Except as hereinafter provided, the Township of Alloway, 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 falling within
the scope of their public duties.
The Township 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 Township may refuse to provide for the defense and indemnification
of any civil action referred to herein if the Alloway Township Committee
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.
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.
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 Alloway Township Committee 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.
Whenever the Township provides for the defense of any action
set forth herein and as a condition of such defense, the Township
may assume exclusive control over the representation of such persons
defended and such person shall cooperate fully with the Township.
The Township 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 Township under any appropriate insurance policy that
requires the insurer to provide defense.