemnify and defend the Township and/or secure insurance.
The Township Committee shall provide for defense
of and indemnify any present or former official, employee or appointee
of the Township who becomes a defendant in a civil action if the person
or persons involved: a) acted or failed to act in a matter in which
the Township has or had an interest; b) acted or failed to act in
the discharge of a duty imposed or authorized by law; and c) acted
or failed to take action in good faith. For purposes of this chapter,
the duty and authority of the Township Committee to defend and indemnify
shall extend to a cross-claim or counterclaim against said person.
The Township Committee shall not indemnify any
person against the payment of punitive damages, penalties, or fines,
but may provide for the legal defense of such claims in accord with
the standards set forth herein. The Township may refuse to provide
for the defense and indemnification of any civil action referred to
herein if the Township Committee determines that: a) the act or omission
did not occur within the scope of a duty authorized or imposed by
law; b) the act or failure to act was the result of actual fraud,
willful misconduct or actual malice of the person requesting defense
and indemnification; or c) the defense of the action or proceeding
by the Township would create a conflict of interest between the Township
and the person or persons involved.
In any other action or proceeding, including
criminal proceedings, the Township may provide for the defense of
a present or former official, employee or appointee, if the Township
Committee concludes that such representation is in the best interest
of the Township and that the person to be defended acted or failed
to act in accord with the standards set forth in this chapter.
Whenever the Township provides for the defense
of any action set forth herein and as a condition of such defense,
the Township may assume exclusive control over the representation
of such persons defended and such person shall cooperate fully with
the Township.
The Township may provide for the defense pursuant
to this chapter by authorizing its attorney to act in behalf of the
person being defended or by employing other counsel for this purpose
or by asserting the right of the Township under any appropriate insurance
policy that requires the insurer to provide defense.
