Notwithstanding terms of any collective bargaining agreement to the
contrary, the governing body is hereby authorized to provide indemnification
or defense for any person holding an office or employment under the
jurisdiction of the Township of Middletown, whenever any action has
been or shall be brought against any such person, arising from the
acts or omissions of such person from their assigned duties.
In indemnifying and defending such persons, the Township shall incur
all costs of defending such action, including reasonable counsel fees
and expenses, together with the costs of appeal, if any, and shall
hold harmless and protect such person for any financial loss resulting
therefrom.
Subject to the terms of this article, the Township Attorney shall
defend Township officers or employees. If the Township Attorney is
conflicted or unable to participate in said defense, the governing
body shall appoint special or conflict counsel.
In the event that any officer or employee or board member engages
an attorney without the approval of the municipality and prior agreement
as to the cost of services, all costs so incurred shall be the sole
responsibility of that officer or employee.
Any officer or employee of the Township being indemnified by the
Township and represented by counsel for the Township must cooperate
fully with the Township's assigned counsel in their defense unless
they wish to waive such representation; thereafter, all costs or liabilities
so incurred shall be the sole responsibility of that officer or employee.
Judgment or settlement of a civil cause of action relating to a claim
based upon criminal activity, actual fraud, actual malice, or willful
misconduct, or actions outside the scope of the officer or employees
official duties.
Judgments calling for punitive or exemplary damages, unless the Township
Committee first determines the officer or employee's actions
did not constitute actual fraud, actual malice, gross misconduct,
or an intentional tort.