City of Linwood, NJ
Atlantic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Common Council of the City of Linwood 3-8-2000 by Ord. No. 3-2000. Amendments noted where applicable.]

§ 14-1 Definitions.

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:
INSURANCE
Coverage afforded by insurance policies of every kind, whether the premiums are paid by the City, the municipal official or someone on his behalf.
MUNICIPAL OFFICIAL
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.

§ 14-2 Indemnification.

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.

§ 14-3 Exceptions.

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.

§ 14-4 Reduction of reimbursement.

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.

§ 14-5 Notification and cooperation required.

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.

§ 14-6 Approval of settlement.

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.

§ 14-7 Costs attributable to counteraction.

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.

§ 14-8 Time of payment.

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.