[Adopted 2-19-1985 by Ord. No. 85-1
(Ch. 25, Art. II, of the 1982 Code)]
It is the intent and purpose of this article to provide for the defense
of actions against and the indemnification of public employees as permitted
by N.J.S.A. 59:10-1 et seq.
As used in this article, the following terms shall have the meanings
indicated:
Any officer, employee or servant, whether or not compensated or part-time,
who is authorized to perform any act or service; provided, however, that the
term does not include an independent contractor.
Any employee or former employee of the Borough.
The Borough shall provide for the defense of any action brought against
a public employee arising out of any act or omission in the scope of his employment,
and this obligation shall extend to any cross actions, counterclaims or cross
complaint against such employee.
The provisions provided herein shall not be applicable when the Mayor
and Council determine 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 Borough and the public employee.
D.
The defense of the action or proceeding is provided for
by an insurance policy or policies, whether obtained by the Borough or by
any other person.
E.
The public employee failed to deliver to the Borough
Administrator, 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 public employee has failed to cooperate fully with
the defense.
The Borough may provide any defense required of it under this article
through an attorney from its own staff or by employing other counsel.
Whenever the Borough provides any defense required of it under this
article, the Borough, through counsel, may assume exclusive control over the
representation of the public employee, and such employee shall cooperate fully
with the defense.
A.
In any case where the Borough is required to provide
a defense under this article, the Borough shall pay or shall reimburse the
public employee for the following:
(1)
Any bona fide settlement agreements entered into on behalf
of the employee.
(2)
Any judgments entered against the employee.
(3)
If the Borough has failed to provide such required defense,
all costs of defending the action, including reasonable counsel fees and expenses,
together with costs of any appeal.
B.
In addition, in any case where the Borough would be required
to provide a defense under this article except for the fact that such defense
is provided for by insurance, the Borough shall provide indemnification as
aforesaid, but only to the extent not covered by insurance.
Nothing in this article shall authorize the Borough to pay for punitive
or exemplary damages resulting from the commission of a crime.
This article shall be both prospective and retrospective in its application.
