[HISTORY: Adopted by the Township Committee of the Township
of Liberty 10-2-1989 by Ord. No. 9-89. Amendments noted where applicable.]
For the purpose of this chapter, unless the context clearly
indicates a different meaning, the following words and phrases shall
have the meanings set forth:
Coverage afforded by insurance policies of every kind whether
the premiums be paid by the Township, the Municipal Official or someone
on his behalf.
Any officer, employee, Board or Committee member appointed
or hired by the Mayor or Township Administrator whether, full- or
part-time. The term shall also include any person elected by the voters
to fill any official position in the township or any person subsequently
appointed to fill such a position.
Subject to the provisions of this chapter, the municipality
shall reimburse a municipal official for all expenses incurred (specifically
including reasonable attorney's fees and court costs and all
monetary judgments imposed upon him in any action or legal proceeding
of a noncriminal nature arising out or incidental to the performance
of the duties of the position or the office held by such municipal
official. The township shall indemnify a municipal official for exemplary
or punitive damages resulting from the municipal official's civil
violation of state and/or federal law if, in the opinion of the Township
Committee, the acts committed by the municipal official upon which
the damages are based did not constitute actual fraud, actual malice,
willful misconduct or an intentional wrong.
The township shall not be obligated to provide reimbursement
in the following instances:
A.
Where the legal proceeding is instigated or brought by the municipal
official.
B.
Where the legal proceeding involves a claim of misfeasance or malfeasance
in office or a claim of fraud, theft or misappropriation of public
funds, and the municipal official is found liable for the charge.
C.
Where the legal proceeding is instigated or brought by the municipality
against the municipal official.
D.
Where the legal proceeding involves a question concerning the election
laws.
The amount the township is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official by the net amount (recovery costs) of any money
received by the municipal official in any counteraction against the
person or persons bringing the action against him.
A municipal official shall not be entitled to indemnification
or reimbursement pursuant to this chapter unless, within 10 calendar
days of the time he is served with any summons, complaint, process
notice, demand or pleading, he delivers the original or a copy thereof
to the Township Clerk. The municipal official shall be obliged to
cooperate with the township in the conduct of his defense. Whenever
competent and disinterested legal counsel is available to the township
through any insurance coverage, the municipal official shall obliged
to be represented by such counsel. If the township wishes to use the
Township Attorney or the attorney for any Board or Committee of the
township to defend the action, the municipal official shall be obligated
to be represented by that attorney unless there is a conflict of interest.
The refusal of the municipal official to cooperate with the township
shall terminate the township's obligation to reimburse the municipal
official.
If the legal proceeding is terminated by an agreement among
the parties, then the township shall not be obligated to reimburse
the municipal official unless the township approves the settlement
agreement.
If the municipal official files a counteraction or counterclaim
in the legal proceedings, the municipality shall not be obligated
to reimburse him for any attorney's fees or court costs attributable
to such counteraction.
The township may reimburse a municipal official for a portion
of an expense incurred prior to a final decision in a legal proceeding,
but the township shall be entitled to wait for a final determination
before being obligated to make any payments.
To the extent that N.J.S.A. 40A:14-155 provides broader indemnification
to members of the municipality's Police Department, that statute
shall supersede this chapter.
This chapter shall take effect upon final passage and publication
according to law. Any legal action which may be covered by this chapter
which has not been reduced to final judgment as of the date of passage
shall be covered by the terms of the chapter.
