Except as hereinafter provided, the Township of Jefferson, hereinafter
known as the "Township," shall, upon the request of any present or
former official, employee or appointee of the Township, provide for
indemnification and legal defense of any civil action brought against
said person or persons arising from an act or omission failing within
the scope of their public duties.
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 Township 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 Township; and
D. Any person
who, as a condition of his or her appointment or contract, is required
to indemnify and defend the Township and/or secure insurance.
The Township is not required to 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 Township may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
Township 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 Township would create a conflict
of interest between the Township and the person or persons involved.
In any other action or proceeding, including criminal proceedings,
the Township may provide for the defense of a present or former official,
employee or appointee, if the Township Council concludes that such
representation is in the best interest of the Township, and that the
person to be defended acted or failed to act in accord with the standards
set forth in this chapter.
The Township 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 Township under any appropriate insurance policy that
requires the insurer to provide a defense. If the employee refuses
to utilize the attorney designated by the Township, then the Township’s
obligation to provide counsel, or to reimburse for counsel, shall
be terminated.
This chapter shall take effect immediately upon passage and
publication as required by law.