[HISTORY: Adopted by the Township Committee of the Township
of Riverside 3-27-1985 by Ord. No. 1985-2 (Ch. 24 of the 1995
Code). Amendments noted where applicable.]
Pursuant to N.J.S.A. 59:10-4, the Township of Riverside 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."
As used in this chapter, the following terms have the meanings
indicated:
Shall apply to all employees irrespective of the number of hours
worked per week.
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.
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, under 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
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 3-22-1999 by Ord. No. 1999-2]
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, fraudulent, malicious or willful misconduct.
However, the Township is required to indemnify and save harmless each
employee from financial loss resulting from any civil violation of
state or federal law, including claims for punitive or exemplary damages,
provided that the Township Committee finds that the acts committed
by the employee upon which the damages are based do not constitute
actual fraud, actual malice, willful misconduct or an actionable wrong.
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.
A.Â
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 Committee.
B.Â
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
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 Committee, 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 Committee.
