[HISTORY: Adopted by the Township Committee of the Township of Delaware by Ord. No. 1983-9; amended in its entirety by Ord. No. 1990-7 (Sec. 2-10 of the 1985 Revised General Ordinances). Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Officers and employees — See Ch. 56.
Personnel — See Ch. 61.
As used in this chapter, the following terms shall have the meanings indicated:
OFFICIAL
Any officer or employee of the Township or any person serving the Township in an unpaid capacity as a volunteer who would not otherwise be classifiable as an officer or employee.
Pursuant to N.J.S.A. 59:10-1 et seq., whenever an official of the Township is defendant in any action or legal proceeding arising out of or incidental to the performance of official duties, the Township Committee is authorized to provide the official with the necessary defense, or at its option, means for the defense, of such action or proceeding and shall hold the official harmless from any payment, settlement or judgment resulting from the proceeding, except in the following situations:
A. 
Where the action has been brought by the Township itself against the official.
B. 
Where the official has been specifically found by the trier of fact in proceedings, civil or criminal, to have acted because of actual fraud, actual malice or willful misconduct or outside the scope of employment or authority.
C. 
Where the official is found to have acted in violation of any Municipal Code of Ethics which may now or hereafter be enacted.
An official shall not be entitled to defense and indemnification under this chapter unless within 10 calendar days of the time he or she is served with any summons, complaint, process, notice, demand or pleadings, he or she delivers the original or a copy thereof to the Township Clerk and unless the official cooperates fully with the defense furnished pursuant to this chapter.
A. 
In the event that an official is insured pursuant to any policy covering the official as to the claim made against him or her, such policy shall be deemed to be primary coverage and the provisions of this chapter shall be operative only as to:
(1) 
Any claim or aspect thereof for which the carrier denies coverage;
(2) 
Any amount in excess of policy limits, except to the extent that such amount is found by a court to be payable by the carrier for failure to negotiate a settlement in good faith; and
(3) 
Any deductible amount or other limitation under the terms of the policy.
B. 
When the Township Committee decides to provide an official with the means for defense by outside counsel, the official may retain counsel of his or her choice, providing that the attorney enters into a written agreement not to seek compensation from the Township at a rate in excess of the rate charged by the Township Attorney during the year in which the work is performed.