It is the intent and purpose of this chapter to provide for the defense
of actions brought against, and the indemnification of, public employees as
may be permitted by N.J.S.A. 59:10-1 et seq. and N.J.S.A. 59:10A-1 et seq.
As used herein, "official," "municipal official" or "employee" shall
mean any person or former municipal employee, official, officer, elected official,
or any member of the various boards, agencies, or commission of the Township
of Lopatcong, County of Warren and State of New Jersey; provided, however,
that the term shall specifically exclude any independent contractor, but is
intended to include any professional staff of the Township who, for the purpose
of this chapter, shall not be regarded as an independent contractor.
The Township Council shall not approve indemnification or 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 exist 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.
E. The municipal official has failed to deliver to the Township
Clerk within 10 days of the time he or she is served with any summons, complaint,
process, notice, demand or pleadings, the original or 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 Council determines to provide a defense as authorized
in this chapter, it may do so by:
A. A member of its Law Department or Township Attorney;
B. Hiring an attorney of its choice and paying the same
directly; and
C. Reimbursing the municipal employee, appointee and official
for reasonable attorney's fees expended or obligated to be expended by
such official in the defense of the act. In no event shall reimbursement of
attorney fees that the Township is obligated to pay exceed the per-dollar
rate paid by the Township to its Municipal Attorney for each year involved
in the defense, as authorized under this chapter.
Whenever the Township shall provide any defense provided for hereunder,
the Township Council, through counsel appointed by the Township, shall assume
exclusive control over the representation of the public official or employee,
and such official or employee shall cooperate fully in the defense of any
action. Where it is impracticable to do so, the attorney representing the
insurance company on behalf of the Township, or such other person or persons
appointed by the Township Council, shall assume exclusive control.