FILE:  EGE

 

SETTLEMENT OF LITIGATION, CLAIMS, AND SEPARATION AGREEMENTS

 

 

The St. John the Baptist Parish School Board desires to establish specific requirements for approval and oversight of the settlement of claims and litigation, including approval of settlements above a certain amount and reserves certain approval authority to the School Board itself.

 

DEFINITIONS

 

As used in this policy, the following terms shall have the meaning specified:

 

  1. “School Board” shall refer to the St. John the Baptist Parish School Board.

  2. “Claim” shall refer to any demand for payment from an entity or individual, including a School Board employee, which is disputed in whole or in part and is made other than through litigation.  Commercial negotiations to adjust amounts payable under a contract shall not be treated as “claims.”

  3. “Litigation” shall refer to legal proceedings in the form of a lawsuit, arbitration proceeding, or internal or external administrative proceeding.

  4. “Separation Agreement” shall refer to an agreement with a School Board employee by which the employee separates from School Board employment, but which does not involve a “claim” or “litigation,” as defined above.

  5. “Consideration” shall refer to a monetary commitment on the part of the School Board, whether in the form of a lump sum cash payment, or compensation for services for a specified term, or individually-negotiated payments for benefits (e.g., COBRA), or a non-monetary commitment on the part of the School Board; it excludes payments for salary and benefits previously earned by the employee (e.g., earned vacation leave) or continued employment on the same terms as existed prior to the agreement. When consideration is received by the School Board, it can also be monetary or non-monetary.

 

SETTLEMENT AUTHORITY OF THE SUPERINTENDENT

 

The Superintendent shall have the authority to settle claims and to enter into separation agreements when the consideration paid or received by the School Board has a value of $25,000 or less.  Settlement of claims or separation agreements when the consideration paid or received by the School Board exceeds $25,000 shall require the concurrence of a majority of the School Board.  The release provisions of all settlements of claims and separation agreements, regardless of the amount of consideration, shall be in a format approved by the School Board.  Settlement of claims and separation agreements by the Superintendent shall be subject to appropriate funding.

 

SETTLEMENT AUTHORITY OF THE LITIGATION COUNSEL

 

The Litigation Counsel shall have authority to settle claims and litigation when the consideration paid or received by the School Board has a value of $25,000 or less.  All litigation settlements shall be reviewed and approved by the School Board. Settlement of claims or litigation by the Litigation Counsel shall be subject to appropriate funding.

 

REPORTING OF SETTLEMENTS AND SEPARATION AGREEMENTS

 

  1. Annually by the Litigation Counsel, all settlements of claims and litigation, and all separation agreements, when the consideration paid or received by the School Board has a value greater than $25,000.

  2. At each regular meeting of the School Board, the School Board shall receive a report from the Litigation Counsel of all settlement of claims and litigation, and all separation agreements, when the consideration paid or received by the School Board has a value greater than $25,000 and up to $500,000.

  3. At each regular meeting of the School Board, the School Board shall receive a report of all settlements of claims and litigation and all separation agreements approved by the President of the School Board and the Chairman of the Finance Committee pursuant to Section 4 hereof.

 

SETTLEMENT ACTIONS RESERVED TO THE SCHOOL BOARD

 

The following proposals for settlement of claims or litigation or for separation agreements shall be submitted to the Executive Committee and the Finance Committee for prior approval:

 

  1. To the Executive Committee and the Finance Committee, when the consideration to be paid or to be received by the School Board has a value greater than $25,000 and up to $1,000,000.

  2. To the full School Board, when the consideration to be paid or to be received by the School Board has a value in excess of $1,000,000.

  3. To the full School Board, settlements or separation agreements of any amount involving significant questions of School Board policy.

 

All settlement and separation agreement proposals which require approval by either the Executive Committee, the Finance Committee, or the full School Board, shall be accompanied by the recommendation of the Litigation Counsel and Administration and a statement of the applicable fund source.

 

With regard to faculty members with tenure or security of employment, in the event that a faculty member’s resignation and severance compensation is deemed by the Superintendent to be in the best interests of the School Board, any resulting separation or settlement agreement shall be subject to this policy.

 

New policy:  March 15, 2018

 

 

Ref:    Board minutes, 3-15-18

 

St. John the Baptist Parish School Board