Except as hereinafter provided, the Borough of Palmyra 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 governing body, the acts committed upon
which the damages are based did not constitute actual fraud, actual
malice, willful misconduct or an intentional wrong. Nothing in this
section requires the Borough to pay for punitive or exemplary damages
or damages resulting from the commission of a crime.
The terms of this chapter and the definition 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 governing body 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.