[HISTORY: Adopted by the Township Committee of the Township of Stillwater 9-19-1989
by Ord. No. 89-20 (§ 2-27 of the 1971 Revised General
Ordinances). Amendments noted where applicable.]
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:
Coverage afforded by insurance policies of every kind, whether the
premiums are paid by the Township, the municipal official or someone on his
behalf.
Any officer, employee, board or committee member appointed or hired
by the Mayor or Township Committee, whether full- or part-time. The term shall
also include any person elected by the voters of the Township to fill any
official position in the Township or any person subsequently appointed to
fill such position.
Subject to the provisions of this chapter, the Township of Stillwater
shall reimburse a municipal official for all expenses incurred (specifically
including reasonable attorney 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 Township shall indemnify a
municipal official for exemplary or punitive damages resulting from the municipal
official's civil violation of state or federal law if, in the opinion
of the Township Committee, the acts committed by the municipal official upon
which the damages are based did not constitute actual fraud, actual malice,
willful misconduct or an intentional wrong.
The Township 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 Township of Stillwater against the municipal official.
D.
Where the legal proceeding involves a question concerning
the election laws.
The amount the Township is obliged to reimburse the municipal official
shall be reduced by any insurance coverage payable to the municipal official
by the net amount (recovery less attorney 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.
A municipal official shall not be entitled to indemnification or reimbursement
pursuant to this chapter unless, within 10 calendar days of the time he is
served with any summons, complaint, process, notice, demand or pleading, he
delivers the original or a copy thereof to the Township Attorney. The municipal
official shall be obliged to cooperate with Township in the conduct of his
defense. Whenever competent and disinterested legal counsel is available to
the Township through any insurance coverage, the municipal official shall
be obliged to be represented by such counsel. If the Township wishes to use
the Township Attorney or the attorney for any board or committee of the Township
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 Township shall terminate the Township's
obligation to reimburse the municipal official.
If the legal proceeding is terminated by an agreement among the parties,
then the Township shall not be obligated to reimburse the municipal official
unless the Township approves the settlement agreement.
If the municipal official files a counteraction in the legal proceedings,
the Township shall not be obligated to reimburse him for any attorney fees
or court costs attributable to such counteraction.
The Township may reimburse a municipal official for a portion of the
expenses incurred prior to a final decision in a legal proceeding, but the
Township shall be entitled to wait for a final determination before being
obligated to make any payments.
To the extent that N.J.S.A. 40A:14-155 provides broader indemnification
to members of the Township of Stillwater Police Department, that statute shall
supersede this chapter.
This chapter shall take effect upon final passage and publication according
to law. Any legal action which may be covered by this chapter which has not
been reduced to a final judgment as of the date of passage shall be covered
by the terms of the chapter.