The Township Commissioners hereby find that it is appropriate
to provide for the indemnification of Township employees and officials
in accordance with the provisions of N.J.S.A. 59:10-4 (New Jersey
Tort Claims Act), which empowers local public entities to provide
for such indemnification.
As used in this chapter, the following term shall have the meanings
indicated:
EMPLOYEE
Includes each person presently holding any office, position
or employment, elective or appointive, whether or not such person
holds a professional license or certification and irrespective of
the number of hours worked per week or is being paid a fixed salary
or hourly rate for the performance of his/her duties, but shall not
include any person furnishing professional or extraordinary unspecifiable
services under separate appointment, retainer, agreement or contract,
and shall also include persons formerly holding office or employment;
provided, however, that the events giving rise to a cause of action
or claim for which indemnification is sought must have occurred after
January 1, 1994, and any claim based on an event prior to that date
shall not be covered by this chapter.
An employee shall not be entitled to indemnification or the
cost of defense under this chapter unless, within seven days of the
time such employee is served with any summons, order to show cause,
complaint, process, notice, demand or pleading, he/she delivers the
same or a copy thereof to the Municipal Clerk, who shall then forthwith
notify the Mayor and Township Solicitor of the pending action; provided,
however, that this time period may be extended for good cause by the
affirmative vote of a majority of the full membership of the governing
body.
The Township may provide any defense required of it under this
chapter through an attorney from its own staff or by employing other
counsel.
Whenever the Township provides any defense required of it under
this chapter, the Township, through counsel, may assume exclusive
control over the representation of the public employee, and such employee
shall cooperate fully with the defense.
If the municipal official files a counteraction or counterclaim
in the legal proceedings, the municipality shall not be obligated
to reimburse him for attorneys' fees or court costs attributable
to such counteraction.
It shall be within the sole discretion of the governing body
to decide whether to pay for the costs of counsel beyond the trial
court level.
An employee claiming indemnification under this chapter shall
cooperate fully and in good faith with the Township and with any attorneys,
adjusters, investigators or experts or technical personnel engaged
by the employee for the preparation and presentation of a defense
to such action or the settlement or other disposition thereof, including
any counsel or other professionals engaged independently by the municipality,
and if the employee neglects, fails or refuses to cooperate as herein
required, the governing body, after a 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 Township Committee.