Except as hereinafter provided, the Borough of Alpine, hereinafter known
as the "Borough of Alpine," shall, upon the request of any present or former
official, employee or appointee of the Borough of Alpine, 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.
Pursuant to N.J.S.A. 59:10-4, the indemnification and defense provided
for in this chapter shall include exemplary or punitive damages resulting
from the employee's civil violation of state or federal law if, in the
opinion of the Mayor and Council of the Borough of Alpine, the acts committed
upon which the damages are based did not constitute actual fraud, actual malice,
willful misconduct or an intentional wrong.
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, except that 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 under any contract with the Borough of Alpine except an employment
contract; c) any person while providing legal or engineering services for
compensation unless said person is a full-time employee of the Borough of
Alpine; and d) any person who as a condition of his or her appointment or
contract is required to indemnify and defend the Borough of Alpine and/or
secure insurance.
The Borough of Alpine shall provide for defense of and indemnify any
present or former official, employee or appointee of the Borough of Alpine
who becomes a defendant in a civil action if the person or persons involved
a) acted or failed to act in a matter in which the Borough of Alpine has or
had an interest; b) acted or failed to act in the discharge of a duty imposed
or authorized by law; and c) acted or failed to take action in good faith.
For purposes of this chapter, the duty and authority of the Borough of Alpine
to defend and indemnify shall extend to a cross-claim or counterclaim against
said person.
In any other action or proceeding, including criminal proceedings, the
Borough of Alpine may provide for the defense of a present or former official,
employee or appointee if the Mayor and Council of the Borough of Alpine concludes
that such representation is in the best interest of the Borough of Alpine
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 Alpine provides for the defense of any action
set forth herein and as a condition of such defense, the Borough of Alpine
may assume exclusive control over the representation of such persons defended,
and such person shall cooperate fully with the Borough of Alpine.
The Borough of Alpine 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 Borough of Alpine under any appropriate insurance policy that requires
the insurer to provide defense.