[HISTORY: Adopted by the Township Council of the Township
of Vernon 3-9-1998 by Ord. No.
98-2. Amendments noted where applicable.]
GENERAL REFERENCES
Personnel policies — See Ch. 89.
For the purpose of this chapter, unless the context clearly
indicates a different meaning, 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 Vernon, whether full or part time, appointed, elected
or hired.
Pursuant to the provisions of N.J.S.A. 59:10-1 et seq. and subject
to the provisions of this chapter, the Township of Vernon is authorized
to provide for the defense of actions brought against its municipal
officials and shall indemnify such officials to the extent permissible
by law and hereinafter set forth and shall save harmless and protect
such persons from financial loss resulting from litigation. Such indemnification
shall arise out of any action or legal proceeding of a noncriminal
nature directly related, or incidental to, the performance of the
duties of the position or office held by such municipal official.
The Township of Vernon may indemnify an official for exemplary or
punitive damages resulting from the official's civil violation
of state or federal law, if, in the opinion of the Council of the
Township of Vernon, the acts committed by the official upon which
damages are based did not constitute actual fraud, actual malice,
willful misconduct or an intentional wrong.
The municipal official shall not be entitled to indemnification
or reimbursement pursuant to this chapter unless, within 10 calendar
days of the time such official is served with any summons, complaint,
process, notice, demand or pleading, the official delivers the original
or a copy thereof to the Township Attorney. The municipal official
shall be obliged to cooperate with the Township in the conduct of
the official's defense. Whenever competent and disinterested
legal counsel is available to the Township through any insurance coverage,
the municipal official shall be obliged to be represented by such
counsel. If the Township wishes to use the Township Attorney or the
attorney for any board or committee of the Township to defend that
action, the municipal official shall be obligated to be represented
by that attorney unless there is a conflict of interest. The refusal
of the municipal official to cooperate with the Township shall terminate
the Township's obligation to reimburse the municipal official.
B.
A resolution shall be adopted appointing counsel for the defense
and determining counsel fees. The hourly rate shall not exceed the
then rate paid to the Township Attorney without a written resolution
of the Council.
C.
Nothing in this chapter shall preclude the Township and/or Township
Attorney from demanding and reviewing periodically any costs and attorney's
fees in connection with the defense of the municipal official. In
the event a dispute over attorney's fees arises, the Township
reserves the right to submit the dispute to the Fee Arbitration Committee
of the District or pursue any other course of legal action.
A.
The Township shall not be obligated to provide reimbursement in the
following instances:
(1)
Where the act or omission was not within the scope of employment
or authority;
(2)
Where the act or omission complained of was because of actual fraud,
willful misconduct or actual malice;
(3)
Where the legal proceeding is instigated or brought by the Township
of Vernon against the municipal official;
(4)
Where the legal proceeding involves a question concerning the election
laws;
(5)
Where the action is brought against the Township by the municipal
official.
B.
If any such legal proceeding shall be dismissed or finally determined
in favor of the municipal official or employee, the official or employee
shall be reimbursed for the expense of the defense, provided that:
The amount the Township is obliged to reimburse the municipal
official shall be reduced by any insurance coverage payable to the
municipal official by the net amount (that is, any recovery less attorneys
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.
If the legal proceeding is terminated by an agreement among
or between the parties, then the Township shall not be obligated to
reimburse the municipal official unless the Township approves the
settlement agreement.
If the municipal official files a counterclaim or crossclaim
in the legal proceedings, the Township shall not be obligated to reimburse
for any attorney fees or court costs attributable to such.
The obligation of the Township to reimburse a municipal official
for expenses shall arise upon final determination of the legal proceedings.
In its discretion the Township may reimburse a municipal official
for a portion of expenses incurred prior to a final decision.
To the extent N.J.S.A. 40A:14-155 provides broad indemnification
to members of the Township of Vernon Police Department, that statute
shall supersede this chapter.
This chapter shall take effect upon final passage and publication
according to law. Any legal proceeding which may be covered by this
chapter which has not been reduced to a final judgment as of the date
of passage shall be covered by the terms of this chapter.
This chapter does not provide for the defense and indemnification
of engineers, accountants, attorneys or other professionals who provide
services to the Township. Those professionals, who are not employed
by the Township on a full-time basis, must carry malpractice insurance
for themselves as a condition of employment by the Township.
