§ 4-83. Indemnification and defense of public employees.

A. 

Intent and purpose. It is the intent and purpose of this section to provide for the defense of actions against and the indemnification of public employees as permitted by N.J.S.A. 59:10-1 et seq.

B. 

Definitions. As used in this section, the following words shall have the meanings indicated:

EMPLOYEE

Any officer, employee or servant, whether or not compensated or part-time, individual members of appointed boards and committees and elected officials who are authorized to perform any act or service; provided, however, that the term does not include an independent contractor.

PUBLIC EMPLOYEE

Any employee or former employee of the Township.

C. 

Defense of action. The Township shall provide for the defense of any action brought against a public employee on account of any act or omission in the scope of such employee's employment, and this obligation shall extend to any cross-actions, counterclaims or cross-complaints against such employee.

D. 

Exception. The provisions of Subsection C above shall not be applicable when the Township determines that:

(1) 

The act or omission was not within the scope of employment.

(2) 

The act or failure to act was because of actual fraud, willful misconduct or actual malice.

(3) 

The defense of the action or proceeding would create a conflict of interest between the Township and the public employee.

(4) 

The defense of the action or proceeding is provided for by an insurance policy or policies, whether obtained by the Township or by any other person.

(5) 

The public employee failed to deliver to the Business Administrator within 10 calendar days after the time the employee is served with any summons, complaint, process, notice, demand or pleading the original or a copy of the same.

(6) 

The public employee has failed to cooperate fully with the defense.

E. 

Methods of providing defense. The Township may provide any defense required of it under this section through the Township Attorney or by employing special counsel pursuant to the code.

F. 

Township control over litigation. Whenever the Township provides any defense required of it under this section, the Township, through the Township Attorney or other special counsel, may assume exclusive control over the representation of the public employee and such employee shall cooperate fully with the defense.

G. 

Indemnification.

(1) 

In any case where the Township is required to provide a defense under this section, the Township shall pay or shall reimburse the public employee for:

(a) 

Any bona fide settlement agreements entered into by the employee.

(b) 

Any judgment entered against the employee.

(c) 

If the Township has failed to provide such required defense, all costs of defending the action, including reasonable counsel fees and expenses, together with costs of any appeal.

(2) 

In addition, in any case where the Township would be required to provide a defense under this section except for the fact that such defense is provided for by insurance, the Township shall provide indemnification as aforesaid, but only to the extent not covered by insurance.