Gov. Murphy’s administration approves Camden bill that could help fund indicted former mayor’s legal fees

New Jersey Gov. Phil Murphy’s administration has approved a Camden decision to lift a cap on the amount of taxpayer money that can be allocated toward current and former officials’ legal defense.

The legislation, which passed Camden City Council earlier this month, prompted backlash from some residents and activists who said it appeared designed to benefit former Mayor Dana L. Redd, who was indicted in June on state racketeering charges alongside South Jersey Democratic power broker George E. Norcross III.

After passing City Council, the measure went to the state Department of Community Affairs, which is led by Commissioner Jacquelyn A. Suárez, a Murphy appointee. The department oversees Camden’s finances under a law that is set to expire in January 2025. The city’s $214 million budget for 2024 anticipates $131 million in state aid.

Camden Mayor Victor Carstarphen signed the legislation last week, according to a city spokesperson. It will take effect after the city publishes notice of the law.

The ordinance would authorize “reasonable attorneys’ fees” for current and former public officials in certain circumstances. That is a change from existing law, enacted in 2002, which set a maximum rate of $125 an hour, according to city officials.

As in the existing ordinance, the new one would allow the city attorney to refuse to provide defense if he or she determines, among other things, that the act for which the official is being prosecuted “was because of actual fraud, willful misconduct, or actual malice.”

The state will not approve any current or former employee’s legal fees unless the criminal case resolves in a manner favorable to the employee — meaning the charges are dropped or the person is found not guilty, according to Murphy administration officials. During City Council meetings, some Camden residents spoke out against a provision of the ordinance that indicated the city would cover employees’ legal fees before the resolution of any criminal proceeding. The ordinance added that Camden could seek to claw back the fees if the person is found guilty.

Murphy administration officials said Camden’s new “reasonable” standard is consistent with the law in other municipalities that receive transitional aid from the state.

Lisa Ryan, a DCA spokesperson, said Wednesday that the ordinance “provides important revisions” to Camden’s existing law, “including the payment of reasonable attorney’s fees and requiring employees benefiting from its provisions to execute a cooperation or indemnification agreement with the city.”

“In our conversations with the city, we have been assured that the principles of common law, which only permit the indemnification of defense costs when it has been determined that the official executed his/her duties as authorized by law and in good faith, will be adhered to,” Ryan said in a statement.

“Without such a finding subsequent to a favorable resolution of the criminal action,” she said, “this office cannot approve any authorization of legal fee payments for any current or former employee.”

Under the Municipal Rehabilitation and Economic Recovery Act, the state would be required to approve any Camden resolution seeking to reimburse a current or former employee’s legal fees, Ryan said. That law expires in January but could be renewed.

Antoinette Miles, state director of the New Jersey Working Families Party, said it was disappointing to see the ordinance move forward. “However, understanding that DCA is going to have continued oversight, we hope and expect the city will adhere to” the state’s guidance, Miles said.

Redd’s attorney, Henry Klingeman, has declined to say whether Redd intends to seek reimbursement from the city. Redd, who served as mayor from 2010 to 2018, has pleaded not guilty to the charges.

This article has been updated to include additional context from Murphy administration officials.