Except as hereinafter provided, the City of Port Republic shall,
upon the request of any present or former official, employee or appointee
of the City of Port Republic, 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.
Pursuant to N.J.S.A. 59:10-4, the City of Port Republic shall
not indemnify any person against the payment of exemplary or punitive
damages, penalties or fines, but may provide for the legal defense
of such claims in accord with the standards set forth herein. The
City of Port Republic may refuse to provide for the defense and indemnification
of any civil action referred to herein if the Council for the City
of Port Republic 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, intentional wrong or actual malice of the person requesting
defense and indemnification; or
C. The defense of the action or proceeding by the City of Port Republic
would create a conflict of interest between the City of Port Republic
and the person or persons involved.
The terms of this chapter and the definitions 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 City of Port Republic, 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 City of Port Republic;
and
D. Any person who, as a condition of his or her appointment or contract,
is required to indemnify and defend the City of Port Republic and/or
secure insurance.
In any other action or proceeding, including criminal proceedings,
the City of Port Republic may provide for the defense of a present
or former official, employee or appointee if the Council for the City
of Port Republic concludes that such representation is in the best
interest of the City of Port Republic and that the person to be defended
acted or failed to act in accord with the standards set forth in this
chapter.
Whenever the City of Port Republic provides for the defense
of any action set forth herein, and as a condition of such defense,
the City of Port Republic may assume exclusive control over the representation
of such persons defended, and such person shall cooperate fully with
the City of Port Republic.
The City of Port Republic may provide for the defense pursuant
to this chapter by authorizing its Attorney to act on behalf of the
person being defended or by employing other counsel for this purpose
or by asserting the right of the City of Port Republic under any appropriate
insurance policy that requires the insurer to provide defense.