Hempfield to settle with ex-worker for $35K more than he wanted - Insurance News | InsuranceNewsNet

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June 21, 2010 Newswires
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Hempfield to settle with ex-worker for $35K more than he wanted

Hempfield Area School District could have settled a lawsuit with a former employee last year for $35,000 less than it now has to pay.

Attorney Joseph Hudock of Pittsburgh represented former Assistant Athletic Director Michael Burrell in his suit against the district, Athletic Director Greg Meisner and eight current and one former school director.

Burrell had alleged he was dismissed from his post and a second job as ticket manager because he reported the disappearance and sudden reappearance of $2,400 from the office of Meisner in 2008.

The two sides agreed Thursday during a settlement conference overseen by U.S. District Judge David Cercone that Burrell would receive a $50,000 settlement.

Hudock said last April the two sides met with a mediator and Burrell was willing to accept less money to settle his whistleblower's lawsuit.

"Mike was prepared to settle the case for $15,000 in April 2009," Hudock said. "So now they're paying $50,000."

As of Thursday, some directors were adamant against settling the case.

"We walked into the conference, and the offer was zero," Hudock continued. "After 4 hours, we got to the number $50,000."

The agreement was reached with one vote to spare. The school board today will have to formally approve the payment, which will be paid by the district's insurer.

Directors John Henry, who is the board president, Sonya Brajdic, Diane Ciabattoni and Jeff Weber opposed the deal. Voting in favor were Joe Lutz, Robert McDonald, Gordon Scherff, Will Shay and Randy Stoner, vice president.

Henry could not be reached for comment. Stoner declined to comment.

Cercone ordered the school district to bring any official to the settlement conference who had the authority to agree to a deal. Only Henry and Stoner attended, causing a frustrated Cercone to order Henry to poll directors by telephone, Hudock said.

"Neither Henry nor Stoner had the authority to speak for the board. The judge was frustrated by the fact he didn't know who he was dealing with," Hudock said.

"It was frustrating to all of us," he continued. "It was the insurance company paying the settlement. The board claimed it was a matter of principle. They didn't want to give him anything."

Hudock said Cercone never pressured the board into accepting the deal. He kept both sides talking until a deal was reached, adding that Cercone "is the furthest thing from a bully that I can imagine."

Hudock was referring to a charge by Weber that Cercone "bullied" the board into accepting the settlement.

Burrell was Meisner's assistant in 2008 when Burrell reported to police that $2,400 in ticket money had vanished from Meisner's office, court documents say. Burrell was ordered by state police not to discuss the investigation with Meisner, who was out of town for the weekend.

Meisner returned the same weekend and took Burrell to the office to search for the missing money. He allegedly demonstrated to Burrell how to get into the locked cabinet where the money was kept without using a key, court documents say.

The following Monday, Meisner and Burrell searched for the money again and this time Meisner discovered $2,420 in an envelope wedged between Burrell's desk and the wall, court documents say. The cash was newer and in $20 denominations, it is alleged. Burrell had reported the missing money was smaller bills.

Later, Burrell was told he would not be reappointed as assistant athletic director or ticket manager.

"This board is at loggerheads with one another," Hudock said. "It's a fractured board. It was the board that was the problem."

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Hempfield to settle with ex-worker for $35K more than he wanted [Pittsburgh Tribune-Review (PA)]

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