Except as hereinafter provided, the Township of Harrison, 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 chapter and the definitions 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 any person who is
not a natural person; any person while providing goods and 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 chapter, 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 of the Township of Harrison determines
that the act or omission did not occur within the scope of 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 of the Township of Harrison 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 chapter.
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 chapter by
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
Township under any appropriate insurance policy that requires the insurer
to provide defense.