[HISTORY: Adopted by the Mayor and Council
of the Borough of Palisades Park 7-15-2008 by Ord. No. 1512. Amendments
noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 32
Officers and employees — See Ch. 48.
For the purposes of this chapter, unless the
context clearly indicates a different meaning, the following words
and phrases shall have the following meaning as set forth:
The Mayor, any member of the Borough Council or any other
officer or employee, appointed, elected or hired by the Borough, whether
full- or part-time.
Coverage afforded by insurance policies of every kind, whether
the premiums be paid by the Borough, the employee or someone on his
or her behalf.
[Amended 12-15-2014 by Ord. No. 1632]
A.
The Borough shall reimburse an officer or employee
for all reasonable expenses incurred, specifically court costs and
all monetary judgments imposed upon him/her, 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 the office held by
such employee. The Borough shall indemnify an employee for exemplary
or punitive damages resulting from the employee's civil violation
of state and/or federal law if the acts committed by the employee
upon whom the damages are based did not constitute actual fraud, actual
malice, willful misconduct or an intentional wrong.
B.
The Borough shall not be obligated to provide reimbursement
in the following instances:
(1)
Where the legal proceeding involved a claim of misfeasance
or malfeasance in office or a claim of fraud, theft or misappropriation
of public funds and the Mayor, Council or officer or employee is found
liable for the charge.
(2)
Where the legal proceeding is instigated or brought
by the Borough.
C.
Notwithstanding any provision in an employee's contract to the
contrary, any employee shall not be entitled to indemnification or
reimbursement pursuant to this section unless, within 10 calendar
days of the time he or she is served with any summons, complaint,
process, notice, demand or pleading, he or she notifies the Borough.
Whenever competent and disinterested legal counsel is available to
the Borough through any insurance coverage, the Mayor, Borough Council,
Borough officers, employees and/or any appointed officials shall be
obligated to be represented by such counsel. If the Borough wishes
to use the General Counsel of the Borough to defend the action, the
Mayor, Borough Council, Borough officers, employees and/or any appointed
officials shall be obligated to be represented by that attorney unless
there is a conflict of interest. The refusal of the Mayor, Borough
Council, Borough officers, employees and/or any appointed officials
to cooperate with the Borough shall terminate the Borough's obligations
to reimburse the Mayor, Borough Council, Borough officers, employees
and/or any appointed officials.
D.
The Borough agrees to pay all reasonable litigation expenses, including
attorneys' fees of the Mayor, Borough Council, Borough officers,
employees and/or any appointed officials throughout the pendency of
any litigation in which the Mayor, Borough Council, Borough officers,
employees and/or any appointed official is a party or witness where
the action relates to matters in connection with and within the scope
of his position. The Borough may reimburse the Mayor, Borough Council,
Borough officers, employees and/or any appointed officials for a portion
of an expense incurred prior to a final decision in a legal proceeding.
[Amended 12-14-2015 by Ord. No. 1658; 7-24-2018 by Ord. No. 2018-8]
A.
Notwithstanding any provision in an employee's contract to the
contrary, the Borough shall reimburse the Mayor, Borough Council,
Borough officers, employees and/or any appointed official for the
reasonable and customary legal costs of successfully defending against
criminal charges, actual or threatened, where such charges result
from the performance of the Mayor's, Borough Council's,
Borough officers', employees' and/or any appointed official's
duties and the Mayor, Borough Council, Borough officers, employees
and/or any appointed official is deemed to have acted in good faith.
[Amended 12-15-2014 by Ord. No. 1632]
B.
That the Borough shall pay for all legal expenses
incurred in the event the Borough Attorney advises the Borough that
the employee in all likelihood will be found to have acted in good
faith.
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 and 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 her or her appointment
or contract is required to indemnify and defend the Borough and/or
secure insurance.
The Borough shall provide for defense or/and
indemnify any present or former official, employee or appointee of
the Borough who becomes a defendant in a civil action if the person
or persons involved a) acted or failed to act in a matter in which
the Borough has or had an interest; b) acted or failed to act in the
discharge of a duty imposed or authorized by law; and c) acted or
failed to take action in good faith. For purposes of this chapter,
the duty and authority of the Borough to defend and indemnify shall
extend to a cross-claim or counterclaim against said person.
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.
