Except as hereinafter provided, the Borough of Old Tappan, hereinafter
known as "the Borough," shall, upon the request of any present or former official,
employee or appointee of the Borough, provide for 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.
Pursuant to N.J.S.A. 59:10-4, the indemnification and defense provided
for in this chapter shall include exemplary or punitive damages resulting
from the employee's civil violation of state or federal law if, in the
opinion of the Mayor and Council, the acts committed upon which the damages
are based did not constitute actual fraud, actual malice, willful misconduct
or an intentional wrong.
The terms of this chapter and the definitions 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:
A. Any person who is not a natural person;
B. Any person while providing goods or services of any kind
under any contract with the Borough except an employment contract;
C. Any person while providing legal or engineering services
for compensation unless said person is a full-time employee of the Borough;
and
D. 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.
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 Mayor and Council of the Borough of Old Tappan 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 on 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.