Except as hereinafter provided, the Township of Byram, 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 Township 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 Byram Township Council
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.
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.
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 Byram Township Council 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.