Borough of Palmyra, NJ Chapter 13 Defense and Indemnification

[HISTORY: Adopted by the Mayor and Council of the Borough of Palmyra 5-14-2012 by Ord. No. 2012-12.[1] Amendments noted where applicable.]

GENERAL REFERENCES

Municipal Court — See Ch. 10.

Officers and employees — See Ch. 35.

Personnel — See Ch. 40.

[1] Editor's Note: This ordinance also repealed former Ch. 13, Defense and Indemnification, adopted 4-13-1981 by Ord. No. 1981-2 (Ch. 36A of the 1971 Code).

§ 13-1 Indemnification and legal defense provided.

Except as hereinafter provided, the Borough of Palmyra 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 their public duties.

§ 13-2 Exemplary or punitive damages; exception.

Pursuant to N.J.S.A. 59:10-4, the indemnification and defense provided for in this chapter shall include exemplary or punitive damages resulting from the employee's civil violation of state or federal law if, in the opinion of the governing body, the acts committed upon which the damages are based did not constitute actual fraud, actual malice, willful misconduct or an intentional wrong. Nothing in this section requires the Borough to pay for punitive or exemplary damages or damages resulting from the commission of a crime.

§ 13-3 Construal; definitions.

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.

§ 13-4 Civil actions; cross-claims and counterclaims.

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:

(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. 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.

§ 13-5 Defense in criminal proceedings and other actions.

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 governing body 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.

§ 13-6 Control of representation.

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.