It is the intent and purpose of this article
to provide for the defense of actions against and the indemnification
of public employees for civil actions, as permitted by N.J.S.A. 59:10-1
et seq.
For the purpose of this article, unless the
context clearly indicates a different meaning, the following words
and phrases shall have the meanings set forth:
INSURANCE
Coverage afforded by insurance policies of every kind whether
the premiums be paid by the Township, the public employee or someone
on his/her behalf.
PUBLIC EMPLOYEE
Any officer, employee, board or committee member appointed
or hired by the Township Manager whether full-time or part-time. The
term shall also include any person elected by the voters to fill any
official position in the Township or any person subsequently appointed
to fill such a position.
The Township shall provide for the defense of
any action brought against a public employee 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 an employee. Where the allegations against the public employee
include allegations that the act or failure to act was because of
actual fraud, willful misconduct or actual malice, the Township shall
provide for the defense on the express condition that the public employee
shall execute a reimbursement agreement that shall provide that in
the event the public employee shall be adjudicated or admit to have
acted or failed to act because of actual fraud, willful misconduct
or actual malice then, in such event, the public employee shall reimburse
the Township for all fees and costs incurred by the Township in providing
such defense
The Township shall not provide a defense to
a public employee when the Township Council determines that:
A. The act or omission was not within the scope of employment.
B. The defense of the action or proceeding would create
a conflict of interest between the Township and the public employee,
including:
(1) Where the legal proceeding involves a claim of misfeasance
or malfeasance in office or a claim of fraud, theft or misappropriation
of public funds.
(2) Where the legal proceeding is instigated or brought
by the municipality against the public employee.
C. Where defense of the action or proceeding is provided
for by an insurance policy or policies, whether obtained by the Township
or by any other person.
D. Where the legal proceeding is instigated or brought
by the public employee.
E. When public employee failed to deliver to the Township
Clerk, within 10 calendar days after the time he/she is served with
any summons, complaint, process notice, demand or pleading, the original
or a copy of the same.
F. The public employee has failed to cooperate fully
with the defense.
A public employee shall, within 10 calendar
days of the time he/she is served with any summons, complaint, process
notice, demand or pleading, deliver the original or a copy thereof
to the Township Clerk.
If the public employee files a counteraction
in the legal proceedings, the municipality shall not be obligated
to reimburse him/her for any attorney's fees or court costs attributed
to such counteraction.
To the extent that N.J.S.A. 40A:14-155 provides
broader indemnification to members of the municipality's Police Department,
that statute shall supersedes this article.
Any legal action which may be covered by this
article which has not been reduced to final judgment as of the date
of passage shall be covered by the terms of the article.