The borough hereby finds that it is appropriate to provide for the indemnification
of borough employees in accordance with the provisions of N.J.S.A. 59:10-4,
which empowers local public entities to provide for such indemnification.
As used in this chapter, the following terms shall have the meanings
indicated:
EMPLOYEE
Any official, officer or member of the boards, agencies, commissions
or Council of the borough, or employee or servant, whether or not compensated,
full- or part-time, elected, appointed or employed, who is authorized to perform
any act or service; provided, however, that the term does not include an independent
contractor. The term shall also include persons formerly holding office or
employment; provided, however, that the events giving rise to a cause of action
or a claim for which indemnification is sought must have occurred after January
1, 1995, and any claim based on an event prior to that date shall not be covered
by this chapter.
An employee shall not be entitled to indemnification or the cost of
defense under this chapter, 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/she delivers the same, or a copy thereof, to the Borough
Clerk, who shall then forthwith notify the Mayor and Council of the pending
action; provided, however, that this time period may be extended for good
cause by the affirmative vote of a majority of the full membership of the
governing body.
The borough may provide any defense required of it under this chapter
through the Borough Attorney or by employing other counsel as it deems appropriate.
Whenever the borough provides any defense required of it under this
chapter, the borough, through counsel, may assume exclusive control over the
representation of the public employees and such employee shall cooperate fully
with the defense.
It shall be within the sole discretion of the governing body to decide
whether to pay for the costs of counsel beyond the Trial Court level.
An employee claiming indemnification under this chapter shall cooperate
fully and in good faith with the borough and with attorneys, adjusters, investigators
or experts or technical personnel engaged by the borough for the preparation
and presentation of a defense to such action, or the settlement or other disposition
thereof, and if the employee neglects, fails or refuses to cooperate, as herein
required, the governing body, after a hearing on 10 days' written notice
to the employee, and for cause, may declare all rights created under this
chapter for the benefit of such employee to be forfeited and terminated by
the affirmative vote of a majority of the full membership of the Borough Council.