[HISTORY: Adopted by the Borough Council
of the Borough of Medford Lakes 11-29-2007 by Ord. No. 540. Amendments
noted where applicable.]
Except as hereinafter provided, the Borough
of Medford Lakes, hereinafter known as the "Borough," shall upon the
request of any present or former official, employee or appointee of
the Borough 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 indemnification
obligation provided herein shall be limited to an amount equal to
all then existing and applicable policies of insurance maintained
by the Borough for such purposes.
The Borough 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 Borough may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
Borough Council 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 Borough would create
a conflict of interest between the Borough and the person or persons
involved. 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 Borough Council, 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 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; and
D.
Any person who as a condition of his or her appointment
or contract is required to indemnify and defend the Borough and/or
secure insurance.
A.
The Borough shall provide for defense of and indemnify
any present or former official, employee or appointee of the Borough
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 Borough 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.
B.
For purposes of this chapter, the duty and authority
of the Borough 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 may provide for the defense of a
present or former official, employee or appointee, if the Borough
Council concludes that such representation is in the best interest
of the Borough 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 provides for the defense
of any action set forth herein and as a condition of such defense,
the Borough may assume exclusive control over the representation of
such persons defended, and such person shall cooperate fully with
the Borough.
The Borough 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 under any appropriate insurance
policy that requires the insurer to provide defense.
