Former Southwest Licking utility GM settles improper termination lawsuit, receives $125K

The former general manager of a Southwest Licking utility will receive $125,000 after settling a lawsuit over his employment being improperly terminated nearly four years ago.

John Carlisle, the former general manager of the Southwest Licking Community Water and Sewer District, will receive the payment as a result of the district's insurance carrier, Selective Insurance Company of America, choosing to settle all outstanding legal matters between the district and Carlisle, according to information released by the district Friday.

The case had been scheduled for a jury trial Jan. 29 in Licking County Common Pleas Court, but Carlisle and the district agreed to settle prior to starting the trial.

Carlisle, who previously served as a district board member, filed his initial civil lawsuit against the SWLCWSD Board of Trustees in June 2020 in Licking County.

The settlement concludes nearly four years of litigation between Carlisle and the district.

Carlisle sought more than $500,000 in back pay, damages and other costs after Licking County Common Pleas Judge Thomas Marcelain found in April 2022 that the executive session the district board members entered into during their March 26, 2020, meeting was improperly constituted. Following that executive session, the board voted to terminate Carlisle's employment contract.

Because the board did not act in compliance with Ohio Revised Code by specifically saying their purpose for entering into the executive session, Marcelain explained, the action subsequently taken at the meeting following the executive session must be invalidated.

According to information released by the district Friday, the district's general liability insurance policy permits the carrier to settle claims at their sole discretion, which the carrier determined to do in this case. The settlement was offered by the carrier and accepted by Carlisle, who was previously an Etna Township trustee.

The district serves Etna Township, whose trustees select one of the district's board members.

No district money will go toward the settlement amount. The utility district's counterclaims against Carlisle for unjust enrichment, fraud, and breach of fiduciary duty were dismissed as a result of the settlement.

"It was our insurance carrier’s prerogative to settle the pending cases," said Nick Eippert, chief legal counsel for the district, in the news release. "Although we were confident that we would ultimately be successful on the merits in each of the cases, our insurance carrier examined the costs associated with prolonged litigation, because of the potential for appeals, and they elected to make a business decision to settle the matter for pennies on the dollar."

Carlisle's attorney, Drew Piersall, said Monday the settlement amount speaks for itself.

"I would let the public draw their own conclusions and opinions, but I think most people would say $125,000 is a lot of money," he said.

A portion of the settlement will go toward Carlisle's attorney fees, but Piersall declined to specify how much.

In an application for damages filed in Licking County Common Pleas Court in 2022, Carlisle sought a statutory fee of $500, back pay in the amount of $293,063, costs of $200 and attorneys' fees currently amounting to $207,370.

mdevito@gannett.com

740-607-2175

Twitter: @MariaDeVito13

This article originally appeared on Newark Advocate: Former Southwest Licking utility GM settles lawsuit for $125,000