[HISTORY: Adopted by the Township Council of the Township of Mount Laurel 4-18-1983 as Ord. No. 1983-13. Amendments noted where applicable.]
Pursuant to N.J.S.A. 59:10-4, the Township of Mount Laurel does hereby authorize indemnification of any person now or in the future holding any office, position or employment, elective or appointive, hereafter referred to as an "employee."
The township, upon request, shall provide for the defense of any action, suit or proceeding, commenced or threatened, whether civil, criminal, administrative or investigative, including a cross action, counterclaim or cross complaint, against any employee on account of any act or omission in the scope of his employment and shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, provided that the act or the failure to act does not arise out of actual fraud, willful misconduct or actual malice.
[Amended 8-15-1983 by Ord. No. 1983-23]
The township shall indemnify and save harmless each employee from financial loss resulting from any action described above in this chapter, including claims, losses, expenses, judgments, fines, attorney fees, court costs and expert or technical witness fees and any amount paid in settlement thereof and actually and reasonably incurred in connection therewith, to the extent permitted by law. Expenses thus incurred may be paid in advance of final disposition of the action. Nothing herein shall authorize the township to pay for damages resulting from the commission of a crime. However, the township is required to indemnify and save harmless each employee from financial loss resulting from any action described above, including punitive or exemplary damages.
As used in this chapter, the following terms shall have the meanings indicated:
- A. Shall apply to all employees irrespective of the number of hours worked per week.
- B. Shall include each such person, whether or not such person holds a professional license or certificate, being paid a fixed salary or hourly rate for the performance of his duties, but shall not include any person furnishing professional or extraordinary unspecifiable services under separate appointment, retainer, agreement or contract.
- C. Shall include persons formerly holding office or employment, provided that the events giving rise to a cause of action or claim hereunder occur after the effective date of this chapter.
The township may employ legal counsel and expert or technical personnel to provide a defense, pursuant to this chapter, and may purchase appropriate insurance as protection against any liability arising under this chapter.
An employee shall not be entitled to indemnification or the cost of defense under this chapter unless, within 10 days of the time such employee is served with any summons, order to show cause, complaint, process, notice, demand or pleading, he delivers the same or a copy thereof to the Township Clerk to forthwith notify the Mayor and Township Attorney thereof, provided that such time period may be extended for cause by the affirmative vote of a majority of the full membership of the Township Council.
An employee requesting defense of any action or claiming indemnification under this chapter shall cooperate fully and in good faith with the township and with any attorneys, adjusters, investigators or expert or technical personnel engaged for this purpose, in the preparation and presentation of a defense to such action or the settlement or other disposition thereof. If the employee neglects, fails or refuses to cooperate as aforesaid, the Township Council, after a hearing on 10 days' written notice to the employee and for cause, may declare all rights created under this chapter for the benefit of such employee to be forfeited and terminated by the affirmative vote of a majority of the full membership of the Township Council.