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Agenda 11/18/2014 Item # 16K511/18/2014 16.K.5. EXECUTIVE SUMMARY Recommendation to reject a written Settlement Offer presented by Plaintiff Susanna Capasso in the lawsuit styled Susanna Capasso v. Collier County (Case No. 2:12- cv -499- FtM-99DNF) now pending in the United States District Court, Middle District of Florida Fort Myers Division and to direct the County Attorney to proceed with the defense of the lawsuit currently scheduled for trial in December 2014. OBJECTIVE: To reject the $300,000 Settlement Offer proposed by Plaintiff Susanna Capasso. CONSIDERATIONS: The Plaintiff, Susanna Capasso, is a former Code Enforcement Department Supervisor of Investigations. Ms. Capasso was separated from County service on or about April 18, 2011 based on her inability to return to work following her Family Medical Leave Act (FMLA) leave. Ms. Capasso's Complaint in Federal Court originally alleged both national origin discrimination and retaliation. The County filed a Motion for Summary Judgment on both counts and the national origin discrimination claim was dismissed by the Court. The retaliation claim is the sole count remaining, with Ms. Capasso alleging that her supervisor Director Diane Flagg retaliated against her for filing the EEOC Complaint. In the summer of 2010, Ms. Flagg gave a negative performance evaluation of Ms. Capasso. Following this evaluation, Ms. Capasso complained to HR alleging that Ms. Flagg was treating her unfairly based on her national origin. During this time frame, the normal practice for dealing with a negative performance evaluation was followed. In addition, the employee received two behavioral action plans in November and December, which were unrelated to the original performance evaluation. Thereafter, Ms Capasso went out on 12 -week FMLA leave. At the end of this period Ms. Capasso requested a 30 day leave extension, which was denied, and Ms. Capasso was separated from service. The heart of Ms. Capasso's compliant is that these personnel actions were in retaliation for her having filed the EEOC Complaint. The parties attended Court Ordered Mediation on July 23, 2014 and reached impasse. At the County's request, on November 7, 2014, the Plaintiff sent a written settlement offer (attached) demanding $300,000 to settle the case in full. If agreed to by the Board, no other costs or fees would be due, as Plaintiffs attorney's fees would be paid out of this settlement sum. It is the position of the County Attorney, the Risk Management Department and the County's outside Insurance Company to try this case, as the demand for settlement is unreasonably high (Ms. Capasso was earning $55,272 per annum), and her claim of retaliation is defensible. FISCAL IMPACT: Failing settlement at this time or later, this matter will be tried before a jury that will be authorized to award damages, and the County could be responsible under Federal law for Plaintiffs legal fees, plus whatever damages may be awarded by the jury. However, since this is a covered case, the County's exposure is limited to $100,000 (subject to policy terms) for all costs, including all parties attorney's fees. Funds are budgeted in Risk Management Fund No. 516. GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners rejects a written Settlement Offer presented by Plaintiff Susanna Capasso in the lawsuit styled Susanna Capasso v. Collier Packet Page -2184- 11/18/2014 16.K.5. County (Case No. 2:12 -cv- 499- FtM- 99DNF) now pending in the United States District Court, Middle District of Florida Fort Myers Division and to direct the County Attorney to proceed with the defense of the lawsuit currently scheduled for trial in December 2014. PREPARED BY: Colleen M. Greene, Assistant County Attorney Jeffrey A. Klatzkow, County Attorney Packet Page -2185- 11/18/2014 16.K.5. COLLIER COUNTY Board of County Commissioners Item Number: 16.16. K. 16. K. 5. Item Summary: Recommendation to reject a written Settlement Offer presented by Plaintiff Susanna Capasso in the lawsuit styled Susanna Capasso v. Collier County (Case No. 2:12 -cv- 499- FtM- 99DNF) now pending in the United States District Court, Middle District of Florida Fort Myers Division and to direct the County Attorney to proceed with the defense of the lawsuit currently scheduled for trial in December 2014. Meeting Date: 11/18/2014 Prepared By Name: CrotteauKathynell Title: Legal Secretary, CAC) Office Administration I 1/] 0/2014 2:07:20 PM Approved By Name: WalkerJeff Title: Director - Risk Management, Risk Management Date: 11 /] 0 /2014 2:18:10 PM Name: GreeneColleen Title: Assistant County Attorney, CAO General Services Date: 11/] 0/2014 4: l 6:22 PM Name: KimbleSherry Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: l 1 /10/2014 4:41:28 PM Name: KlatzkowJeff Title: County Attorney, Date: 11/10/2014 4:55:55 PM Name: OchsLeo Title: County Manager, County Managers Office Date: l 1/] 0/2014 6:57:46 PM Packet Page -2186- 11 /18/2014 16. K.5. BRENNAN, MANNA & DIAMOND, P.L. 3301 Bonita Beach Road ♦ Suite 100 ♦ Bonita Springs, FL 34134 ♦ wrtnt,.bmdpl.com phone (239) 992 -6578 ♦ facsimile (239) 992 -9328 Kim M. Hastings, Esq. direct dial: (239) 405 -7864 kmhastingsnhmdpl.coni November 7, 2014 VIA E -MAIL John F. Potanovic, Jr., Esq. Henderson, Franklin, Starnes & Holt, PA 1715 Monroe Street PO Box 280 Ft Myers, FL 33902 -0280 Re: Capasso v Collier County /Case No. 2:12 -ev- 499- FtM -99DNF Dear John: This letter is in response for your client's request that Ms. Capasso submit her "Last Best Offer" to be reviewed by the Board of County Commissioners at their November 16, 2014 meeting. At this time, we are in the final pretrial phase of this litigation. The court has dismissed Ms. Capasso's discrimination claim but her retaliation claim remains. In our minds, this will allow us to streamline our case and focus on Ms. Capasso's retaliation claim which we believe is very strong. And, we believe that the jury will find the frequency and timing of the discipline handed down by Diane Flagg, coupled with Amy Lyberg's lack of oversight of Dianne Flagg's actions, to be egregious enough to prompt a jury to award Susana Capasso the back pay and front pay she is asking for as well as generous compensation for her pain and suffering. We understand that you, obviously, disagree and will zealously defend your client at trial. Notwithstanding our confidence in Ms. Capasso's case, we also understand that there is a benefit to reaching an agreement and avoiding the time, expense and uncertainty of trial. Per our expert 's report, Ms. Capasso's back pay damages are $104,993.00 and her front pay damages are $190,533.00, totaling lost past and future wages and benefits of $291,996.00. We expect that the jury will award enough in damages for emotional distress to meet the compensatory damages cap of $300,000.00. Therefore, Ms. Capasso has the potential to recover approximately $405,000.00 in damages, plus attorney fees which will be at least $200,000.00 after going through trial. Your own expert valued Ms. Capasso's economic loss in a range of $100,000.00 to $150,000.00. Accordingly, Ms. Capasso has authorized us to make a settlement demand of $300,000.00 in full and final satisfaction of all claims. We look forward to you client's response which we understand will not Shanghai, China ♦ China Enterprise Tower ♦ 1376 West Nanjing Road ♦ West Tower, 5 °i Floor, Suite 504 -27 Shanghai, China 200040 ♦ Phone: (330) 752 -1959 Jacksonville, FL ♦ 800 West Monroe Street, Jacksonville, FL 32202 ♦ Phone: (904) 366 -1500 ♦ Fax: (904) 366 -1501 Akron, OH ♦ 75 E. Market Street ♦ Akron, OH 44308 ♦ Phone: (330) 253 -5060 ♦ Fax: (330) 253 -1977 visit us online at: www.hmdpl.com or www.prohusinesslaw.orc Packet Page -2187- 11/18/2014 16.K.5. John F. Potanovic, Jr., Esq. November 7, 2014 Page 2 be forthcoming until after November 16, 2014. In the meantime, we will continue to prepare our pretrial materials which are due November 14, 2014. Sinc rely yours, Kim M. Hastings�--7 Cc: Richard A. Annunziata, Esq. Ms. Susanna Capasso Packet Page -2188-