Except as hereinafter provided, the City of Estell Manor, hereinafter
known as the "municipality," shall, upon the request of any present
or former official, employee or appointee of the municipality, 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.
The terms of this chapter and the definition 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 any person who is not a natural person; any person
while providing goods or services of any kind under any contract with
the municipality except an employment contract; any person while providing
legal or engineering services for compensation unless said person
is a regular full- or part-time employee of the municipality; and
any person who as a condition of his or her appointment or contract
is required to indemnify and defend the municipality and/or secure
insurance.
The municipality shall provide for defense of and indemnify
any present or former official, employee or appointee of the municipality
who becomes a defendant in a civil action if the person or persons
involved acted or failed to act in a matter in which the municipality
has or had an interest; acted or failed to act in the discharge of
a duty imposed or authorized by law; and acted or failed to take action
in good faith. For purposes of this chapter, the duty and authority
of the municipality to defend and indemnify shall extend to a cross-claim
or counterclaim against said person.
The municipality 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 municipality may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
City of Estell Manor, by its governing body, determines that the act
or omission did not occur within the scope of a duty authorized or
imposed by law; 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 the defense of the action or proceeding
by the municipality would create a conflict of interest between the
municipality and the person or persons involved.
In any other action or proceeding, including criminal proceedings,
the municipality may provide for the defense of a present or former
official, employee or appointee if the City Council concludes that
such representation is in the best interest of the municipality and
that the person to be defended acted or failed to act in accord with
the standards set forth in this chapter.
Whenever the municipality provides for the defense of any action
set forth herein and as a condition of such defense, the municipality
may assume exclusive control over the representation of such persons
defended, and such person shall cooperate fully with the municipality.
The municipality may provide for the defense pursuant to this
chapter by authorizing its Attorney to act in behalf of the person
being defended or by employing other counsel for this purpose or by
asserting the right of the municipality under any appropriate insurance
policy that requires the insurer to provide defense.