§ 6-4. Provisions for indemnification of employees.  


Latest version.
  • A. 
    Except as otherwise provided herein, the Borough shall indemnify and save harmless any employee from financial loss resulting from any civil action, suit or proceeding, including a cross action, counterclaim or a cross-complaint, against such employee on account of any act or omission done in the scope of his/her employment; provided, however, that the act or failure to act does not arise out of actual fraud, willful misconduct, actual malice or an intentional wrong.
    B. 
    The Borough shall defray all costs of defending a legal action against said employee, including attorney's fees consistent with the current hourly rate established by the Borough, court costs and expert or technical witness fees, and any amount paid in settlement thereof, and actually and reasonably incurred in connection therewith, to the extent permitted by general law. Expenses thus incurred may be paid in advance of final disposition of the action, but the Borough may, in its discretion, wait for a final determination before being obligated to make any payments.
    C. 
    Nothing herein shall authorize the Borough to pay for damages resulting from the commission of a crime; however, the Borough shall indemnify and save harmless each employee from financial loss resulting from any action described above, including punitive or exemplary damages, if, in the opinion of the governing body, the acts committed by the employee upon which the damages are based do not constitute actual fraud, actual malice, willful misconduct or an intentional wrong.
    D. 
    If the Borough employee files a counter action or counterclaim in the legal proceeding, the Borough shall not be obligated to reimburse such employee for any attorneys fees or court costs attributable to such counter action or counterclaim.