Except as hereinafter provided, the City of North Wildwood, hereinafter
known as the “City” shall, upon the request of any present or
former official, employee or appointee of the City provide for indemnification
and legal defense of any civil action brought against said person or persons
arising from an act or omission falling within the scope of their public duties.
The terms of this chapter and the definitions of “official,”
“employee” and “appointee” are to be construed liberally
in order to effectuate the purposes of this chapter except that these terms
shall not mean any person who is not a natural person; any person while providing
goods or services of any kind under any contract with the City except an employment
contract; any person while providing legal or engineering services for compensation
unless said person is a full-time employee of the City; and any person who
as a condition of his or her appointment or contract is required to indemnify
and defend the City and/or secure insurance.
The City shall provide for defense of and indemnify any present or former
official, employee or appointee of the City who becomes a defendant in a civil
action if the person or persons involved acted or failed to act in a matter
in which the City has or had an interest; acted or failed to act in the discharge
of a duty imposed or authorized by law; and acted or failed to take action
in good faith. For purposes of this chapter, the duty and authority of the
City to defend and indemnify shall extend to a cross-claim or counterclaim
against said person.
The City shall not indemnify any person against the payment of punitive
damages, penalties, or fines, but may provide for the legal defense of such
claims in accord with the standards set forth herein. The City may refuse
to provide for the defense and indemnification of any civil action referred
to herein if the City Council of the North Wildwood determines that the act
or omission did not occur within the scope of a duty authorized or imposed
by law; the act or failure to act was the result of actual fraud, willful
misconduct or actual malice of the person requesting defense and indemnification;
or the defense of the action or proceeding by the City would create a conflict
of interest between the City and the person or persons involved.
In any other action or proceeding, including criminal proceedings, the
City may provide for the defense of a present or former official, employee
or appointee, if the City Council of North Wildwood concludes that such representation
is in the best interest of the City and that the person to be defended acted
or failed to act in accord with the standards set forth in this chapter.
Whenever the City provides for the defense of any action set forth herein
and as a condition of such defense, the City may assume exclusive control
over the representation of such persons defended and such person shall cooperate
fully with the City.
The City may provide for the defense pursuant to this chapter by authorizing
its attorney to act in behalf of the person being defended or by employing
other counsel for this purpose or by asserting the right of the City under
any appropriate insurance policy that requires the insurer to provide defense.