Reining in Costly Settlements

The harassment case involving former Assistant Sheriff Dennis LaDucer has raised a number of disturbing issues. But the cost of settling such litigation and the approval of settlements is also an important matter to come out of this litigation. The case is strong for tougher oversight by supervisors of payments agreed to by the county. The county’s lawsuit settlement policy needs review and tightening, so that the board, not a committee to whom authority is delegated, signs off on big cases.

The county to date has settled two of five sexual harassment suits filed by Sheriff’s Department employees against LaDucer, and has paid $914,906, according to records. A third settlement now under consideration could result in a total payment by the county that exceeds $1 million. The county also has had to spend nearly $237,000 to date on attorneys’ fees. Whatever merit there may be in moving on and avoiding potentially higher payouts, it has been an expensive case in the post-bankruptcy environment of Orange County.

LaDucer has denied making inappropriate comments to a sheriff’s lieutenant, as well as groping her and other female employees. Following an internal investigation, he was fired. He has his own litigation challenging his firing.

The county is to be commended for its attempts to increase its sexual harassment awareness training for county employees. However, the cost of settlement is an area where further oversight would be prudent.

This case already has become the most expensive case in county government history, and out-of-court settlements have been made by county staffers without any approval of the Board of Supervisors.

Supervisor Todd Spitzer recently said that the amount of settlements being made out-of-court alarms him. He asks, rightly, how the county’s top board can represent the taxpayers when the settlements are made without review at the supervisorial level.

According to legal experts, it is common for parties in sexual harassment suits to settle rather than having the messy accusations vetted in open court. While it may be a delicate line, supervisors surely can carve out for themselves some oversight role without engaging directly in legal strategy, or second-guessing the attorneys representing the county.