This chapter is intended to either reimburse or indemnify municipal
officers and employees for legal expenses, court costs and, in certain
instances, judgments incurred by or imposed against them in connection
with the performance of their duties.
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:
INSURANCE
Coverage afforded by insurance policies of every kind, whether
the premiums are paid by the Borough, the municipal official or someone
on his or her behalf.
MUNICIPAL OFFICIAL
Any officer, employee, or board or committee member appointed
or hired by the Mayor or Council, whether full or part time. The term
shall also include any person elected by the voters to fill any official
position in the Borough or any person subsequently appointed to fill
such a position.
Subject to the provisions of this chapter, the Borough shall
reimburse a municipal official for all expenses incurred, specifically
including reasonable attorney fees and court costs, and all monetary
judgments imposed upon him or her in any action or legal proceeding
of a noncriminal nature arising out of or incidental to the performance
of the duties of the position or the office held by such municipal
official. The Borough 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 Borough may refuse to provide for the defense and indemnification
of any civil action referred to herein if the Borough Council 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 Borough would create
a conflict of interest between the Borough and the person or persons
involved.
The Borough shall not be obligated to provide reimbursement
in the following instances:
A. Where the legal proceeding is instigated or brought by the municipal
officer.
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 Borough is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official by the net amount (recovery less attorney fees,
disbursements and court costs) of any money received by the municipal
official in any counteraction against the person or persons bringing
the action against him.
If the legal proceeding is terminated by an agreement among
the parties, then the Borough shall not be obligated to reimburse
the municipal official unless the Borough approves the settlement
agreement.
If the municipal official files a counteraction in the legal
proceeding, the municipality shall not be obligated to reimburse him
for any attorney fees or court costs attributable to such counteraction.
The Borough may reimburse a municipal official for a portion
of any expenses incurred prior to a final decision in a legal proceeding,
but the Borough shall be entitled to wait for a final determination
before being obligated to make any payments.
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.