Except as hereinafter provided, the Borough of Pine Beach, hereinafter
known as the Borough shall, upon the request of any present or former
official, employee or appointee of the Borough 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 Borough 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 Borough may refuse to provide for the defense and indemnification
of any civil action referred to herein if the Mayor and Council 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 Borough would create a conflict of
interest between the Borough and the person or persons involved.
Definitions. The terms of this chapter and the definition 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 Borough
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 Borough; and d) any person who as a condition of his
or her appointment or contract is required to indemnify and defend
the Borough and/or secure insurance.
Civil action. The Borough shall provide for defense of and indemnify
any present or former official, employee or appointee of the Borough
who becomes a defendant in a civil action if the person or persons
involved a) acted or failed to act in a matter in which the Borough
has or had an interest; b) acted or failed to act in the discharge
of a duty imposed or authorized by law; and c) acted or failed to
take action in good faith. For purposes of this chapter, the duty
and authority of the Borough to defend and indemnify shall extend
to a cross-claim or counterclaim against said person.
Criminal proceedings. In any other action or proceeding, including
criminal proceedings, the Borough may provide for the defense of a
present or former official, employee or appointee, if the Mayor and
Council concludes that such representation is in the best interest
of the Borough and that the person to be defended acted or failed
to act in accord with the standards set forth in this chapter.
Control of representation. Whenever the Borough provides for the
defense of any action set forth herein as a condition of such defense,
the Borough may assume exclusive control over the representation of
such persons defended and such person shall cooperate fully with the
Borough.
The Borough may provide for the defense pursuant to this chapter
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 Borough under any appropriate insurance policy that requires
the insurer to provide defense.