Acts and Regulations

M-22 - Municipalities Act

Section 85.1
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Indemnification against liability
85.1(1)Except in relation to an action by or on behalf of the municipality, in which case the approval of The Court of Queen’s Bench of New Brunswick must first be obtained, a municipality may indemnify a member or former member of council, an officer or former officer of the municipality, an employee or former employee of the municipality or a member or former member of a committee, board, commission or agency established by council, and his or her heirs and legal representatives, against all costs, charges and expenses, including any amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in relation to any civil, criminal or administrative action or proceeding to which he or she is made a party by reason of being or having been a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council, if he or she
(a) acted honestly and in good faith with a view to the best interests of the municipality, and
(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing the conduct was lawful.
85.1(2)Notwithstanding anything in this section, a person referred to in subsection (1) is entitled to indemnity from the municipality in relation to all costs, charges and expenses reasonably incurred in connection with the defence of any civil, criminal or administrative action or proceeding to which that person is made a party by reason of being or having been a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council if the person seeking indemnity
(a) was substantially successful on the merits in defence of the action or proceeding, and
(b) fulfills the conditions set out in paragraphs (1)(a) and (b).
85.1(3)A municipality may purchase and maintain insurance for the benefit of any person referred to in subsection (1) against any liability incurred by that person
(a) as a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council, except where the liability relates to the failure of that person to act honestly and in good faith with a view to the best interests of the municipality, and
(b) as a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council where he or she acts or acted in that capacity at the municipality’s request except where the liability relates to the failure to act honestly and in good faith with a view to the best interests of the municipality.
85.1(4)A municipality or a person referred to in subsection (1) may apply to The Court of Queen’s Bench of New Brunswick for an order approving an indemnity under this section and the Court may so order and make any further order it thinks fit.
85.1(5)On an application under subsection (4), the Court may order notice to be given to any interested person and that person is entitled to appear or be represented and be heard in person or by counsel.
85.1(6)For the purposes of this section, an employee includes a person who provides volunteer services at the request of and on behalf of a municipality.
2003, c.27, s.33
Indemnification against liability
85.1(1)Except in relation to an action by or on behalf of the municipality, in which case the approval of The Court of Queen’s Bench of New Brunswick must first be obtained, a municipality may indemnify a member or former member of council, an officer or former officer of the municipality, an employee or former employee of the municipality or a member or former member of a committee, board, commission or agency established by council, and his or her heirs and legal representatives, against all costs, charges and expenses, including any amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in relation to any civil, criminal or administrative action or proceeding to which he or she is made a party by reason of being or having been a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council, if he or she
(a) acted honestly and in good faith with a view to the best interests of the municipality, and
(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing the conduct was lawful.
85.1(2)Notwithstanding anything in this section, a person referred to in subsection (1) is entitled to indemnity from the municipality in relation to all costs, charges and expenses reasonably incurred in connection with the defence of any civil, criminal or administrative action or proceeding to which that person is made a party by reason of being or having been a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council if the person seeking indemnity
(a) was substantially successful on the merits in defence of the action or proceeding, and
(b) fulfills the conditions set out in paragraphs (1)(a) and (b).
85.1(3)A municipality may purchase and maintain insurance for the benefit of any person referred to in subsection (1) against any liability incurred by that person
(a) as a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council, except where the liability relates to the failure of that person to act honestly and in good faith with a view to the best interests of the municipality, and
(b) as a member of council, an officer or employee of the municipality or a member of a committee, board, commission or agency established by council where he or she acts or acted in that capacity at the municipality’s request except where the liability relates to the failure to act honestly and in good faith with a view to the best interests of the municipality.
85.1(4)A municipality or a person referred to in subsection (1) may apply to The Court of Queen’s Bench of New Brunswick for an order approving an indemnity under this section and the Court may so order and make any further order it thinks fit.
85.1(5)On an application under subsection (4), the Court may order notice to be given to any interested person and that person is entitled to appear or be represented and be heard in person or by counsel.
85.1(6)For the purposes of this section, an employee includes a person who provides volunteer services at the request of and on behalf of a municipality.
2003, c.27, s.33