[Ord. #90-06]
For the purposes of this Chapter, unless the context clearly
indicates a different meaning:
Shall mean a present or former municipal employee, appointee,
official, elected official or member of the various boards, agencies
and commissions of the Township of Hope whether full or part time,
appointed, elected or hired.
[Ord. #90-06]
Pursuant to the provisions of N.J.S.A. 59:10-1 et seq. and subject
to the provisions of this Chapter, the Township of Hope is authorized
to provide for the defense of actions brought against its municipal
officials and shall indemnify such officials to the extent permissible
by law and hereinafter set forth and shall save harmless and protect
such persons from financial loss resulting from litigation. Such indemnification
shall arise out of any action or legal proceeding of a non-criminal
nature directly related, or incidental to, the performance of the
duties of the position or office held by such municipal official.
The Township of Hope may indemnify an employee for exemplary or punitive
damages resulting from the employee's civil violation of State
or federal law, if, in the opinion of the Committee of the Township
of Hope, the acts committed by the employee upon which damages are
based did not constitute actual fraud, actual malice, willful misconduct
or an intentional wrong.
[Ord. #90-06]
The municipal official shall not be entitled to indemnification
or reimbursement pursuant to this Chapter unless within ten calendar
days of the time such official is served with any summons, complaint,
process, notice, demand or pleading, the official delivers the original
or a copy thereof to the Township Attorney. The municipal official
shall be obliged to cooperate with the Township in the conduct of
the official's defense. Whenever competent and disinterested
legal counsel is available to the Township through any insurance coverage,
the municipal official shall be obliged to be represented by such
counsel. If the Township wishes to use the Township Attorney or the
attorney for any board or committee of the Township to defend that
action, the municipal official shall be obligated to be represented
by that attorney unless there is a conflict of interest. The refusal
of the municipal official to cooperate with the Township shall terminate
the Township's obligation to reimburse the municipal official.
[Ord. #90-06]
If the Township Committee determines to provide a defense as
authorized by this Chapter, it may do so by:
a.Â
Hiring an attorney of its choice; or
b.Â
Reimbursing the municipal official for reasonable attorney's
fees and costs incurred in connection with the defense of the act.
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A resolution shall be adopted appointing counsel for the defense
and determining counsel fees. The hourly rate shall not exceed the
then rate paid to the Township Attorney without a written resolution
of the Committee.
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Nothing in this Chapter shall preclude the Township and/or Township
Attorney from demanding and reviewing periodically any costs and attorney's
fees in connection with the defense of the municipal official. In
the event a dispute over attorney's fees arises, the Township
reserves the right to submit the dispute to the Fee Arbitration Committee
of the District or pursue any other course of legal action.
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[Ord. #90-06]
The Township shall not be obligated to provide reimbursement
in the following instances:
a.Â
Where the act or omission was not within the scope of employment
or authority;
b.Â
Where the act or omission complained of was because of actual fraud,
willful misconduct or actual malice;
c.Â
Where the legal proceeding is instigated or brought by the Township
of Hope against the municipal official;
d.Â
Where the legal proceeding involves a question concerning the election
laws;
e.Â
Where the action is brought against the Township by the municipal
official.
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If any such legal proceeding shall be dismissed or finally determined
in favor of the municipal official or employee, the official or employee
shall be reimbursed for the expense of the defense providing (a) the
employee proves that the act or omission was within the scope of employment
or authority and (b) the Township fails to prove the act or omission
complained of was because of actual fraud, willful misconduct or actual
malice.
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[Ord. #90-06]
The amount the Township is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official by the net amount (that is, any recovery less attorney's
fee, disbursements and Court costs), of any money received by the
municipal official in any counteraction against the person or persons
bringing the action against him.
[Ord. #90-06]
If the legal proceeding is terminated by an agreement among
or between the parties, then the Township shall not be obligated to
reimburse the municipal official unless the Township approves the
settlement agreement.
[Ord. #90-06]
If the municipal official files a counteraction in the legal
proceedings, the Township shall not be obligated to reimburse for
any attorney fees or court costs attributable to such counteraction.
[Ord. #90-06]
The Township may in its discretion agree to pay the expenses
of providing legal counsel pursuant to this Chapter prior to a final
determination of the legal proceedings or may elect to reimburse a
municipal official only after a final determination of the legal proceedings.
If the Township elects to pay the expenses incurred in providing a
defense, or any part thereof, prior to a final determination of the
legal proceedings, the municipal official shall reimburse the Township
for the sums paid out in the event that it is determined that the
Township was not obligated to provide for such defense pursuant to
this Chapter. The municipal official shall enter into an agreement
with the Township providing for said reimbursement prior to payment
of these expenses by the Township.
[Ord. #90-06]
To the extent N.J.S.A. 40A:14-155 provides indemnification to
members of a police department, that statute shall supersede this
Chapter.
This Chapter shall take effect upon final passage and publication
according to law. Any legal proceeding which may be covered by this
Chapter which has not been reduced to a final judgment as of the date
of passage shall be covered by the terms.
