[Adopted 11-4-1981]
For the purposes of this article, unless the
context clearly indicates a different meaning, the following words
and phrases shall have the meaning set forth:
Coverage afforded by insurance policies of every kind, whether
the premiums be paid by the Borough, the municipal official or someone
on his or her behalf.
Any officer, employee, board member or committee member appointed
or hired by the Mayor or Borough Council of the Borough of Glen Gardner
to hold an office or position in or for the Borough of Glen Gardner,
whether full- or part-time. The term shall also include any person
elected by the voters of the Borough of Glen Gardner to fill any official
position in the Borough, or any person subsequently appointed to fill
such position.
Subject to the provisions of this article, the
Borough of Glen Gardner shall reimburse a municipal official for all
expenses incurred (specially including reasonable attorney fees and
court costs) and all monetary judgments (including punitive damages)
imposed upon him or her in any action or legal proceeding of a noncriminal
nature arising out of or incidental to the performance of the duties
of the position or office held by such municipal official.
The Borough shall not be obligated to provide
reimbursement in the following instances:
A.Â
Where the legal proceeding is instigated or brought
by the municipal official.
B.Â
Where the legal proceeding involves a claim of misfeasance
or malfeasance in office, or a claim of fraud, theft or misappropriation
of public funds, and the municipal official is found liable for the
charge.
C.Â
Where the legal proceeding is instigated or brought
by the Borough of Glen Gardner against the municipal official.
D.Â
Where the legal proceeding involves a question concerning
the election laws.
The amount the Borough is obliged to reimburse
the municipal official shall be reduced by any insurance coverage
payable to the municipal official and by the net amount (recovery
less attorney fees, disbursements and court costs) of any money received
by the municipal official in any counter-action against the person
or persons bringing the action against him or her.
The municipal official shall be obliged to cooperate
with the Borough in the conduct of his or her defense. Whenever competent
and disinterested legal counsel is available to the Borough through
any insurance coverage, the municipal official shall be obliged to
be represented by such counsel. If the Borough wishes to use the Municipal
Attorney, or the attorney for any board or committee of the Borough
to defend the action, the municipal official shall be obligated to
be represented by that Attorney unless there be a conflict of interest.
The refusal of the municipal official to cooperate with the Borough
shall terminate the Borough's obligation to reimburse the municipal
official.
If the legal proceeding is terminated by an
agreement amongst the parties, then the Borough shall not be obligated
to reimburse the municipal official unless the Borough approves the
settlement agreement.
If the municipal official files a counter-action
in the legal proceedings, the Borough shall not be obligated to reimburse
him or her for any attorney fees or court costs attributable to such
counter-action.
The Borough may reimburse a municipal official
for a portion of expenses incurred prior to a final decision in a
legal proceeding, but the Borough shall be entitled to wait for a
final determination before being obligated to make any payments.
To the extent that N.J.S.A. 40A:14-155 provides
broader indemnification to members of the Borough's Police Department,
that statute shall supersede this article.
