As used in this chapter, the following terms
shall have the meanings indicated:
DEFENSE
Refers to the means by which such public employee may respond
to any suit, allegation, or cause of action.
INDEMNIFICATION
To secure against loss or damage which may occur in the future,
or to provide compensation for or to repair loss or damage already
suffered; to insure; to save harmless.
PUBLIC EMPLOYEE
Includes any employee of the Borough of Newfield and shall
include any elected or appointed official or any officer, employee,
or servant, whether or not compensated, who is authorized to perform
any act or service for the Borough of Newfield. The term "public employee"
shall also include persons formerly holding office or employment,
provided the events giving rise to a cause of action or claim hereunder
conform to the requirements herein established.
By common law and this express provision to
this chapter, the Borough of Newfield's authority to indemnify is
limited to acts by public employees that are within the scope of their
employment and which are not criminal, fraudulent, malicious or instances
of willful misconduct. Additionally, the Borough of Newfield will
not provide the means for defense nor indemnify any public employee
in those instances where the Borough of Newfield has initiated the
charges or action. In the event any such public employee is charged
with criminal charges and he or she is later acquitted, any application
to recover the cost of their defense is expressly conditioned upon
the ultimate determination of administrative charges which may or
may not arise out of the same conduct or behavior. Notwithstanding
all of the above, in the event the Borough of Newfield elects to assert
such administrative charges and even if the employee should thereafter
prevail, all such claims for reimbursement for costs of defense will
be subjected to the controlling statutory and common law as opposed
to this chapter. (Note: the "..., or may not, ..." clause addresses
those instances wherein an officer is suspended on unrelated charges,
but the proceeding is tolled by a parallel criminal action.)
The Borough of Newfield shall provide the defense of any action,
suit or proceeding, whether civil, criminal, administrative or investigative,
including a cross action, counterclaim or cross complaint against
any public employee because of any act or omission of that employee
in the scope of their employment and shall defray all costs of defending
such action, including reasonable counsel fees and expenses, together
with costs of appeal, if any, excepting actions, suits or proceedings
brought by the Borough of Newfield against any such employee. Expressly
exempted from this chapter providing defense and indemnification to
public employees of the Borough of Newfield are any charges, allegations,
or actions of whatever nature asserted by the Borough of Newfield
against its own public employees.