[HISTORY: Adopted by the Township Committee of the Township of Alexandria 5-13-1992.
Amendments noted where applicable.]
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:
Coverage afforded by insurance policies of every kind whether the
premiums be paid by the municipality, the municipal official or someone on
his or her behalf. The municipality shall not be obligated to carry such insurance.
The Township Committee of the Township of Alexandria or its successor
governing body.
The Township of Alexandria in Hunterdon County, New Jersey.
Any present or former officer, employee, board or committee member
appointed or hired by the municipal governing body, the Mayor or other authorized
official of the municipality, whether full- or part-time. The term shall also
include any person elected by the voters to fill any official position in
the municipality or any person subsequently appointed to fill such position.
Upon compliance with and subject to the provisions of this chapter,
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 or 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 municipality 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 municipal governing body, 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 (N.J.S.A.
59:10-4).
The municipality 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 municipal official has been specifically found
by the trier of fact in any proceeding, civil or criminal, to have acted with
actual fraud, actual malice or willful misconduct, or to have committed a
crime.
C.
Where the legal proceeding or matter is instigated or
brought by the municipality against the municipal official.
D.
Where the legal proceeding involves a question concerning
the election laws.
E.
Where the legal proceeding involves an act or omission
which was not within the scope of the municipal official's powers, duties
or employment.
F.
Where the municipal official is found to have acted in
violation of the Local Government Ethics Law (N.J.S.A. 40A:9-22.1 et seq.)
or the regulations pursuant thereto, or any municipal code of ethics, or any
other applicable ethical standard.
The amount the municipality is obligated to reimburse the municipal
official shall be reduced by any insurance coverage payable to the municipal
official and by the net amount (recovery less attorney 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 or her.
A municipal official shall not be entitled to indemnification or reimbursement
pursuant to this chapter unless, within 10 calendar days of the time he or
she is served with any summons, complaint, process, notice, demand or pleading,
he or she delivers the original or a copy thereof to the Municipal Attorney.
The municipal official shall be obliged to cooperate with the municipality
in the conduct of his or her defense. Whenever competent and disinterested
legal counsel is available to the municipality through any insurance coverage,
the municipal official shall be obliged to be represented by such counsel.
If the municipality wishes to use the Municipal Attorney or the attorney for
any board or committee of the municipality 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 municipality shall terminate the municipality's obligation to
reimburse the municipal official.
If the legal proceeding is terminated by an agreement among the parties,
then the municipality shall not be obligated to reimburse the municipal official
unless the municipality approves the settlement agreement.
If the municipal official files a counteraction in the legal proceedings,
the municipality shall not be obligated to reimburse him or her for any attorney
fees or court cost attributable to such counteraction, and the attorney designated
by the municipality shall not be required to prosecute it unless it has been
authorized by the municipality.
The municipality may reimburse a municipal official for a portion of
expenses incurred prior to a final decision in a legal proceeding, but the
municipality shall be entitled to wait for a final determination before being
obligated to make any payments.
