[HISTORY: Adopted by the Mayor and Council of the Borough
of Raritan 2-14-1989 (Ch. 21A of the 1966 Code). Amendments noted where applicable.]
Pursuant to P.L. 1972, c. 45, Section 4 (N.J.S.A. 59:10-4),
the Borough of Raritan does hereby authorize indemnification of any
person holding public office, position or employment, elective or
appointive, since January 1, 1986, hereinafter referred to as the
"employee."
The Borough of Raritan shall, upon request, provide for the
defense of any action, suit or proceeding, commenced or threatened,
whether civil, criminal, administrative or investigative, including
a cross-action, counterclaim or cross-complaint, against any employee
on account of any act or omission in the scope of his employment and
shall defray all costs of defending such action, including reasonable
counsel fees and expenses, together with costs of appeal, if any,
provided that the act or the failure to act does not arise out of
actual fraud, willful misconduct or actual malice.
The Borough shall indemnify and save harmless each employee
from financial loss resulting from any action described above in this
chapter, including claims, losses, expenses, judgments, fines, attorney
fees, court costs and expert or technical witness fees and any amount
paid in settlement thereof and actually and reasonably incurred in
connection therewith to the extent permitted by law. Expenses thus
incurred may be paid in advance of final disposition of the action.
Nothing herein shall authorize the Borough to pay for punitive or
exemplary damages or damages resulting from the commission of a crime.
As used in this chapter, the following terms shall have the
meanings indicated:
Applies to all employees, irrespective of the number of hours
worked per week. The word "employee" shall include each such person,
whether or not such person holds a professional license or certificate,
being paid a fixed salary or hourly rate for the performance of his
duties, but shall not include any person furnishing professional or
extraordinary unspecifiable services under separate appointment, retainer,
agreement or contract.
The Borough may employ legal counsel and expert or technical
personnel to provide a defense, pursuant to this chapter, and may
purchase appropriate insurance as protection against any liability
arising under this chapter.
An employee shall not be entitled to indemnification or the
cost of defense under this chapter unless, within 10 days of the time
such employee is served with any summons, order to show cause, complaint,
process, notice, demand or pleading, he delivers the same or a copy
thereof to the Borough Clerk, whereupon it shall be the duty of the
Borough Clerk to forthwith notify the Mayor and Borough Attorney thereof,
provided that such time period may be extended for cause by the affirmative
vote of a majority of the full membership of the Borough Council.
An employee requesting defense of any action or claiming indemnification
under this chapter shall cooperate fully and in good faith with the
Borough and with any attorneys, adjusters, investigators or expert
or technical personnel engaged for this purpose, in the preparation
and presentation of a defense to such action or the settlement or
other disposition thereof. If such employee shall neglect, fail or
refuse to cooperate as aforesaid, the Borough Council, after hearing
on 10 days' written notice to the employee and for cause, may
declare all rights created under this chapter for the benefit of such
employee to be forfeited and terminated by the affirmative vote of
a majority of the full membership of the Borough Council.
This chapter shall apply to any actions, suits or proceedings
instituted after January 1, 1986, and provide for payment after taking
effect.
