Except as hereinafter provided, the Township of Delanco, hereinafter
known as "the Township," shall, upon the request of any present or
former official, employee or appointee of the Township, provide for
indemnification and legal defense of any civil action brought against
said person or persons arising from an act or omission falling within
the scope of their public duties.
The Township of Delanco shall not indemnify any person against
the payment of punitive damages, penalties, or fines but may provide
for the legal defense of such claims in accord with the standards
set forth herein. The Township may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
Township Committee determines that:
A. The act or omission did not occur within the scope of a duty authorized
or imposed by law;
B. The act or failure to act was the result of actual fraud, willful
misconduct or actual malice of the person requesting defense and indemnification;
or
C. The defense of the action or proceeding by the Township would create
a conflict of interest between the Township and the person or persons
involved.
The terms of this chapter and the definition of "official,"
"employee" and "appointee" are to be construed liberally in order
to effectuate the purposes of this chapter except that these terms
shall not mean:
A. Any person who is not a natural person;
B. Any person while providing goods or services of any kind under any
contract with the Township except an employment contract;
C. Any person while providing legal or engineering services for compensation
unless said person is a full-time employee of the Township; and
D. Any person who, as a condition of his or her appointment or contract
is required to indemnify and defend the Township and/or secure insurance.
The Township shall provide for defense of and indemnify any
present or former official, employee or appointee of the Township
who becomes a defendant in a civil action if the person or persons
involved a) acted or failed to act in a matter in which the Township
has or had an interest; b) acted or failed to act in the discharge
of a duty imposed or authorized by law; and c) acted or failed to
take action in good faith. For purposes of this chapter, the duty
and authority of the Township to defend and indemnify shall extend
to a cross-claim or counterclaim against said person.
In any other action or proceeding, including criminal proceedings,
the Township may provide for the defense of a present or former official,
employee or appointee if the Township Committee concludes that such
representation is in the best interest of the Township and that the
person to be defended acted or failed to act in accord with the standards
set forth in this chapter.
Whenever the Township provides for the defense of any action
set forth herein and as a condition of such defense, the Township
may assume exclusive control over the representation of such persons
defended, and such person shall cooperate fully with the Township.
The Township may provide for the defense pursuant to this chapter
by authorizing its attorney to act in behalf of the person being defended
or by employing other counsel for this purpose or by asserting the
right of the Township under any appropriate insurance policy that
requires the insurer to provide defense.