Confidential
Settlement – $250,000Facts
The defendant hired plaintiff as executive director in November 1989, a position that paid approximately
$100,000 per year. His contract provided that if he was dismissed without cause, he would receive one yearÆs
salary. Following a leave for cancer treatment, the plaintiff returned to work, but became ill with job related
stress and went out on a medical leave.
While the plaintiff was on medical leave, the defendant filled his position, publicly announced that he had
resigned, terminated his employment, and refused to pay him the $100,000 contractual severance pay.
In a newspaper interview, the defendantÆs director attributed new defendantÆs financial difficulties to the
plaintiff and, by innuendo, suggested that the plaintiff had engaged in certain improprieties.
Other Information
The case was mediated before James Slater, retired, of Judicate West, resulting in $250,000 settlement, paid by the insurance carrier for defendant outside of the bankruptcy proceeding. At the time of settlement, the lawsuit had been drafted but not filed or served. It named both the corporation and its new executive director as defendants, thus invoking coverage from the insurance carrier.
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