[HISTORY: Adopted by the Township Committee
of the Township of South Harrison 3-14-2007 by Ord. No. 0-07-05. Amendments noted where applicable.]
This chapter shall hereafter be known and cited
as the "Indemnification of Municipal Employees, Appointees and Officials."
As used in this chapter, the following terms
shall have the meanings indicated:
A present or former municipal employee, appointee, official,
elected official or member of the various boards, agencies and commissions
of the Township of South Harrison, Gloucester County, New Jersey.
A.
The Township of South Harrison is hereby
authorized to provide for the defense of actions brought against its
officials and to indemnify such officials to the extent hereinafter
set forth, and shall save harmless and protect such persons from any
financial loss resulting from litigation.
B.
The obligation of the Township of South
Harrison to defend and indemnify its officials for acts or omissions
arising out of or in the course of the performance of the duties of
that person shall be limited to those circumstances under which the
Township itself would be liable for the acts of its officials under
the doctrine of respondeat superior.
C.
In the event an official or municipal officer
is required to defend an action relating to his position subsequent
to leaving office or municipal employment, the terms, conditions and
provisions of this chapter shall apply.
D.
In the event the official or municipal officer
is being sued for punitive damages, the Township of South Harrison
shall not indemnify said official or municipal officer with respect
to same but shall, to the extent provided herein, defend said official
or municipal officer in said action and defray the costs of said defense.
A.
The Township of South Harrison shall defray
the costs of defending any criminal action against any official (if
the underlying allegations of said criminal action reasonably relate
to or arise from the official's execution of official duties), provided
that:
(1)
It is authorized by state statute, municipal
ordinance or by resolution, and provided that the criminal proceedings
have been dismissed or result in a final disposition in favor of the
official.
(2)
The Township Committee determines that
there is no good cause to dismiss the official arising out of the
incident or related incidents of the criminal proceedings.
The Township Committee shall not approve indemnification
of the defense of any action if:
A.
The act or omission complained of was not
within the scope of employment or authority.
B.
The act or omission complained of was because
of actual fraud, willful misconduct or actual malice.
C.
The defense of the action or proceeding
would create a conflict of interest between the Township and the official
involved.
D.
There exists policies of insurance, either
obtained by the Township or by another, by virtue of which the municipal
official is entitled to a defense of the action in question from the
insurer. In the event the aforesaid insurance covers less than an
entire defense to the particular action, indemnification shall be
approved for that part of the defense not covered by insurance.
E.
The municipal official has failed to deliver
to the Township Committee, within 14 days of the time he or she is
served with any summons, complaint, process, notice, demand or pleading,
the original or copy of such document or thereafter fails to cooperate
with the Township in the defense of the matter.
F.
The official fails to request the defense
of any action.
G.
If the action was brought by the Township.
A.
If the Township Committee determines to
provide a defense as authorized in this section, it may do so by:
(1)
The Township Attorney, if the Township
Attorney and the official or municipal officer requiring defense determine
that there is no ethical conflict created by said representation.
(2)
Hiring an attorney of its choice and paying
the same directly; or
(3)
Reimbursing the municipal official for
reasonable attorney's fees expended or obligated to be expended by
such official in the defense of the action.
In addition to the provisions hereof, all officials
of the Township shall be entitled to defense and indemnification as
provided in N.J.S.A. 59:10-1 et seq., and N.J.S.A. 59:10A-1 et seq.
All costs of defense and legal fees to be provided
herein by the Township shall be calculated as reasonable prevailing
fees as charged in the County of Gloucester at the time they are incurred,
and the Township shall only be responsible to that extent. In the
event of a dispute as to the reasonableness of any fee to be paid
by the Township in defense of an official or municipal officer, as
provided herein, either party may seek review before the Superior
Court of New Jersey, Gloucester County, for adjudication.
