[Adopted by the Mayor and Council of the
Borough of Sea Bright 3-4-2008 by Ord. No. 2-2008. Amendments noted where
applicable.]
A.
Except as hereinafter provided, the Borough of Sea
Bright shall, upon the request of any present or former official,
employee or appointee of the Borough of Sea Bright, provide indemnification
and legal defense for any civil action brought against said person
or persons arising from an act or omission falling within the scope
of his or her public duties, or filed against him or her as an official,
employee or appointee of the Borough of Sea Bright.
B.
The Borough of Sea Bright shall not indemnify any
person against the payment of punitive damages, penalties or fines
unless the governing body, in its opinion, concludes that the acts
committed upon which the punitive or exemplary damages are based do
not constitute actual fraud, actual malice, willful misconduct or
an intentional wrong.
C.
In any case asserted, whether it is for punitive damages
or penalties or not, the Borough of Sea Bright shall provide for the
legal defense of such claims in accordance with the standard set forth
hereinafter. The Borough of Sea Bright recognizes that the duty to
defend its officials, employees and appointees is greater than its
duty to indemnify in certain circumstances. Even so, the Borough of
Sea Bright may refuse to provide for the defense and indemnification
of any civil action referred to herein if the governing body of the
Borough of Sea Bright determines that:
(1)
The act or omission did not occur within the scope
of a duty authorized or imposed by law;
(2)
The act or failure to act was the result of actual
fraud, willful misconduct or actual malice of the person requesting
the defense and indemnification; or
(3)
The defense of the action or proceeding by the Borough
of Sea Bright would create a conflict of interest between the Borough
of Sea Bright and the person or persons involved.
The terms of this chapter and the definition
of official, employee and appointee are to be construed liberally
in order to effectuate the purposes of this chapter. However, these
terms shall not mean:
A.
Any person who is not a natural person;
B.
Any person while providing goods or services of any
kind with any contract with the Borough of Sea Bright except an employment
contract or professional services contract;
C.
Any person while providing legal or engineering services
for compensation when the claim is made by the Borough of Sea Bright
against the professional providing those services;
D.
Any person who has a condition of his or her appointment
or contract that they are required to indemnify and defend the Borough
of Sea Bright and to secure appropriate insurance.
A.
The Borough of Sea Bright shall provide for the defense
and indemnification of any present or former official, employee or
appointee of the Borough of Sea Bright who becomes a defendant in
a civil action if the person or persons involved:
B.
For purposes of this chapter, the duty and authority
of the Borough of Sea Bright to defend and indemnify shall extend
to a cross-claim or counterclaim against said person.
In any action or proceeding, including criminal
proceedings, the Borough of Sea Bright may provide for the defense
of a present or former official, employee or appointee if the Borough
of Sea Bright concludes that such representation is in the best interest
of the Borough of Sea Bright and that the person to be defended acted
or failed to act in accord with the standards set forth in this chapter.
Whenever the Borough of Sea Bright provides
for the defense of any action set forth herein, and as a condition
of such defense, the Borough of Sea Bright may assume exclusive control
over the representation of such person defended, and such person shall
cooperate fully with the Borough of Sea Bright.
The Borough of Sea Bright may provide for the
defense pursuant to this chapter 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 Borough of Sea Bright
under any appropriate insurance policy that requires the insurer to
provide a defense.
