As used in this chapter, the following terms shall have the meanings
indicated:
OFFICIAL, OFFICER and EMPLOYEE
Any person elected or appointed to any public office, agency or body
of the City or employed or retained by the City for any office, agency or
body thereof, whether such person serves in a paid or unpaid capacity, and
shall include any member or officer of a volunteer fire company or force in
accordance with N.J.S.A. 40A:14-28 and any appointed fire police therefrom
pursuant to N.J.S.A. 15:8-4.
Whenever an official, officer or employee of the City is a defendant,
in either an official and/or individual capacity, in any action or legal proceeding
arising out of or incidental to the performance of his or her duties, the
governing body shall provide the official, officer or employee with the necessary
defense or, at his or her option, means for defense, of such action or proceeding
and shall also hold such official, officer or employee harmless from the payment,
settlement, or judgment resulting from the proceedings, except in the following
instances:
A. Where the action has been brought by the City itself
against the official, officer or employee or in a criminal proceeding instituted
as a result of a complaint on behalf of the City.
B. Where the official, officer or employee has been specifically
found by the trier of facts in proceedings, civil or criminal, to have acted
with actual fraud, actual malice, or willful misconduct.
C. Where the official, officer or employee is found to have
willfully acted in violation of the City personnel ordinances or regulations.
The City Council may refuse to provide for the defense and indemnification
if it determines that:
A. The act or omission was not within the scope of the person's
employment or official duties.
B. The defense of the action or proceedings by the City
would create a conflict of interest between the City and the official, officer
or employee.
C. It is not deemed appropriate pursuant to the authority
conferred in N.J.S.A. 59:10-4.
Nothing in this chapter shall be deemed to authorize the City to pay
for punitive or exemplary damages or damages resulting from the commission
of a crime.
An official, officer or employee shall not be entitled to indemnification
or the cost of defense under this chapter unless, within 10 days of the time
such official, officer or employee is served with any summons, order to show
cause, complaint, process, notice, demand or pleadings, he or she delivers
the same, or a certified copy thereof, to the City Clerk. Upon receipt of
same, the City Clerk shall forthwith notify all members of the City Council
and the City Solicitor of the receipt of same. The aforesaid time period for
receipt of notice of suit may be extended, for cause, by the affirmative vote
of a majority of the full membership of City Council.
In the event that this chapter conflicts with any existing negotiated
contract between the City and its employees, the terms of the contract applying
to the respective employee shall govern.