The defense and/or indemnification of an action
shall not be approved under the following conditions:
A. The act or omission which is the subject of the claim
was not within the scope of employment and/or authority.
B. The act or omission which is the subject of the claim
was due to actual fraud, willful misconduct or actual malice.
C. The defense of said action would result in a conflict
of interest between the Township and the official or employee involved.
D. There is, in existence, an insurance policy through
which the Township official or employee would be entitled to a defense
of the action from the insurer.
E. The Township official has failed to advise the Mayor
and/or Township Council, or the employee has failed to advise the
Business Administrator, within 10 working days of the receipt of any
summons, complaint, notice or pleading in the action brought against
him.
F. The Township official or employee fails to fully cooperate
with the Township in the defense of the action.
The Township shall indemnify Township officials
or employees for compensatory damages, and may indemnify for punitive
damages, resulting from the official's or employee's civil violation
of state or federal law if, in the opinion of the Mayor and/or Business
Administrator, the acts committed by the official or employee upon
which the damages are based did not constitute actual fraud, actual
malice, willful misconduct, or an intentional wrong.
The Township shall have the option of either
retaining counsel of its choice to defend said Township official or
employee, or reimbursing said Township official or employee for reasonable
attorney's fees expended by said Township official or employee in
his or her defense.
All actions or legal proceedings against a Township
employee arising out of or incidental to the performance of his duties
shall be defended at the Township's expense on the employee's behalf,
except for disciplinary actions or criminal proceedings instituted
by the Township against the employee.
A. Such actions or legal proceedings shall be forwarded
immediately, upon receipt, to the Business Administrator by the employee.
B. The Business Administrator shall refer the matter
to appropriate counsel who shall provide a defense to the employee
through assignment of an attorney to represent the employee.