County’s Insurer Settles Lawsuit ; Firm Will Pay $75K To Former Hr Chief [Intelligencer Journal (Lancaster, PA)]

Staff Writer

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Lancaster County's insurance company has settled a lawsuit filed by a fired human resources director, determining it would be cheaper than going to trial, a lawyer for the county said.

The $75,000 settlement will be paid by Travelers to Wendy Chan and was made over objections by commissioners Scott Martin and Craig Lehman, who were defendants.

"The county's not making any contribution," David Schwalm, an attorney for the county, said Wednesday.

Martin said he was confident in the county's case.

"I'm very disappointed that the insurance company made a business - and not a principled - decision," Martin said.

Said Lehman: "I did not agree to the settlement, nor do I agree with it. I remain confident in the county's position and stand by the original decision without reservation."

Chan's attorney, Nina Shapiro, said the suit was settled "because it makes sense to do so for all parties, the community, and so that Wendy Chan could move forward with her law practice."

The case was expected to begin this week in federal court.

According to court documents filed by the county in the case, Chan was fired in July 2009 for violating its ethics policy.

Chan tried to use her position to influence the county's health insurance broker, Benecon, to intervene with one of its employees who said she had problems with a car she'd bought from Chan's husband, a car salesman, according to the county.

Chan claimed she was falsely accused of ethics violations.

She claimed she was actually fired for "reporting and acting to remedy discrimination on the basis of sex, disability and race ... ."

Chan, who is Asian, also claimed she was treated differently by being fired than were white county officials accused of violating the ethics policy.

The county had sought to have Chan's case dismissed.

A federal judge did dismiss some claims Tuesday, but let others stand. They included her claim that she was treated differently than other county officials of similar positions accused of violating the county's ethics policy.

Among her dismissed claims were that county officials defamed her.