Township of Carneys Point, NJ
Salem County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Township Committee of the Township of Carneys Point 1-26-1998 by Ord. No. 622. Amendments noted where applicable.]

§ 8-1 Intent and purpose.

In accordance with the provisions of N.J.S.A. 59:10-1, et seq., the Carneys Point Township Committee, by adoption of this chapter, agrees to provide for the defense of actions against and the indemnification of Township employees against whom civil claims have been made. The scope of the defense and indemnification to be provided pursuant to this chapter shall be as extensive as permitted by law.

§ 8-2 Definitions.

EMPLOYEE — Any official, officer, member of a board, agency or commission of the Township or employee who is authorized by Carneys Point Township to perform any act or service. "Employee," however, shall not include an independent contractor.

§ 8-3 Defense of actions.

Except as provided in § 8-4, the Township shall provide for the defense of any action brought against an employee on account of any act or omission in the scope of his employment. This obligation shall extend to any cross actions, counterclaims or cross complaints against such an employee.

§ 8-4 Exceptions.

The provisions of § 8-3 shall not be applicable when the Township Committee determines that:
A. 
The act or omission was not within the scope of employment;
B. 
The act or failure to act was because of actual fraud, willful misconduct or actual malice;
C. 
The defense of the action or proceeding would create a conflict of interest between the Township and the employee;
D. 
The defense of the action or proceeding is provided for by an insurance policy or policies, whether obtained by the Township or by any other person;
E. 
The employee failed to deliver to the Township Clerk, within 10 calendar days after the time he is served with any summons, complaint, process, notice, demand or pleading, the original or a copy of the same;
F. 
The employee has failed to cooperate fully with the defense;
G. 
The Township has brought the action against the employee; or
H. 
The action is a criminal or disciplinary proceeding.

§ 8-5 Methods of defense.

The Township may provide any defense required of it under this chapter through an attorney from its own staff or by retaining other counsel.

§ 8-6 Township to control representation.

Whenever the Township provides any defense required of it pursuant to this chapter, the Township, through counsel, shall assume exclusive control over the representation of the employee and such employee shall cooperate fully with the defense.

§ 8-7 Indemnification.

A. 
In any case where the Township is required to provide a defense under this chapter, the Township shall pay or shall reimburse the employee for:
(1) 
Any bona fide settlement agreements entered into on behalf of the employee.
(2) 
Any judgments entered against the employee.
(3) 
Exemplary damages and punitive damages resulting from the employee's civil violation of state or federal law if the Carneys Point Township Committee finds that the acts committed by the employee upon which the damages are based did not constitute actual fraud, actual malice, willful misconduct or an intentional act.
B. 
In addition, in any case where the Township would be required to provide a defense under this chapter, except for the fact that such defense is provided for by insurance, the Township shall provide indemnification as aforesaid, but only to the extent not covered by insurance.

§ 8-8 Commission of crimes.

Nothing in this chapter shall authorize the Township to pay for punitive or exemplary damages or damages resulting from the commission of a crime.