[Added in supp. no. 1 by directive from the Borough]
Subject to the limitations set forth in the subsequent sections of this chapter, whenever any civil action has been or shall be brought against any person (hereinafter referred to as "employee") holding or formerly holding any office, position or employment with the Borough of Ship Bottom for any action or omission arising out of or in the course of the performance of the duties of such office, position or employment, the Borough shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, and shall save harmless and protect such persons from any financial loss resulting from the litigation. The Borough solicitor, or another attorney selected by the mayor, with the advise and consent of the Borough council, shall represent the Borough official or employee.
[Added in supp. no. 1 by directive from the Borough]
The Borough shall not defray the costs of defending any criminal action against any municipal employee, except as may be authorized by state statute or other municipal ordinance or resolution of the Borough of Ship Bottom, and, in the those circumstances, the responsibility for defraying the costs of defending such employee shall be applicable only when such criminal proceedings shall be been dismissed or result in a final disposition in favor of the employee. However, should the Borough determine that there is good cause to dismiss the employee arising out of the incident or related incidents of the criminal prosecution, the Borough will not reimburse the employee or official for legal defense and costs of defending the suit, even through criminal proceedings against the employee may be dismissed or the employee found not guilty.
[Added in supp. no. 1 by directive from the Borough]
A. 
The obligation of the Borough of Ship Bottom to defend and indemnify its employees for acts or omissions arising out of or in the course of the performance of the duties of that person shall be limited to those circumstances under which the Borough itself would be liable for the acts of its employees under the doctrine of respondent superior, except that the Borough shall defend any such officer or employee sued under the Federal Civil Rights Act, provided that the mayor and/or council shall not have concluded that such act or omission was outside the scope of the responsibilities of said officer or employee.
B. 
Furthermore, the Borough shall not defend and save harmless any employee committing an intentional or willful act, or willful omission arising out of or in the course of the performance of the duties of such office, position or employment.
C. 
Also, specifically excluded from the provisions of this chapter is any municipal employee or official providing any form of professional medical services, such as a doctor and nurse, insofar as said civil action arises out or concerns those professional medical services.
D. 
The Borough shall not be responsible for the defense or indemnification of any official or employee of the Borough when the Borough council has determined that:
1. 
The act or omission was not within the scope of employee.
2. 
The act or failure to act was because of actual fraud, willful misconduct or actual malice.
3. 
The defense of the action or proceeding would create a conflict of interest between the Borough and the public employee.
4. 
The defense of the action or proceeding is provided for by an insurance policy or policies, whether obtained by the Borough or by any other person.
5. 
The public employee failed to deliver to the Borough clerk, within 10 calendar days after the time he or she is served with any summons, complaint, process, notice, demand or pleading, the original or a copy of the same.
6. 
The public employee has failed to cooperate fully with the defense.
[Added in supp. no. 1 by directive from the Borough]
Whenever the Borough provides any defense required of it under this chapter, the Borough, through counsel, may assume exclusive control over the representation of the public employee, and such employee shall cooperate fully with the defense.
[Added in supp. no. 1 by directive from the Borough]
A. 
In any case where the Borough is required to provide a defense under this chapter, the Borough shall pay or shall reimburse the public employee for:
1. 
Any bona fide settlement agreements entered into by the employee;
2. 
Any judgments entered against the employee;
3. 
If the Borough has failed to provide such required defense, all costs of defending the action, including reasonable counsel fees and expenses, together with costs of any appeal.
B. 
In addition, in any case where the Borough would be required to provide a defense under this chapter, except for the fact that such defense is provided for by insurance, the Borough shall provide indemnification as aforesaid, but only to the extent not covered by insurance.
[Added in supp. no. 1 by directive from the Borough]
Nothing in this chapter shall authorize the Borough to pay for punitive or exemplary damages resulting from the commission of a crime.