[Adopted 9-16-1986 by Ord. No. 18-86]
For the purposes of this article, unless the context clearly
indicates a different meaning, the following words and phrases shall
have the meanings set forth herein:
Coverage afforded by insurance policies of every kind, whether
the premiums are paid by the Borough, the municipal official or someone
on his behalf.
Any officer, employee, board member or committee member appointed
or hired by the Mayor or Borough Council of the Borough of Washington,
whether full-time or part-time. The term shall also include any person
elected by the voters of the Borough of Washington to fill any official
position in the Borough or any person subsequently appointed to fill
such position.
A.
Subject to the provisions of this article, the Borough of Washington
shall reimburse a municipal official for all expenses incurred, specifically
including reasonable attorneys' fees and court costs, and all monetary
judgments, excluding punitive damages, imposed upon him 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.
B.
Exceptions. The Borough shall not be obligated to provide reimbursement
in the following instances:
(1)
Where the legal proceeding is instigated or brought by the municipal
official.
(2)
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.
(3)
Where the legal proceeding is instigated or brought by the Borough
of Washington against the municipal official.
(4)
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 by the net amount (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.
A municipal official shall not be entitled to indemnification
or reimbursement pursuant to this article unless, within 10 calendar
days of the time he is served with any summons, complaint, process,
notice, demand or pleading, he delivers the original or a copy thereof
to the Municipal Attorney. The Municipal Attorney shall be obliged
to cooperate with the Borough in the conduct of the municipal official's
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
is 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 obliged to reimburse the
municipal official unless the Borough approves the settlement agreement.
If the municipal official files a counteraction in the legal
proceedings, the Borough shall not be obliged to reimburse him for
any attorneys' fees or court costs attributable to such counteraction.
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 of Washington's Police Department,
that statute shall supersede this article.
