Thursday, October 07, 2010

Comments made by Richard Augustine at SC Public Forum Oct 6, 2010


Numerous taxpayers have requested you seek a court ruling regarding Superintendent Johnson’s contract extension and your cancellation thereof, rather than place Sandwich at financial risk based solely upon non-binding opinion.

Four of you (SC members Marshall, Linehan, Crossman, & Kangas) wantonly disregarded our requests and your responsibility to protect our financial interests.  Putting Sandwich at risk for 2 year’s of salary is irresponsible, arbitrary, capricious and grossly negligent!

I have consulted an attorney who advised there is a reasonable possibility the company insuring Sandwich against law suit could deny coverage because of your willful, negligent actions.

Predicated thereon:
1.    Should Sandwich be sued and a decision be rendered requiring monetary payment to Dr. Johnson; and
2.    Should the Town’s insurer determine they have no legal obligation to make payment on the Town’s behalf;

Please be advised it is my / our intention to sue the four of you, both individually and severally, on behalf of all taxpayers and the Town, for damages plus the cost of litigation, which may exceed $300,000.

Such suits are not uncommon when employees or elected officials willfully act outside the scope, responsibilities and requirements of their positions.  In such cases, employers are not responsible for defending them or paying damages assessed against them.

Should the insurer refuse to pay, such would constitute a prima facie case of irresponsibility and arbitrary, capricious, improper conduct on your parts.

Residents are disgusted with the four of you and your disregard for our financial interests.  You all should be removed from the Committee.  Next May voters will have the chance to remove you, Madam Chair, and it’s my bet that they will.

We hope you all can afford the approximate, average $75,000 plus judgment that could be assessed against each of you.  You gambled with town funds and, ironically, it may well be that you gambled with your own money.

For future legal reference, I request this document be made a part of this meeting’s record.

Please do not regard the foregoing as a threat.  It is not.  It’s a promise

2 comments:

Anonymous said...

Richard is probably right that if Dr. Johnson were to prevail the Town’s insurance company may not honor the policy and may not pay. However, I think Richards’ cost estimate is a bit off.

Assume Johnson make $150,000 a year. If the Town lost she’d be owed 3 years times $150,000 or $450,000 total, plus legal fees (another $50,000). That’s $500,000.

She may be able to seek punitive damages. Assume that’s 3 times what she’s owed ($500,000). That’s another $1,500,000. Total possible claim $2,000,000.

Assume Johnson also claims her reputation has been damaged and she’s owed future earnings too. Just 5 years at $150,000 adds another $750,000 to the bill.

Potential liability: $2,750,000

Anonymous said...

Either way.... I see next year's $3 million deficit groooooooowing -- thanks to The Four Stooges (Nyuk, Nyuk !!)