[HISTORY: Adopted by the Town Council of the Town of Phillipsburg 6-4-2002 by Ord. No. O:2002-07 (Ch. 18B of the 1969 Code). Amendments noted where applicable.]
A. 
Except as provided herein, the Town of Phillipsburg may, upon the request of any present or former employee of the Town, provide for the defense of any civil action brought against such employee on account of an act or omission in the scope of his or her employment or service to the Town.
B. 
For purposes of this chapter, the term "employee" shall include any employee, official or appointee.
(1) 
The provisions of this chapter shall apply to all employees irrespective of the number of hours worked per week, and whether they are elected or appointed, and shall also include an employee, whether or not such employee holds a professional license or certificate, being paid a fixed salary or hourly rate for the performance of his or her duties, but shall not include any person furnishing professional or extraordinary unspecifiable services under separate appointment, retainer, agreement or contract.
(2) 
This chapter shall also cover employees formerly holding office or employment, provided that the events giving rise to the cause of action or claim hereunder occur after the effective date of this section.
C. 
For purposes of this chapter, the Town's authority to defend and indemnify shall extend to a cross-action, counterclaim or cross-complaint against an employee.
D. 
Where the Town provides for the defense of an employee or former employee pursuant to this section, the Town shall provide indemnification for such employee. However, nothing in this chapter shall require the Town to pay for punitive or exemplary damages or damages resulting from the commission of a crime. The Town may, however, indemnify an employee for exemplary or punitive damages resulting from the employee's civil violation of state or federal law if, in the opinion of the Town Council, the acts committed by the employee on which the damages are based did not constitute actual fraud, actual malice, willful misconduct, or an intentional wrong.
A. 
The Town shall provide for the defense of and indemnify an employee in a civil action if the employee acted or failed to act:
(1) 
In a matter in which the Town has or had an interest;
(2) 
In the discharge of a duty imposed or authorized by state law, rule or regulation, or local ordinance or policy and procedures; and
(3) 
In good faith.
B. 
The Town may refuse to provide for the defense and indemnification provided for in this chapter if the Town determines that:
(1) 
The act or omission was not within the scope of employment;
(2) 
The act or omission was because of actual fraud, actual malice, or willful misconduct; or
(3) 
The defense of the action or proceeding by the Town would create a conflict of interest between the Town and the person or persons involved.
C. 
Under no circumstances shall the Town provide for the defense and indemnification of an employee related to any civil, criminal or administrative action instituted by, or on behalf of, the Town.
A. 
If the Town provides for the defense and indemnification of an employee under the provisions of this chapter, the Town shall pay or reimburse the employee for any bona fide settlement agreements entered into by the employee, and shall pay or reimburse the employee for any judgments entered against the employee, and shall pay or reimburse the employee for any judgments entered against the employee, and shall pay or reimburse the employee for all costs of defending the action, including reasonable counsel fees and expenses, together with costs of an appeal, if any.
B. 
Nothing in this section requires the Town to pay for punitive or exemplary damages or damages resulting from the commission of a crime. The Town may indemnify an employee for exemplary or punitive damages resulting from the employee's civil violation of state or federal law if, in the opinion of the Town Council, the acts committed by the employee upon which the damages are based, did not constitute actual fraud, actual malice, willful misconduct, or an intentional wrong.
A. 
If any criminal action is instituted against any employee based upon an act or omission of that employee arising out of and directly related to the lawful exercise of the employee's official duties under color of his or her authority, and that action is dismissed or results in a final disposition in favor of that officer, the Town shall reimburse the employee for the cost of defending the action, including reasonable counsel fees and expenses, together with costs of appeal, if any.
B. 
Notwithstanding the provisions of this section, the Town shall not be liable for reimbursement where it determines there is cause to dismiss the employee arising out of the incident or related incident(s) of the criminal proceedings.
C. 
This section will apply to claims arising prior to the effective date of this act, provided they are filed within two years of the dismissal or final disposition of the criminal action.
An employee shall not be entitled to defense and indemnification under this chapter, unless within 10 calendar days of the time he or she is served with any summons, complaint, process, notice, demand, or pleading, the employee delivers the original or a copy thereof, to the Clerk for the Town of Phillipsburg, via personal service or certified mail.
A. 
Whenever the Town provides for the defense of any action set forth in this chapter, and as a condition of such defense, the Town may assume exclusive control over the representation of such person defended, and such person shall cooperate with the Town.
B. 
The Town may provide for the defense pursuant to this chapter by authorizing the Municipal Attorney to act on behalf of the employee being defended, or by employing other counsel for such purpose, or by asserting the Town's right under an appropriate insurance policy which requires the insurance to provide such defense.