[HISTORY: Adopted by the Mayor and Council of the Borough of Ridgefield 4-9-2001 by Ord. No. 1739.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 23, Defense and Indemnification of Officials and Employees, adopted 8-15-1983 by Ord. No. 1242.
All public officials and employees of the Borough (hereinafter "Borough officials") who are named as defendants in a civil suit or other legal proceeding or are charged with a criminal offense, on account of any act or omission which arises through the Borough official's official capacity or through the Borough official's individual capacity for events arising out of, or connected directly or indirectly, with the performance of the Borough official's duties as an official or employee of the Borough, shall be conditionally indemnified for costs, expenses and damage awards incurred in connection with said suits or prosecutions, but only as provided for in this chapter.
Any Borough official who is named as a defendant in any civil suit or criminal prosecution, either in his or her official capacity or individual capacity, for events arising out of or connected, directly or indirectly, with the performance of their duty as an official employee of the Borough, shall promptly advise the governing body and the Borough Attorney that said action has been commenced and shall supply to the governing body and the Borough Attorney a copy of any and all pleadings pertaining to said suit or criminal charge. The Borough official shall thereafter cooperate with the appropriate Borough agents, servants and employees in effectuating the provisions of this chapter.
As to civil suits or other legal proceedings in which a Borough official is named defendant, the Borough shall defend and provide a defense for said official or employee, either through the Borough Attorney or his designee, through legal counsel provided by the Borough's insurance carrier or by permitting the Borough official to select private legal counsel of the official's choosing. In those instances where the public official is authorized by the Mayor and Council to retain private legal counsel, the Borough will pay the reasonable cost of same, including investigation, costs, and reasonable legal fees, as further defined in this chapter.
As to civil suits or other legal proceedings in which a Borough official is a named defendant, the Borough shall indemnify and hold harmless the Borough official for all damage awards, verdicts and other forms of civil penalty or judgment unless it is determined that the Borough should not be responsible on account of the factors set forth in § 23-7A through E.
[Amended 8-19-2013 by Ord. No. 2231]
The Borough will not provide a defense for Borough officials who are charged with criminal offenses. The Borough shall, however, reimburse the Borough official the reasonable cost of the defense of the criminal prosecution, including investigation, costs and reasonable legal fees, as further defined in this chapter, provided that the prosecution is terminated by a dismissal or finding of not guilty as to the Borough official.
The Mayor and Council, with the advice of the Borough Attorney, shall determine what costs, expenses and legal fees are reasonable under the facts and circumstances of each case. For purposes of this indemnification policy, the Borough will pay only legal fees which are based on an hourly rate and will not pay retainers to attorneys or investigators. The Mayor and Council will determine, on a case-by-case basis, the reasonable hourly rate to be paid to the independent legal counsel that is authorized under this chapter.
[Amended 5-11-2009 by Ord. No. 2086]
The Borough will not provide a defense and indemnification of officials and employees in the following instances:
A. 
It is determined by a court of competent jurisdiction, whether by final judgment in a civil suit or conviction of a criminal offense, that the act or omission of the Borough official constitutes a criminal offense, actual fraud, actual malice, willful misconduct or an intentional act or omission.
B. 
It is determined by a court of competent jurisdiction that the act or omission of the Borough official is outside the scope of the official's employment or official capacity.
C. 
The action or proceeding has been brought by the Borough itself against the Borough official.
D. 
The Borough official has failed to substantially cooperate with the Borough and its agents, servants and employees in connection with the potential claim, suit or proceeding and the defense thereof.
E. 
Defense and indemnification is not deemed appropriate by the Mayor and Council pursuant to the authority contained in N.J.S.A. 59:10-1 et seq.
F. 
In those instances where the Borough has elected to provide a defense or costs associated therewith for the Borough official and it is later determined that the payment of such costs for the official was improper, the Borough official shall promptly reimburse to the Borough the full amount of said payments by the Borough. In no event shall the Borough be liable to pay any punitive damage award against any official or employee for any reason.
G. 
The Borough official has failed, for any reason, to provide the governing body with an original copy of any document giving initial notice to the official of any claim or potential claim within 10 calendar days from the official’s receipt of such notice of claim or potential claim. These documents may include but are not limited to a summons, complaint, process, notice, demand or pleading, or such other document which would give the official reason to believe he or she may be subject to a potential claim.
When the Borough provides a defense of a Borough official pursuant to this chapter, the Borough may assume exclusive control of the representation of the Borough official. In those instances where the Borough permits the Borough official to retain independent legal counsel, the Mayor and Council may limit the extent of the participation of the independent legal counsel in the litigation if, in the opinion of the Mayor and Council, such limitation is reasonable under the circumstances and will not prejudice the Borough official.
Nothing contained herein shall prevent the Borough from bifurcating its treatment as to any Borough official, both as to whether and how it will provide a defense and/or indemnification. Accordingly, the Borough may provide a defense and/or indemnification for some allegations against a Borough official, but not as to others, and may provide the defense in different forms as to difficult allegations.
[Added 5-14-2001 by Ord. No. 1743]
Nothing provided herein is intended to conflict with the provisions of New Jersey statutes as those statutes pertain to the defense and indemnification of police officers, firefighters and the Municipal Clerk. To the extent that the provisions of this chapter are in conflict with New Jersey statutes as they pertain to police officers, firefighters and the Municipal Clerk, the provisions of applicable New Jersey statutes, as interpreted by the courts of this state, shall take precedence and prevail.