Except as hereinafter provided, the City of
North Wildwood, hereinafter known as the “City” shall,
upon the request of any present or former official, employee or appointee
of the City 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 or services
of any kind under any contract with the City except an employment
contract; any person while providing legal or engineering services
for compensation unless said person is a full-time employee of the
City; and any person who as a condition of his or her appointment
or contract is required to indemnify and defend the City and/or secure
insurance.
The City shall provide for defense of and indemnify
any present or former official, employee or appointee of the City
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 City 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 City to defend and indemnify shall extend to a cross-claim or
counterclaim against said person.
The City 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 City may refuse to provide for the defense and
indemnification of any civil action referred to herein if the City
Council of the North Wildwood 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 City would create
a conflict of interest between the City and the person or persons
involved.
In any other action or proceeding, including
criminal proceedings, the City may provide for the defense of a present
or former official, employee or appointee, if the City Council of
North Wildwood concludes that such representation is in the best interest
of the City and that the person to be defended acted or failed to
act in accord with the standards set forth in this chapter.
Whenever the City provides for the defense of
any action set forth herein and as a condition of such defense, the
City may assume exclusive control over the representation of such
persons defended and such person shall cooperate fully with the City.
The City 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 City under any appropriate insurance
policy that requires the insurer to provide defense.