Borough of Dumont, NJ Chapter 25 Defense and Indemnification

[HISTORY: Adopted by the Mayor and Council of the Borough of Dumont 7-17-2001 by Ord. No. 1263. Amendments noted where applicable.]

GENERAL REFERENCES

Municipal Court — See Ch. 16.

Ethics — See Ch. 31.

Officers and employees — See Ch. 52.

§ 25-1 Request for defense; construal of provisions.

A. Except as hereinafter provided, the Borough of Dumont 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.

B. For the purposes of this chapter, the Borough's duty and authority to defend and indemnify shall extend to a claim, cross-claim or counterclaim against said person.

C. The terms of this chapter and the definitions of official, employee and appointee are to be construed liberally in order to effectuate the purposes of this chapter.

D. The Borough may indemnify a person for exemplary or punitive damages resulting from that person's civil violation of state or federal law if, in the opinion of the Borough Council, the acts committed by the person to be indemnified upon which the damages are based did not constitute actual fraud, actual malice, willful misconduct or an intentional wrong.

§ 25-2 Conditions.

A. The Borough shall provide for the defense of and indemnify the defendant or defendants in a civil action if the person or persons involved:

(1) Acted or failed to act in a matter in which the Borough has or had an interest;

(2) Acted or failed to act in the discharge of a duty imposed or authorized by law; and

(3) Acted or failed to take action in good faith.

B. The Borough may refuse to provide for the defense and indemnification of any civil action referred to herein if the Borough Council determines that:

(1) The act or omission did not occur within the scope of a duty authorized or imposed by law;

(2) 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

(3) 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.

§ 25-3 Defense determination by Borough Council.

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 § 25-2 of this chapter.

§ 25-4 Control by Borough over defense.

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 person defended and such person shall cooperate fully with the Borough.

§ 25-5 Defense by Borough Attorney or other counsel.

The Borough may provide for the defense pursuant to this chapter by authorizing the Borough Attorney to act in behalf of the person being defended or by employing other counsel for this purpose or by asserting the Borough's right under any appropriate insurance policy which requires the insurer to provide the defense.