Atlantic City Off Hook In Blackmail Suit: NJ Appeals Court

Law360, New York (April 5, 2013, 4:44 PM EDT) -- A New Jersey appellate court ruled Friday that Atlantic City isn't obligated to indemnify a former councilman accused of blackmailing a colleague who was secretly videotaped with a prostitute, saying state law allows but doesn't require municipalities to indemnify employees.

The Appellate Division found that a trial court correctly denied John Schultz's request for indemnification and defense costs incurred in a civil suit he and several other former council members faced in the wake of the videotape's release, saying Schultz' actions in the blackmailing weren't a...
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