Council places attorney appointments for state lawsuit on consent agenda amid public questions about indemnity

A consent-agenda resolution (item noted in mayor’s remarks) to appoint legal counsel related to an attorney general lawsuit was advanced by the council on March 2 as part of routine business.

Multiple residents asked whether the township would reserve the right to decline indemnification or to seek reimbursement if malice or intentional misconduct were proven. John Greaves and others expressed concern that, while representative counsel is appropriate for officials acting in their official capacity, plaintiffs’ allegations of intentional wrongdoing could create liability the insurer does not cover.

Township counsel explained that most attorneys for individual defendants were approved by the joint insurance fund and that the insurer covers defense costs after the fund hits a $100,000 aggregate threshold (the $100,000 applies to the fund's payments overall, not per attorney). Counsel said the carrier is currently defending the claim and that indemnification and hold-harmless questions are guided by the carrier’s decisions.

Council members and the mayor reiterated they do not have reason at this time to question recent hires; council members said the joint insurance fund selected counsel and that the township-insurance process determines coverage for fees and potential judgments.

The consent agenda, which included these appointments along with routine resolutions and the mayor’s other items, was adopted by motion and roll call.