Intent and purpose. It is the intent and purpose of this article
to provide for the defense of actions against, and the indemnification
of public employees and officials as permitted by N.J.S.A. 59:10-1
et seq.
Coverage afforded by insurance policies of every kind whether
the premiums are paid by the Township, the public official or employee
or someone on his behalf.
Includes an officer, employee, board or committee member,
servant or official, whether or not compensated or part-time, who
is authorized to perform any act or service; provided, however, that
the term does not include an independent contractor.
Defense of actions. The Township of Washington shall provide for
the defense of any action brought against a public employee or official
on account of any act or omission in the scope of his employment,
and this obligation shall extend to any cross-actions, counterclaims
or cross-complaints against such employee.
The public employee or official failed to deliver any summons, complaint,
process, notice, demand or pleading, the original or a copy of the
same to the Township Clerk within 10 calendar days after the time
he is served.
Withholding defense; defense under reservation. If it appears to
the governing body that a particular claim, lawsuit, action or proceeding
may not be properly the subject for municipal indemnification because
of factual disputes which can only be resolved as the case develops
(during investigation, discovery motion or trial), the governing body
may elect to either:
Withhold a defense until such time as the matter is established to
be a proper one for indemnification. In such case, the employee, officer
or official shall engage his or her own counsel to defend the claim,
lawsuit, action or proceeding, subject to reimbursement of reasonably
necessary fees and costs. Reimbursement shall be made only in the
case of a later determination that the claim was the proper subject
of indemnification.
The Township may elect to provide a defense in such case but subject
to a reservation of rights with respect to any obligation to indemnify
the employer, officer or official.
Methods of providing defense. The Township may provide any defense
required of it under this article through an attorney from its own
staff or by employing other counsel.
Control over litigation. Whenever the Township provides any defense
required of it under this article, the Township, through counsel,
may assume exclusive control over the public employee or official
and such employee or official shall cooperate fully with the defense.
In any case where the Township is required to provide a defense under
this article, the Township shall pay or shall reimburse the public
employee or official for:
If the Township has failed to provide such required defenses,
all costs of defending the action, including reasonable attorneys'
fees and expenses, together with costs of any appeal.
In addition, in any case where the Township would be required to
provide a defense under this article except for the fact that such
defense is provided for by insurance, the Township shall provide indemnification
as aforesaid, but only to the extent not covered by insurance.
The Township shall also indemnify any employee or official in any
case where a defense has been provided with respect to awards of punitive
or exemplary damages except in the following cases:
In these cases where no defense has been provided or a defense has
been provided under a reservation of rights, the Township shall not
indemnify any person for liability or an award of damages, whether
compensatory, punitive or exemplary, unless the governing body has
first declared and determined that the employee or official is properly
entitled to indemnification.
Precedence of statute applying to police. To the extent N.J.S.A.
40A:14-155 provides broader indemnification to members of a police
department of the Township, that statute shall supersede this chapter.