[Adopted 3-8-2023 by Ord. No. 2023-04]
It is the legislative intent of the Borough of Lindenwold to indemnify all employees and appointed and elected officials of the Borough of Lindenwold from claims resulting from their appointment and service as officials of the Borough of Lindenwold in the course of their service, appointment, election or employment thereof as per N.J.S.A. 59:10-4.
The Borough of Lindenwold shall indemnify, defend, and hold harmless municipal employees and appointed and elected municipal officials for any claim made against them as a result of an alleged negligent act or omission, provided that said claim and/or alleged act or omission occurred or accrued during the course of their term of office or employment with the Borough of Lindenwold, and arose out of and is directly related to the official's or employee's lawful exercise of authority in the furtherance of their official duties with the Borough of Lindenwold.
The Borough of Lindenwold shall pay on behalf of the aforesaid and hereinbelow defined municipal employees and/or officials for all losses which said officials and/or employees shall be legally obligated to pay for any civil claim made against them as a result of a negligent act or omission, provided that the claim is made for an occurrence or claim which occurred or accrued during the period of their appointment and/or employment with the Borough of Lindenwold. In the event that a civil lawsuit is filed against said official and/or employee, legal counsel shall be retained by the Borough at no expense to the said employee and/or official.
The Borough of Lindenwold shall indemnify and pay any loss arising from any civil claim resulting from a negligent act or omission made against the estate, heirs, legal representatives or assigns of any municipal employee or public official who are acting in the aforesaid capacity at the time of their appointment or employment with the Borough of Lindenwold.
As used in this article, the following terms shall have the meanings indicated:
MUNICIPAL OFFICIAL and MUNICIPAL EMPLOYEE
Those persons appointed or employed by the Borough of Lindenwold, including any board, commission or unit of the Borough of Lindenwold, which is defined below. "Municipal employee" or "municipal official" shall not mean and does not apply to any person working on a retainer or contractual agreement generally known as an "independent contractor."
PUBLIC OFFICIAL and PUBLIC EMPLOYEE
All persons who were, now are or shall be lawfully elected or lawfully appointed members of the Borough of Lindenwold, including any board, commission or authority of the Borough of Lindenwold, and shall include such members of such commissions, boards or other units operated by and under the jurisdiction of such governing body and within an appointed total operating budget, including but not limited to the Joint Land Use Board, Lindenwold Park and Recreation Commission, Lindenwold Library Advisory Board, Lindenwold Emergency Management Committee or any future Lindenwold commission.
WRONGFUL ACTS
Any error, negligent act or omission, neglect, or unintentional breach of duty by a municipal employee or official, acting in their capacity as a public official or employee of the Borough of Lindenwold, and which arose out of and is directly related to the official's or employee's lawful exercise of authority in the furtherance of their official duties.
In the event that a Borough employee or official, as defined in § 34-55 above, is indicted or otherwise charged with a criminal or quasi-criminal offense, and in the further event that said individual is acquitted or, in the alternative, if the charges are dropped or dismissed with prejudice by the prosecuting authority, then and only in these two events shall the Borough of Lindenwold indemnify said individual for legal fees in defending the criminal action and accrued back salary owed to the individual by virtue of a suspension, if applicable. This section creating indemnification shall only apply in those criminal or quasi-criminal matters which arise out of or occur in the course of the municipal employee's or official's appointment with the Borough of Lindenwold. In the event that any criminal or quasi-criminal charge is filed against said municipal official or municipal employee, as defined in § 34-55, which do not arise out of the employment or appointment with the Borough of Lindenwold, no indemnification coverage will be issued by the Borough of Lindenwold.
The provisions of this section shall not apply in the following circumstances:
A. 
For any action, disciplinary proceeding, or other legal proceeding brought, prosecuted, and or initiated by the Borough of Lindenwold against the official or employee.
B. 
Where there has been a finding by a trier of fact in any civil or criminal proceeding that the employee or official has committed an act of fraud, acted with malice, or otherwise engaged in willful misconduct.
C. 
Where the official or employee is determined to have violated any provision of the Local Government Code of Ethics, N.J.S.A. 40A:9-22.5.
D. 
Where the action or legal proceeding does not arise out of the official's or employee's lawful exercise of authority in the furtherance of their official duties.
E. 
Where any insurance coverage is available for payment or defense of the claim.
F. 
For any judgment for punitive or exemplary damages unless the governing body first determines that the official's or employee's actions did not constitute actual fraud, actual malice, gross misconduct, or an intentional tort.
G. 
In the event an official or employee engages an attorney without the prior approval of the Borough, all attorney fees and costs so incurred shall be the sole responsibility of that official or employee.