Except as hereinafter provided, the Township
of South Hackensack, hereinafter known as the "Township," shall, upon
the request of any present or former official, employee or appointee
of the Township, 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 terms of this article and the definition
of official, employee and appointee are to be construed liberally
in order to effectuate the purposes of this article except that these
terms shall not mean any person who is not a natural person; any person
while providing goods or services of any kind under any contract with
the Township except an employment contract; any person while providing
legal or engineering services for compensation unless said person
is a full-time employee of the Township; and any person who, as a
condition of his or her appointment or contract, is required to indemnify
and defend the Township and/or secure insurance.
The Township shall provide for defense of and
indemnify any present or former official, employee or appointee of
the Township who becomes a defendant in a civil action if the person
or persons involved acted or failed to act in a matter in which the
Township has or had an interest; acted or failed to act in the discharge
of a duty imposed or authorized by law; and acted or failed to take
action in good faith. For purposes of this article, the duty and authority
of the Township to defend and indemnify shall extend to a cross-claim
or counterclaim against said person.
The Township 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 Township may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
Township Committee determines that the act or omission did not occur
within the scope of a duty authorized or imposed by law; 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 the defense of the action or proceeding by the Township would create
a conflict of interest between the Township and the person or persons
involved.
In any other action or proceeding, including
criminal proceedings, the Township may provide for the defense of
a present or former official, employee or appointee if the Township
Committee concludes that such representation is in the best interest
of the Township and that the person to be defended acted or failed
to act in accord with the standards set forth in this article.
Whenever the Township provides for the defense
of any action set forth herein and as a condition of such defense,
the Township may assume exclusive control over the representation
of such persons defended, and such person shall cooperate fully with
the Township.
The Township may provide for the defense pursuant
to this article by authorizing its Attorney to act on behalf of the
person being defended or by employing other counsel for this purpose
or by asserting the right of the Township under any appropriate insurance
policy that requires the insurer to provide defense.