2.72.090 Indemnification against claims.
A. An employee of the borough against whom a claim is made, or a proceeding is threatened or brought, by reason of the employee being or having been an employee of the borough, may be indemnified by the borough against:
1. Reasonable expenses incurred by the employee, including legal fees; and
2. Liabilities imposed upon the employee, including any amount paid in settlement in order to satisfy a judgment or order.
B. No employee may be indemnified unless the employee:
1. Acted in a matter which is related to the employee’s employment and in which the borough had an interest;
2. Acted in discharge of a duty imposed or authorized by law;
3. Acted in good faith and in addition, in the case of a criminal action, that the employee had no reasonable cause to believe that the employee’s conduct was unlawful.
C. No indemnification shall be permitted:
1. For reasonable legal expenses of defense where the borough attorney or any borough insurance policy provides a defense without a conflict of interest; or
2. For liability imposed where any borough insurance policy provides for payment or indemnification of any liability imposed against the employee without subrogation against the employee; or
3. Where the borough makes the claim or brings the proceeding against the employee and the employee has acted in bad faith in connection with the claim.
D. Where a claim is brought against an employee and the employee requests the borough to provide the employee with independent legal counsel pending the prosecution of the claim or proceeding, the borough shall provide independent legal counsel if in the judgment of the borough assembly there may be a possible conflict of interest between the borough’s position and that of the employee, or the liability of the employee concerns claims or defenses not reasonably related to the defense or position of the borough. (Ord. 17-10-481 § 9)