[HISTORY: Adopted by the Mayor and Common Council of the
City of Gloucester City 7-5-1990 by Ord. No. 19-1990. Amendments noted where applicable.]
Be it ordained by the Mayor and Common Council of the City of
Gloucester City, in the County of Camden and State of New Jersey,
that:
It is the intent and purpose of this ordinance 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.
As used in this ordinance, the following terms shall have the
meanings indicated:
Includes an officer, employee, 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.
Any employee or official or former employee or former official
of the City of Gloucester City.
The City of Gloucester City 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 provisions of § 4A-3 shall not be applicable when the governing body determines that:
A.
The act or omission was not within the scope of employment.
B.
The act or failure to act was because of actual fraud, willful misconduct
or actual malice.
C.
The defense of the action or proceeding would create a conflict of
interest between the city and the public employee.
D.
The defense of the action or proceeding is provided for by an insurance
policy or policies, whether obtained by the city or by any other person.
E.
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 City Clerk of the City of Gloucester City within 10 calendar
days after the time he is served.
F.
The public employee or official has failed to cooperate fully with
the defense.
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:
A.
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.
B.
The City of Gloucester City 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.
The city may provide any defense required of it under this ordinance
through an attorney from its own staff or by employing other counsel.
Whenever the city provides any defense required of it under
this ordinance, the city, through counsel, may assume exclusive control
over the representation of the public employee or official, and such
employee or official shall cooperate fully with the defense.
A.
In any case where the city is required to provide a defense under
this ordinance, the city shall pay or shall reimburse the public employee
or official for:
(1)
Any bona fide settlement agreements entered into by the employee
or official.
(2)
Any judgments entered against the employee or official.
(3)
If the city 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.
B.
In addition, in any case where the city would be required to provide
a defense under this ordinance except for the fact that such defense
is provided for by insurance, the city shall provide indemnification
as aforesaid, but only to the extent not covered by insurance.
A.
The City of Gloucester City 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:
B.
In these cases where no defense has been provided or a defense has
been provided under a reservation of rights, the city 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.
If any section, subsection, sentence, clause, phrase or portion
of this ordinance is for any reason held invalid or unconstitutional
by any court or federal or state agency of competent jurisdiction,
such portion shall be deemed a separate, distinct and independent
provision, and such holding shall not affect the validity of the remaining
portions hereof.
All inconsistent ordinances or parts of ordinances inconsistent
with the provisions of this ordinance are hereby repealed.
