[HISTORY: Adopted by the Borough Council of the Borough of Hillsdale 2-10-2004
by Ord. No. 04-02.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Officers and employees — See Ch. 51.
[1]
Editor's Note: This chapter superseded former Ch. 21, Defense
and Indemnification, adopted 9-9-1986 by Ord. No. 86-15 (Ch. 2, Art. 20, of
the Revised Ordinances of 1972), as amended.
Except as hereinafter provided, the Borough of Hillsdale, hereinafter
known as the "Borough," shall, upon the request of any present or former official,
employee or appointee of the Borough, provide for the indemnification and
legal defense of any civil action brought against said person or persons arising
from an act or omission falling within the scope of their public duties.
The terms of this chapter and the definition of "official," "employee"
and "appointee" are to be construed liberally in order to effectuate the purposes
of this chapter except that these terms shall not mean any person who is not
a natural person; any person while providing goods or services of any kind
under any contract with the Borough except an employment contract; any person
while providing legal or engineering services for compensation unless said
person is a full-time employee of the Borough; and any person who, as a condition
of his or her appointment or contract, is required to indemnify and defend
the Borough and/or secure insurance.
The Borough shall provide for defense of and indemnify any present or
former official, employee or appointee of the Borough who becomes a defendant
in a civil action if the person or persons involved acted or failed to act
in a matter in which the Borough has or had an interest; acted or failed to
act in the discharge of a duty imposed or authorized by law; and acted or
failed to take action in good faith. For purposes of this chapter, the duty
and authority of the Borough to defend and indemnify shall extend to a cross-claim
or counterclaim against said person.
The Borough shall not indemnify any person against the payment of punitive
damages, penalties, or fines, but may provide for the legal defense of such
claims in accord with the standards set forth herein. The Borough may refuse
to provide for the defense and indemnification of any civil action referred
to herein if the Borough Council determines that the act or omission did not
occur within the scope of a duty authorized or imposed by law; the act or
failure to act was the result of actual fraud, willful misconduct or actual
malice of the person requesting defense and indemnification; or the defense
of the action or proceeding by the Borough would create a conflict of interest
between the Borough and the person or persons involved.
In any other action or proceeding, including criminal proceedings, the
Borough may provide for the defense of a present or former official, employee
or appointee, if the Borough Council concludes that such representation is
in the best interest of the Borough and that the person to be defended acted
or failed to act in accord with the standards set forth in this chapter.
Whenever the Borough provides for the defense of any action set forth
herein and, as a condition of such defense, the Borough may assume exclusive
control over the representation of such persons defended, and such person
shall cooperate fully with the Borough.
The Borough may provide for the defense pursuant to this chapter by
authorizing its attorney to act in behalf of the person being defended or
by employing other counsel for this purpose or by asserting the right of the
Borough under any appropriate insurance policy that requires the insurer to
provide defense.