[HISTORY: Adopted by the Township Committee of the Township of Upper Deerfield 5-3-1979 by Ord. No. 209 (Ch. 19 of the 1977 Township Code). Amendments noted where applicable.]
Officers and employees — See Ch. 55.
Pursuant to P.L. 1972, c. 45, Section 4 (N.J.S.A. 59:10-4), the Township of Upper Deerfield does hereby authorize indemnification of any person now or in the future holding any office, position or full-time employment, elective or appointive, hereafter referred to as "employee."
The Township of Upper Deerfield shall, upon request, provide for the defense of any action, suit or proceeding, commenced or threatened, whether civil, criminal, administrative or investigative, including a cross-action, counterclaim or cross-complaint, against any employee on account of an act or omission in the scope of his employment and shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, provided that the act or the failure to act does not arise out of actual fraud, willful misconduct or actual malice.
The Township shall indemnify and save harmless each employee from financial loss resulting from any action described above in this chapter, including claims, losses, expenses, judgments, fines, attorney's fees and the amount paid in settlement thereof actually and reasonably incurred in connection therewith, to the extent permitted by law. Expenses thus incurred may be paid in advance of final disposition of the action. Nothing herein shall authorize the Township to pay for punitive or exemplary damages or damages resulting from the commission of a crime.
The word "employee" as used in this chapter shall apply to all full-time employees who regularly work 20 hours per week or more and shall not include any person working less than 20 hours per week. The word "employee" shall include each person, whether or not such person holds a professional license, being paid a fixed salary for the performance of his duties but shall not include any person furnishing professional or extraordinary unspecifiable services under separate agreement or contract. The word "employee" shall include persons formerly holding office or employment, provided that the events giving rise to a cause of action or claim hereunder occur after the effective date of this chapter.
The Township may employ counsel to provide a defense, pursuant to this chapter, and may purchase appropriate insurance as protection against any liability arising under 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, complaint, process, notice, demand or pleading, he delivers the same or a copy thereof to the Township Clerk, whereupon it shall be the duty of the Township Clerk to forthwith notify the Mayor and Township Attorney thereof, provided that such time period may be extended for cause by the affirmative vote of a majority of the full membership of the Township Committee.
An employee requesting defense of any action or claiming indemnification under this chapter shall cooperate fully and in good faith with the Township and with any attorney or attorneys engaged for this purpose in the preparation and presentation of a defense to such action. If such employee shall neglect, fail or refuse to cooperate as aforesaid, the Township Committee, after hearing on 10 days' written notice to the employee and for cause, may, by the affirmative vote of a majority of the full membership of the Township Committee, declare all rights created under this chapter for the benefit of such employee to be forfeited and terminated.