The Borough hereby finds that it is appropriate to provide for the indemnification
and defense of Borough employees, appointees, and officials in accordance
with the provisions of N.J.S.A. 59:10-4 and applicable law which empowers
local public entities to provide for such indemnification.
As used in this chapter, the following term shall have the meanings
indicated:
EMPLOYEE
Any official, officer or member of the Borough's agencies, commissions
or Council of the Borough, or employee or servant, whether or not compensated,
full- or part-time, elected, appointed or employed, who is authorized to perform
any act or service; provided, however, that the term does not include an independent
contractor. The term shall also include persons formerly holding office or
employment. The term employee is to be construed liberally in order to effectuate
the purposes of this chapter.
An employee shall not be entitled to indemnification or the cost of
defense under this chapter unless, within 10 days of the time such employee
is served with any summons, order to show cause, complaint, process, notice,
demand or pleading, he/she delivers the same, or a copy thereof, to the Borough
Clerk, who shall then forthwith notify the Mayor and Council of the pending
action; provided, however, that this time period may be extended for good
cause by the affirmative vote of a majority of the full membership of the
governing body.
The Borough may provide any defense required of it under this chapter
through the Borough Attorney or by employing other counsel as it deems appropriate.
Where a conflict of interest may exist, the public employee may engage his
or her own counsel, which counsel shall be subject to the reasonable satisfaction
of the governing body. Such engagement shall be further subject to an appropriate
agreement between the Borough and the public employee.
Except as otherwise provided in this chapter, whenever the Borough provides
any defense required of it under this chapter, the Borough, through counsel,
may assume exclusive control over the representation of the public employee,
and such employee shall cooperate fully with the defense.
In the event that a judgment is entered in favor of the public employee
at the trial court level and the adverse party files an appeal therefrom,
the governing body shall be obligated to pay the costs of counsel beyond the
trial court level. In the event that an adverse judgment is entered against
the public employee at the trial court level and the public employee or adverse
party seeks to appeal therefrom, it shall be within the sole discretion of
the governing body to decide whether to pay for the costs of counsel beyond
the trial court level.
An employee claiming indemnification under this chapter shall cooperate
fully and in good faith with the Borough and with attorneys, adjusters, investigators
or experts, or technical personnel engaged by the Borough for the preparation
and presentation of a defense to such action, or the settlement or other disposition
thereof, and if the employee neglects, fails or refuses to cooperate as herein
required, the governing body, after a hearing on 10 days' written notice to
the employee, and for cause, may declare all rights created under this chapter
for the benefit of such employee to be forfeited and terminated by the affirmative
vote of a majority of the full membership of the Borough Council.