N.J. Stat. § 40:7-1: Liability of county or municipality; negligence of driver

A county or municipality shall be liable in damages when an officer of the county or municipality shall command the operator of a motor vehicle to pursue an alleged violator of law, and in the pursuit personal injury shall be inflicted or damage to property shall be caused by the motor vehicle, provided the operator of the motor vehicle has not been negligent in the operation thereof.