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Government
Contracts
Breach of Contract

Donal O'Callaghan v. City of Vernon

Published: Nov. 5, 2011 | Result Date: Aug. 3, 2011 | Filing Date: Jan. 1, 1900 |

Settlement –  $500,000

Court

L.A. Superior Norwalk


Attorneys

Plaintiff

Mark J. Werksman


Defendant

David J. Schindler
(Latham & Watkins LLP)


Facts

Donal O'Callaghan, a former city administrator, sued the city of Vernon for breach of employment contract. He was placed on leave after news broke out that he had overseen his wife's hiring as city contractor. Prosecutors later charged him with conflict of interest and misappropriation of public funds. Allegation included corruption charges involving questionable business deals between the city and his wife. He later pleaded guilty to felony corruption charges and was serving summary probation, including several hours of community service.

Damages

O'Callaghan demanded $1.2 million from the city.

Result

The city paid $500,000 to settle the matter. The city was prevented from terminating O'Callaghan with cause unless he was convicted of a "felony involving moral turpitude" and opted to settle instead of being embroiled in a protracted and messy litigation.


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