[Adopted 2-24-1986 by Ord. No. 5-1-86]
As used throughout this Article, the following
terms shall have the meanings indicated:
Coverage afforded by insurance policies of every kind, whether
the premiums are paid by the municipality, the municipal official
or someone on his behalf.
The Township of Kingwood.
Any or all present or former elected or appointed members
of the governing body; present or former appointees and employees
of the municipality; members of the various boards, agencies and commissions
of the Township of Kingwood; or any person subsequently appointed
to fill any such position.
Pursuant to statutory authority, the municipality
shall provide indemnification to its municipal officials in accordance
with the indemnification provisions applicable to all state employees.
The municipality shall provide for the defense
of actions brought against its municipal officials and indemnify such
officials to the extent hereinafter set forth and shall save harmless
and protect such persons from any financial losses resulting from
litigation.
Said indemnification shall apply to any acts
or omissions of said municipal officials, whether intentional or not,
occurring within the scope of their employment, or, if a municipal
official was or is a party or is threatened to be made a party to
any threatened, pending or completed action suit or proceeding, whether
criminal, civil, administrative or investigative, by reason of the
fact that he/she or she was an official of the municipality, the municipality
shall indemnify said municipal official and save him or her harmless
from any claims, losses, expenses, attorney's fees, judgments, fines
and amounts paid in settlement actually and reasonably incurred by
him or her in connection with such action, suit or proceeding to the
full extent permitted by the laws of the State of New Jersey, except
as modified herein.
The provisions of this Article shall not be
applicable in the following instances:
A.
For an act or omission which was not within the scope
of employment of the municipal official.
B.
For an act or failure to act which was because of
actual fraud, willful misconduct or actual malice.
C.
For the defense of an action or proceeding, which
defense is provided for by an insurance policy or policies, whether
obtained by the municipality or any other persons.
D.
Where the municipal official fails to deliver to the
Clerk of the municipality, within 15 days after he/she or she is served
with any summons, complaint, process, notice, demand or pleading,
the original or a copy of the same.
E.
Where the municipal official has failed to cooperate
fully with the defense.
F.
Where the official has failed to request the defense
of any action.
G.
Where the action was brought by the municipality against
the municipal official.
The municipality shall defray the cost of defending
any criminal action against any official, provided that it is authorized
by state statute, municipal ordinance or resolution, and provided
that the criminal action has been dismissed or results in a final
disposition exonerating the official.
Nothing herein shall authorize the municipality
to pay for punitive or excessive damage or damages resulting from
the conduct of a municipal official, where such conduct was an act
of actual fraud, willful misconduct or actual malice, or from the
commission of a crime.
Whenever the municipality provides any defense
required of it under this Article, the municipality, through counsel,
may assume exclusive control of the representation of the municipal
official, and such official shall cooperate fully with the defense.
If the legal proceeding is terminated by an agreement amongst the
parties, then the municipality shall not be obligated to reimburse
the municipal official unless the municipality approves the settlement
agreement.
A.
In any case where the municipality is required to
provide a defense under this Article, it shall do so by:
B.
In any case, where the municipality shall be required
to provide a defense under this Article, except for the fact that
such defense is provided for by insurance, the municipality shall
provide indemnification as aforesaid, but only to the extent not covered
by insurance.
C.
The municipality may reimburse a municipal official
for a portion of expenses incurred prior to a final decision in a
legal proceeding, but the municipality shall be entitled to wait for
a final determination before being obligated to make any payments.
If the municipal official files a counteraction
in the legal proceedings, the municipality shall not be obligated
to reimburse him for any attorney's fees or court costs attributable
to such counteraction. The amount the municipality is obliged to reimburse
the municipal official shall be reduced by the net amount (recovery
less attorney fees, disbursements and court costs) of any money received
by the municipal official in any counteraction against the person
or persons bringing the action against him.
