CUSD Settlement is Public Record

A July 24 article on this blog provided details of a lawsuit filed by citizens against the Capo school district over the “Enemies List.” Members of the teachers union and others who supported the old Fleming regime continue to claim that the settlement “robbed” students by taking money from classrooms. Their statements are contrary to facts.

Public agencies often settle with litigants to avoid costly trials. Is anyone suggesting the district should have gone to trial with those on the Enemies List?
The settlement payout was $653,350. The district’s insurance company paid 100 percent of the settlement. The district had a $100,000 deductible, which the district paid directly to the law firms defending the cases after then-Supt. Carter sent the cases to the insurance company.

Somehow, the facts became lost in the campaign rhetoric prior to the Nov. 2 election. The board of trustees demonstrated no favoritism or special treatment toward those on the list in settling lawsuits brought about by multiple families.

The attorney for the district’s insurance company stated publicly that his firm had recommended the settlement after mediation with a retired Court of Appeal Justice selected by the insurance company. If the trustees had not agreed to the settlement negotiated by the insurance company, that would have been a breach of the insurance policy contract, meaning CUSD would have lost its insurance coverage for any judgment. If that happened, the district would be on the hook for paying for its continued attorneys’ fees to defend the case and pay any resulting judgment from the district’s General Fund.  

The settlement issue became part of the campaign because the settling plaintiffs were almost entirely politically conservatives who worked hard ousting the old Board and Fleming and electing the new Board. The lawsuits and settlements were publicly explained in open session by the insurance company (ASCIP) general counsel Robert Feldhake on March 29, 2010.