[Adopted 3-18-2003 by Ord. No. 816-03]
Pursuant to N.J.S.A. 59:10-4, as same may be
amended from time to time, the Borough of Old Tappan does hereby authorize
indemnification of any person holding public office, position or employment,
elective or appointive, hereinafter referred to as the "employee."
The Borough of Old Tappan shall, upon request,
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. At the Borough's
option, the Borough may, in lieu of providing for the defense of an
action, suit or proceeding, reimburse the employee for the employee's
costs of defending an action, suit or proceeding.
The Borough shall indemnify and save harmless
each employee from financial loss resulting from any action described
in this article, 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 Borough to pay for
punitive or exemplary damages or damages resulting from the commission
of a crime.
The Borough may employ legal counsel and expert
or technical personnel to provide a defense, pursuant to this article,
and may purchase appropriate insurance as protection against any liability
arising under this article.
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 Borough Clerk, whereupon it shall be the
duty of the Borough Clerk to forthwith notify the Mayor and Borough
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 governing body.
An employee requesting defense of any action
or claiming indemnification under this article shall cooperate fully
and in good faith with the Borough 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 such employee shall
neglect, fail or refuse to cooperate as aforesaid, the Borough Council,
after hearing on 10 days' written notice to the employee and for cause,
may declare all rights created under this article for the benefit
of such employee to be forfeited and terminated by the affirmative
vote of a majority of the full membership of the governing body.
