[HISTORY: Adopted by the Township Committee of the Township
of Morris 12-6-1989 by Ord. No. 26-89 (Ch. 11B of the 1969 Code). Amendments
noted where applicable.]
For the purposes of this chapter, unless the context clearly
indicates a different meaning, the following words and phrases shall
have the meanings set forth:
Coverage afforded by insurance policies of every kind, whether
the premiums be paid by the Township, the municipal official or someone
on his behalf.
Any officer or employee or board or committee member appointed
or hired by the Mayor, Township Committee or Township Administrator,
whether full- or part-time. The term shall also include any person
elected by the voters to fill any official position in the Township
or any person subsequently appointed to fill such position.
Subject to the provisions of this chapter, the municipality
shall reimburse a municipal official for all reasonable and necessary
expenses incurred (specifically including reasonable attorneys'
fees and court costs) and all monetary judgments imposed upon him
in any action or legal proceeding of a noncriminal nature arising
out of or incidental to the performance of the duties of the position
or office held by such municipal official. The Township shall indemnify
a municipal official for exemplary or punitive damages resulting from
the municipal official's civil violation of state or federal
law if, in the opinion of the Township Committee, the acts committed
by the municipal official upon which the damages are based did not
constitute actual fraud, actual malice, willful misconduct or an intentional
wrong.
The Township shall not be obligated to provide reimbursement
in the following instances:
A.
Where the legal proceeding is instigated or brought by the municipal
official.
B.
Where the legal proceeding involves a claim of misfeasance or malfeasance
in office or a claim of fraud, theft or misappropriation of public
funds and the municipal official is found liable for the charge.
C.
Where the legal proceeding is instigated or brought by the municipality
against the municipal official.
D.
Where the legal proceeding involves a question concerning the election
laws.
The amount the Township is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official or by the net amount (recovery less attorneys'
fees, disbursements and court costs) of any money received by the
municipal official in any counteraction against the person or persons
bringing the action against him.
A municipal official shall not be entitled to indemnification
or reimbursement pursuant to this chapter unless, within 10 calendar
days of the time he is served with any summons, complaint, process,
notice, demand or pleading, he delivers the original or a copy thereof
to the Township Attorney. The municipal official shall be obliged
to cooperate with the Township in the conduct of his defense. Whenever
competent and disinterested legal counsel is available to the Township
through any insurance coverage, the municipal official shall be obliged
to be represented by such counsel. If the Township wishes to use the
Township Attorney or the attorney for any board or committee of the
Township to defend the action, the municipal official shall be obligated
to be represented by that attorney unless there is a conflict of interest.
The refusal of the municipal official to cooperate with the Township
shall terminate the Township's obligation to reimburse the municipal
official.
If the legal proceeding is terminated by an agreement among
the parties, then the Township shall not be obligated to reimburse
the municipal official unless the Township approves the settlement
agreement.
If the municipal official files a counteraction in the legal
proceedings, the municipality shall not be obligated to reimburse
him for any attorneys' fees or court costs attributable to such
counteraction.
The Township may reimburse a municipal official for a portion
of expenses incurred prior to a final decision in a legal proceeding,
but the Township shall be entitled to wait for a final determination
before being obligated to make any payments.
To the extent N.J.S.A. 40A:14-155 provides broader indemnification
to members of the municipality's Police Department, that statute
shall supersede this chapter.
This chapter shall take effect upon final passage and publication
according to law. Any legal action which may be covered by this chapter
which has not been reduced to a final judgement as of the date of
passage shall be covered by the terms of this chapter.
