[HISTORY: Adopted by the Borough Council
of the Borough of Shrewsbury 5-19-2008 by Ord. No. 914. Amendments noted where
applicable.]
GENERAL REFERENCES
Administration of government — See Ch. 5.
Except as hereinafter provided, the Borough
of Shrewsbury, 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 his or her public duties.
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 of Shrewsbury determines that:
A.
The act or omission did not occur within the scope
of a duty authorized or imposed by law;
B.
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
C.
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.
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:
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
of Shrewsbury 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.
