Except as hereinafter provided, the Borough of Swedesboro, hereinafter
known as "the Borough," shall, upon the request of any present or
former official, employee or appointee of the Borough, 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.
Pursuant to N.J.S.A. 59:10-4, the indemnification and defense
provided for in this chapter shall include exemplary or punitive damages
resulting from the employee's civil violation of state or federal
law if, in the opinion of the Borough of Swedesboro, the acts committed
upon which the damages are based did not constitute actual fraud,
actual malice, willful misconduct or an intentional wrong.
The terms of this chapter and the definitions 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 any person who is not a natural person; any person
while providing goods or services of any kind under any contract with
the Borough except an employment contract; any person while providing
legal or engineering services for compensation unless said person
is a full-time employee of the Borough; and any person who, as a condition
of his or her appointment or contract, is required to indemnify and
defend the Borough and/or secure insurance.
The Borough shall provide for defense of and indemnify any present
or former official, employee or appointee of the Borough who becomes
a defendant in a civil action if the person or persons involved acted
or failed to act in a matter in which the Borough has or had an interest;
acted or failed to act in the discharge of a duty imposed or authorized
by law; and acted or failed to take action in good faith. For purposes
of this chapter, the duty and authority of the Borough to defend and
indemnify shall extend to a cross-claim or counterclaim against said
person.
In any other action or proceeding, including criminal proceedings,
the Borough may provide for the defense of a present or former official,
employee or appointee, if the Borough of Swedesboro concludes that
such representation is in the best interest of the Borough and that
the person to be defended acted or failed to act in accord with the
standards set forth in this chapter.
Whenever the Borough provides for the defense of any action
set forth herein and as a condition of such defense, the Borough may
assume exclusive control over the representation of such persons defended
and such person shall cooperate fully with the Borough.
The Borough 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 Borough under any appropriate insurance policy that requires
the insurer to provide defense.