[HISTORY: Adopted by the Township Committee
of the Township of Hanover 5-8-2003 by Ord. No. 7-2003. Amendments noted where
applicable.]
This chapter 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:
A present or former municipal employee, appointee, official,
elected official or member of the various boards, agencies and commissions
of the Township of Hanover, County of Morris, New Jersey.
A.
The Township of Hanover is hereby authorized to provide
for the defense of actions brought against its officials and to indemnify
such officials to the extent hereinafter set forth and shall save
harmless and protect such persons from any financial loss resulting
from litigation.
B.
The obligation of the Township of Hanover to defend
and indemnify its officials for acts or omissions arising out of or
in the course of the performance of the duties of that person shall
be limited to those circumstances under which the Township itself
would be liable for the acts of its officials under the doctrine of
respondeat superior.
C.
In the event an official or municipal officer is required
to defend an action relating to his position subsequent to leaving
office or municipal employment, the terms, conditions and provisions
of this chapter shall apply.
D.
In the event the official or municipal officer is
being sued for punitive damages, the Township of Hanover shall not
indemnify said official or municipal officer with respect to the same
but shall, to the extent provided herein, defend said official or
municipal officer in said action and defray the costs of said defense.
A.
The Township of Hanover shall defray the costs of
defending any criminal action against any official (if the underlying
allegations of said criminal action reasonably relate to or arise
from the official's execution of his official duties), provided that:
(1)
It is authorized by the state statute, municipal ordinance
or by resolution, and provided that the criminal proceedings have
been dismissed or result in a final disposition in favor of the official.
(2)
The Township Committee determines that there is no
good cause to dismiss the official arising out of the incident or
related incidents of the criminal proceedings.
The Township Committee 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 Township and the official involved.
D.
There exists policies of insurance, either obtained
by the Township 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
Township Committee, within 14 days of the time he or she is served
with any summons, complaint, process, notice, demand or pleading,
the original or a copy of such document or thereafter fails to cooperate
with the Township 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 Township.
If the Township Committee determines to provide
a defense as authorized in this chapter, they may do so by:
A.
The Township Attorney, if the Township Attorney and
the official or municipal officer requiring defense determine that
there is no ethical conflict created by said representation;
B.
Hiring an attorney of its choice and paying the same
directly; or
C.
Reimbursing the municipal official for reasonable
attorney's fees expended or obligated to be expended by such official
in the defense of the action.
In addition to the provisions hereof, all officials
of the Township of Hanover 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 Township shall be calculated as reasonable prevailing
fees as charged in the County of Morris at the time they are incurred,
and the Township 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 Township in defense of an official or municipal officer, as
provided herein, either party may seek review before the Superior
Court of New Jersey, Morris County, for adjudication.