OLD ORCHARD BEACH — The town will pay $45,000 toward a $150,000 out-of-court settlement to former town manager Mark Pearson.
Pearson sued the town in April 2013, following his termination from the job.
Pearson’s lawyer, John Richardson, said in the lawsuit the town breached Pearson’s employment contract and violated the town charter, state law, and the Maine and U.S. constitutions by terminating Pearson’s employment without cause and by not following due process requirements.
In the lawsuit, Pearson had asked the town to reinstate his position as town manager and award him damages, costs and attorney’s fees.
The settlement is a result of a mediation session attended by Council Vice Chairman Bob Quinn and Town Manager Larry Mead.
The town will pay $45,000 toward the settlement, and the rest will be paid by the town’s insurer.
The town council voted to approve the expenditure Tuesday night.
“The town’s acceptance of a settlement should not be interpreted as an acknowledgment of the validity of the claims made against the town,” said Mead, in a prepared statement released before Tuesday night’s meeting. “The town council’s decision to settle the dispute was made out of consideration for the uncertain potential financial exposure to the town that is inherent in this type of litigation.”
All parties have agreed that the terms of the agreement will remain confidential, said Mead in the statement.
Council Chairman Shawn O’Neill said Tuesday night the council was disclosing the financial part of the agreement because “this is coming from your tax dollars.”
— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.
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