[HISTORY: Adopted by the Borough Council
of the Borough of Paramus 11-25-2003 by Ord. No. 03-33. Amendments noted where
applicable.]
Except as hereinafter provided, the Borough
of Paramus, hereinafter known as the Borough, shall, upon the request
of any present or former official, employee or appointee of the Borough,
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.
[Amended 7-9-2013 by Ord. No. 13-22]
The terms of this chapter and the definition 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:
A.
Any
person who is not a natural person;
B.
Any
person while providing goods or services of any kind under any contract
with the Borough except an employment contract;
C.
Any
person while providing legal or engineering services for compensation
unless said person is a full-time employee of the Borough, except
that the municipal prosecutor (or his/her alternates) shall be indemnified
pursuant to this chapter; and
D.
Any
person who, as a condition of his or her appointment or contract,
is required to indemnify and defend the Borough and/or secure insurance.
A.
The Borough shall provide for defense of and indemnify
any present or former official, employee or appointee of the Borough
who becomes a defendant in a civil action if the person or persons
involved:
B.
For purposes of this chapter, the duty and authority
of the Borough to defend and indemnify shall extend to a cross-claim
or counterclaim against said person.
The Borough 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 Borough may refuse to provide for the defense
and indemnification of any civil action referred to herein if the
Mayor and Council determines that:
A.
The act or omission did not occur within the scope
of a duty authorized or imposed by law;
B.
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
C.
The defense of the action or proceeding by the Borough
would create a conflict of interest between the Borough and the person
or persons involved.
In any other action or proceeding, including
criminal proceedings, the Borough may provide for the defense of a
present or former official, employee or appointee if the Mayor and
Council concludes that such representation is in the best interest
of the Borough and that the person to be defended acted or failed
to act in accord with the standards set forth in this chapter.
Whenever the Borough provides for the defense
of any action set forth herein and as a condition of such defense,
the Borough may assume exclusive control over the representation of
such persons defended and such person shall cooperate fully with the
Borough.
The Borough 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 Borough under any appropriate insurance
policy that requires the insurer to provide defense.
