This section shall hereafter be known and cited as the "Indemnification
of Municipal Employees, Appointees and Officials."
As used in this chapter, the following terms shall have the meanings
indicated:
OFFICIAL or MUNICIPAL OFFICER
A present or former municipal employee, appointee, official, elected
official or member of the various boards, agencies and commissions of the
Borough of Fair Lawn, Bergen County, New Jersey.
The Mayor and Council shall not approve indemnification of the defense
of any action if:
A. The act or omission complained of was not within the
scope of employment or authority.
B. The act or omission complained of 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 borough and the official involved.
D. There exists policies of insurance, either obtained by
the borough or by another by virtue of which the municipal official is entitled
to a defense of the action in question from the insurer. In the event the
aforesaid insurance covers less than an entire defense to the particular action,
indemnification shall be approved for that part of the defense not covered
by insurance.
E. The municipal official has failed to deliver to the Mayor
and Council, within 14 days of the time he or she is served with any summons,
complaint, process, notice, demand or pleading, the original or copy of such
document or thereafter fails to cooperate with the borough in the defense
of the matter.
F. The official fails to request the defense of any action.
G. If the action was brought by the borough.
In addition to the provisions hereof, all officials of the borough shall
be entitled to defense and indemnification as provided in N.J.S.A. 59:10-1
et seq. and N.J.S.A, 59:10A-1 et seq.
All costs of defense and legal fees to be provided herein by the borough
shall be calculated as reasonable prevailing fees as charged in the County
of Bergen at the time they are incurred, and the borough shall only be responsible
to that extent. In the event of a dispute as to the reasonableness of any
fee to be paid by the borough in defense of an official or municipal officer,
as provided herein, either party may seek review before the Superior Court
of New Jersey, Bergen County, for adjudication.