A $100,000 settlement agreement finalized Dec. 4 was the last chapter in Sharon Fahy’s lawsuit against Oxford Township and Treasurer Joe Ferrari.
“It’s best the parties go their separate ways,” said attorney Tom McGraw, who represented the township in this matter. “(The case) could have gone on for two or three years, but the township felt it best to put the matter behind them and get on with serving their taxpayers.”
Fahy, a former deputy treasurer who was terminated in March 2002, filed suit in Oakland County Circuit Court in May 2002 against Ferrari and the township.
The claims listed in her suit included sexual harassment, sexual discrimination, retaliation, violation of Michigan’s Whistleblower’s Act, wrongful discharge/breach of contract and “intentional infliction of emotional distress.”
According to Supervisor Bill Dunn, the township will pay $50,000 of the settlement while its insurance carrier will cover the other half.
Dunn said the township’s half of the $100,000 payout will most likely come from its General Fund.
“We’ll have to vote on a budget amendment for it at the next meeting,” said the supervisor.
McGraw did wish it to be noted that Fahy’s sexual harassment claim was dismissed by the court prior to settlement.
The settlement agreement – a copy of which was obtained by the Leader via the Michigan Freedom of Information Act – stated that it was “entered into after the court’s dismissal of the sexual harassment claim against Joseph Ferrari.”
Fahy’s claim of “intentional infliction of emotional distress” was also dismissed by the court prior to the settlement, McGraw added.
“I was pretty happy those two allegations were dismissed by the court,” said Ferrari, adding he’s not permitted to comment on the settlement itself.
The settlement agreement also states that it “shall not be construed to be an admission of any obligation or liability by the Defendants, Oxford Township and Joseph Ferrari” and that it was “entered into solely to avoid further expenses of litigation by the (insurance) carrier.”
“In fact, Defendants at all times were guided by and strictly observed all legal duties and obligations imposed by law or otherwise and all actions of Defendants were careful, prudent, proper and lawful,” the settlement agreement stated.