[HISTORY: 1973 Code § 13-1 and § 13-2
as amended through October 13, 2016. Amendments noted where applicable.]
[Ord. No. 4-2008;; Res. No. R-78-14, 4/28/14; New]
There is hereby created and established in the Borough of North
Caldwell a Personnel Policy and Procedures Manual of the Borough of
North Caldwell as may be amended and adopted by ordinance of the governing
body from time to time. Said manual shall memorialize the personnel
policies and procedures of the Borough to the extent that they are
not inconsistent with existent collective bargaining agreements.
A.
Purpose. It is the intent and purpose of this section to provide
for the defense of actions against, and the indemnification of, public
employees as permitted by N.J.S.A. 59:10-1 et seq.
B.
Definition of employee. As used in this section, the term "employee"
means any elected or appointed official or any officer, employee or
servant of the Borough including the Borough Attorney, present or
former, whether or not compensated or part-time, who is or was authorized
to perform any act or service on behalf of the borough. The term specifically
does not include an independent contractor, except for the Borough
Attorney. (New)
C.
Provisions for defense. The borough shall provide for the defense
of any action brought against an employee which results from any act
or omission in the scope of his employment, whether via direct complaint,
counterclaim or crossclaim against such employee.
D.
Exceptions. The provisions for defense and indemnification shall
not be applicable when the Mayor and Council determine that:
(1)
The act or omission was not within the scope of employment of the
employee;
(2)
The employee's actions or failure to act were the result of actual
fraud, willful misconduct, malice or an intentional wrong;
(3)
The defense of the action or proceeding and indemnification against
loss are provided for by an insurance policy or policies on which
the employee is an insured whether obtained by the borough or by any
other person;
(4)
The employee failed to deliver to the Borough Administrator, within
10 calendar days after the time he is served, with the original or
a copy of any summons, complaint, process, notice, demand or pleading
involving an action or inaction within the scope of this section;
or
(5)
The employee has failed to cooperate fully with the defense.
E.
Methods of providing defense. The borough may provide any defense
required of it under this section through an attorney designated by
its insurance carrier or by employing other counsel. The borough shall
in no event be responsible for costs or attorney's fees incurred by
an employee unless it shall have agreed in writing to the terms of
the employee's representation.
F.
Control over litigation. Whenever the borough provides any defense
required of it under this section, the borough, through counsel, may
assume exclusive control over the representation of the public employee,
and such employee shall cooperate fully with the defense.
G.
Indemnification.
(1)
In any case where the borough is required to provide a defense under
this section, the borough shall pay or shall reimburse the public
employee for the following:
(a)
The amount of any bona fide settlement entered into by the borough
on behalf of the employee.
(b)
The amount of any judgments entered against the employee including,
but not limited to, exemplary or punitive damages resulting from the
employee's civil violation of state or federal law if, in the opinion
of the governing body of the borough, the acts committed by the employee
upon which the damages are based did not constitute actual fraud,
actual malice, willful misconduct or an intentional wrong.
(2)
In any case where the borough would be required to provide a defense
for the fact that such defense and indemnification is provided for
by insurance, the borough shall provide indemnification as aforesaid,
but only to the extent not covered by insurance or in excess of applicable
insurance.
