It is the intent and purpose of this article
to provide indemnification of, in defense of actions against, municipal
officials and public employees as provided for in N.J.S.A. 59:10-1
et seq.
As used in this article, the following terms
shall have the meanings indicated:
INSURANCE
Coverage afforded by insurance policies of every kind whether
the premiums shall be paid by the township, the municipal official
or someone on his behalf.
MUNICIPAL OFFICIAL AND EMPLOYEE
Any officer, employee, board member or committee member appointed
or hired by the Readington Township Committee to hold an office or
position in or for the township, whether full- or part-time. The term
shall also include any person elected by the voters of the Township
of Readington to fill any official position in the township or any
person subsequently appointed to fill such position.
The township shall provide for the defense of
any action brought against a municipal official or public employee
on account of any act or omissions in the scope of his employment.
This obligation shall extend to any cross actions, counterclaims or
cross complaints against such employee or municipal official.
The obligation of the township to provide a
defense shall not be applicable when the Township Committee determines
that:
A. The act or omission was not within the scope of employment.
B. The act or failure to act was because of actual fraud,
willful misconduct or actual malice.
C. The defense of the action or proceeding would create
a conflict of interest between the township and the public employee
or municipal official.
D. The defense of the action or proceeding is provided
for by an insurance policy or policies.
E. The municipal official or public employee failed to
deliver to the Township Administrator within 10 calendar days after
the time he was served with any summons, complaint, process, demand
or pleading.
F. The public employee or municipal official has failed
to cooperate fully with the defense.
G. The legal proceeding is instigated or brought by the
municipal official.
H. The legal proceeding is instigated or brought by the
Township of Readington against the municipal official.
I. The legal proceeding involves a question concerning
the election laws.
The township may provide any defense required
of it under this article through the Township Attorney or by employing
other counsel.
Whenever the township provides any defense required
of it under this article, the township through counsel may assume
exclusive control over the representation of the municipal official
or public employee, and such municipal official or public employee
shall cooperate fully with the defense.
To the extent N.J.S.A. 40A:14-155 provides broader
indemnification to members of the Township Police Department, that
statute shall supersede this article.