Pursuant to N.J.S.A. 59:10-4, the Township of Lower does hereby indemnify
and hold harmless its present and former employees, appointees, and elected
officials from any liability arising out of acts performed by them, or any
of them, during the ordinary course of their duties and within the scope of
their employment or authority.
Pursuant to the provisions of §
25-1 hereof, the Township of Lower shall provide for the defense of any action brought against any such employee, appointee, or elected official on account of an act or omission within the scope of his employment or authority.
The Township shall retain the right to maintain a cross action, counterclaim,
or cross-complaint against any employee, appointee, or elected official indemnified
pursuant to this chapter.
The Township may refuse to provide for the defense of an action against
a present or former employee, appointee, or elected official, if it shall
determine that:
A. The act or omission complained of was not within the
scope of employment or authority; or
B. The act or the failure to act was because of actual fraud,
willful misconduct or actual malice.
In any other action or proceeding, including criminal proceedings, the
Township may provide for the defense of a present or former employee, appointee,
or elected official if, in the sole discretion of the Township Council, the
Township Council concludes that such representation is in the best interest
of the Township.
Whenever the Township provides for the defense of a present or former
employee, appointee, or elected official pursuant to this chapter, the Township
retains the right to assume exclusive control over the representation of such
present or former employee, appointee, or elected official, and such present
or former employee, appointee, or elected official shall cooperate fully with
the Township in its defense. Failure of the present or former employee, appointee,
or elected official to cooperate fully with the Township in its defense shall
release the Township from any and all obligation under this chapter to indemnify
the present or former employee, appointee, or elected official.
The Township may provide for a defense pursuant to this chapter by the
Township Solicitor, or by employing other counsel for this purpose, or by
asserting the Township's right under any appropriate insurance policy which
requires the insurers to provide the defense.
The Township shall have the sole and exclusive right to settle and otherwise
adjust any action which it is called upon to defend pursuant to this chapter
without the approval of the effected present or former employee, appointee,
or elected official. In the event that the present or former employee, appointee,
or elected official shall object to any proposed settlement or adjustment
of an action defended by the Township pursuant to this chapter, the Township
may, in its sole discretion, permit the present or former employee, appointee,
or elected official to assume the defense of the action. In such event, however,
the present or former employee, appointee, or elected official shall execute
a written document releasing the Township from any and all obligation to indemnify
and hold harmless said present or former employee, appointee, or elected official
pursuant to this chapter. The Township expressly retains the right to reject
the objections of the present or former employee, appointee, or elected official
and to settle or adjust any action if, in the opinion of the Township, it
is in the best interest of the Township to do so.