For the purposes of this chapter, unless the
context clearly indicates a different meaning, the following words
and phrases shall have the meanings set forth:
INSURANCE
Coverage afforded by insurance policies of every kind, whether
the premiums are paid by the Borough, the municipal official or someone
on his behalf.
MUNICIPAL OFFICIAL
Any officer, employee, board member or committee member appointed
or hired by the Mayor or Borough Council of the Borough of Hampton
to hold an office or position in or for the Borough of Hampton, whether
full- or part-time. The term shall also include any person elected
by the voters of the Borough of Hampton to fill any official position
in the Borough or any person subsequently appointed to fill such position.
[Amended 11-9-1992 by Ord. No. 14-92]
Subject to the provisions of this chapter, the
Borough of Hampton shall reimburse a municipal official for all expenses
incurred (specially including reasonable attorneys' fees and court
costs) and all monetary judgments imposed upon him in any action or
legal proceeding of a noncriminal nature arising out of or incidental
to the performance of the duties of the position or office held by
such municipal official.
The Borough shall not be obligated to provide
reimbursement in the following instances:
A. Where the legal proceeding is instigated or brought
by the municipal official.
B. Where the legal proceeding involves a claim of misfeasance
or malfeasance in office or a claim of fraud, theft or misappropriation
of public funds and the municipal official is found liable for the
charge.
C. Where the legal proceeding is instigated or brought
by the Borough of Hampton against the municipal official.
D. Where the legal proceeding involves a question concerning
the election laws.
The amount the Borough is obliged to reimburse
the municipal official shall be reduced by any insurance coverage
payable to the municipal official and by the net amount (recovery
less attorneys' fees, disbursements and court costs) of any money
received by the municipal official in any counteraction against the
person or persons bringing the action against him.
The municipal official shall be obliged to cooperate
with the Borough in the conduct of his defense. Whenever competent
and disinterested legal counsel is available to the Borough through
any insurance coverage, the municipal official shall be obliged to
be represented by such counsel. If the Borough wishes to use the Municipal
Attorney or the attorney for any board or committee of the Borough
to defend the action, the municipal official shall be obligated to
be represented by that attorney unless there is a conflict of interest.
The refusal of the municipal official to cooperate with the Borough
shall terminate the Borough's obligation to reimburse the municipal
official.
If the legal proceeding is terminated by an
agreement amongst the parties, then the Borough shall not be obligated
to reimburse the municipal official unless the Borough approves the
settlement agreement.
If the municipal official files a counteraction
in the legal proceedings, the Borough shall not be obligated to reimburse
him for any attorneys' fees or court costs attributable to such counteraction.
The Borough may reimburse a municipal official
for a portion of expenses incurred prior to a final decision in a
legal proceeding, but the Borough shall be entitled to wait for a
final determination before being obliged to make any payments.