[Ord. No. 15-90, § 1]
It is the intent and purpose of this article to provide for the indemnification of municipal officials as permitted by N.J.S.A. 59:10-1, et seq.
[Ord. No. 15-90, § 1]
As used in this article, the following terms shall have the meanings indicated:
Coverage afforded by insurance policies of every kind, whether the premiums be paid by the Borough, the municipal official or someone on his behalf.
Any officer, employee, board or committee member, whether full- or part-time, appointed or hired by the Mayor or Borough Council or by any other board or committee authorized to do so, who is authorized to perform any act or service; provided, however, that the term does not include an independent contractor.
[Ord. No. 15-90, § 1]
Subject to the provisions of this article, the Borough shall reimburse a municipal official for all reasonable and necessary expenses incurred (specifically including reasonable attorneys' fees and court costs) and all monetary judgments imposed upon him 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 office held by such municipal official.
[Ord. No. 15-90, § 1]
The Borough shall not be obligated to provide reimbursement in the following instances:
(a)
The act or omission was not within the scope of the municipal official's authorized function.
(b)
The act or failure to act was because of actual fraud, willful misconduct, actual malice or an intentional wrong.
(c)
Where the legal proceeding is instigated or brought by the municipal official.
(d)
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.
(e)
Where the legal proceeding is instigated or brought by the Borough against the municipal official.
(f)
Where the legal proceeding involves a question concerning the election laws.
[Ord. No. 15-90, § 1]
The amount the Borough is obliged to reimburse the municipal official shall be reduced by any insurance coverage payable to the municipal official or by the net amount (recovery, less attorneys' 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.
[Ord. No. 15-90, § 1]
A municipal official shall not be entitled to indemnification or reimbursement pursuant to this article 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 Borough Clerk. The municipal official shall be obliged to cooperate with the Borough in the conduct of his defense. Whenever competent and disinterested legal counsel is available to the Borough through any insurance coverage, the municipal official shall be obliged to be represented by such counsel. If the Borough wishes to use the Borough Attorney or the attorney for any board or committee of the Borough 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 Borough shall terminate the Borough's obligation to reimburse the municipal official.
[Ord. No. 15-90, § 1]
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.
[Ord. No. 15-90, § 1]
If the municipal official files a counteraction in the legal proceedings, the Borough shall not be obligated to reimburse him for any attorneys' fees or court costs attributable to such counteraction.
[Ord. No. 15-90, § 1]
The Borough may reimburse a municipal official for a portion of 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.
[Ord. No. 15-90, § 1]
With respect to members of the Borough's Police Department, the provisions of N.J.S.A. 40A:14-155 shall supersede this article.
[Ord. No. 15-90, § 1]
Any legal action which may be covered by this article which has not been reduced to a final judgment as of the date of passage shall be covered by the terms of this article.