Pursuant to N.J.S.A. 59:10-4, as same may be
amended from time to time, the Borough of Leonia does hereby authorize
indemnification of any person holding public office, position or employment,
elective or appointive, hereinafter referred to as the "employee."
The Borough of Leonia shall, upon application,
provide for the defense of any action, suit or proceeding, commenced
or threatened, whether civil, criminal, administrative or investigative,
including a cross-action counterclaim or cross complaint, against
any employee on account of any act or omission within the scope of
his employment and shall defray all costs of defending such action,
including reasonable counsel fees and expenses, together with costs
of appeal, if any, provided that the act or the failure to act does
not arise out of actual fraud, willful misconduct or actual malice
nor for violation of municipal or state ethics violations. At the
Borough's option, the Borough may, in lieu of providing for the defense
of an action, suit or proceeding, reimburse the employee for the employee's
costs of defending an action, suit or proceeding.
The Borough shall indemnify and save harmless
each employee from financial loss resulting from any action described
in this article, including claims, losses, expenses, judgments, fines,
attorney fees, court costs and expert or technical witness fees and
any amount paid in settlement thereof, and actually and reasonably
incurred in connection therewith, to the extent permitted by law.
Expenses thus incurred may be paid in advance of final disposition
of the action. Nothing herein shall authorize the Borough to pay for
punitive or exemplary damages or damages resulting from the commission
of a crime.
The Borough may employ legal counsel and expert
or technical personnel to provide a defense, pursuant to this article,
and may purchase appropriate insurance as protection against any liability
arising under this article.
An employee shall not be entitled to indemnification
or the cost of defense under this article 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 delivers the same
or a copy thereof to the Borough Clerk, whereupon it shall be the
duty of the Borough Clerk to forthwith notify the Mayor and Borough
Attorney thereof, provided that such time period may be extended for
cause by the affirmative vote of a majority of the full membership
of the governing body.
An employee requesting defense of any action
or claiming indemnification under this article shall cooperate fully
and in good faith with the Borough and with any attorneys, adjusters,
investigators or expert or technical settlement or other disposition
thereof. If such employee shall neglect, fail or refuse to cooperate
as aforesaid, rights created under this article for the benefit of
such employee to be forfeited and terminated by the affirmative vote
of a majority of the full membership of the governing body.
In the event that there exist any pending criminal
actions prior to the enactment of this article for which the Borough
would have provided indemnification, the Borough shall only provide
indemnification and reimbursement upon conclusion of the matter provided
that the charges are dismissed or terminated by the prosecution or
upon a finding of acquittal by a court of competent jurisdiction.
A successful application to the pretrial Intervention Program shall
not constitute grounds for indemnification and reimbursement. In the
event of indemnification by the Borough for a criminal action which
results in conviction or entry into the pretrial Intervention Program,
the Borough shall be entitled to reimbursement from the employee.
Any costs of previous criminal investigations not resulting in indictment
which would have been reimbursed by the Borough if this article had
been in effect at the time of an investigation shall now be reimbursed
by the Borough upon application.
All ordinances or parts of ordinances inconsistent
or in conflict with this article are hereby repealed as to said inconsistencies
and conflicts.
If any section, part of any section, or clause
or phrase of this article is for any reason held to be invalid or
unconstitutional, such decision shall not affect the remaining provisions
of this article. The governing body of the Borough of Leonia declares
that it would have passed the ordinance and each section and subsection
thereof, irrespective of the fact that any one or more of the subsections,
sentences, clauses or phrases may be declared unconstitutional or
invalid.
This article shall take effect immediately upon
passage and publication according to law.