Your PUD News Release

PUD commissioners approve settling lawsuit 3-2

Chelan County PUD
News Release
1/26/2010

After debating whether to continue defending a case they felt was strong for the PUD, commissioners voted 3-2 late Tuesday afternoon to settle a lawsuit for $135,000 that had been brought by former employee Corey Redick over being fired in 2004 for repeated tardiness.

General Counsel Carol Wardell told PUD commissioners in an open special meeting that the PUD was not admitting any wrongdoing, but that the $135,000 was the same amount she had offered last week to Redick’s attorney Steve Lacy and had been rejected by Lacy at that time. She called it the most cost-efficient approach to resolving the lawsuit. Jury selection and opening arguments had been presented already this week, and the first four witnesses had testified.

Wardell said Redick, a former journeyman electrician at the PUD, had asked for $800,000 in damages and another $1 million for emotional distress. Had the PUD been found liable for any damages, it would also have had to pay Lacy’s attorney fees. She said the $135,000 settlement was supported by the PUD executive team, including General Manager Rich Riazzi with whom she had discussed it via telephone since he is out of town. Wardell had also told the board that if the PUD continued the case, it would face adding to its own attorney fees and court costs, even if it won.

After listening to Wardell’s recommendation, commissioners Norm Gutzwiler and Randy Smith moved to authorize the settlement, but commissioners Ann Congdon and Carnan Bergren voted against settling, causing a brief tie. Board President Dennis Bolz then broke the tie by voting in favor of the settlement.

Commissioner Ann Congdon had spoken in favor of continuing the court action, saying she thought the PUD would win and it would cost less. Bolz said he saw it as an opportunity to mitigate the risk always faced in such a lawsuit.

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The next regular commission meeting is at 1 p.m. on Monday, Feb. 1, 2010, in the PUD boardroom at 327 N. Wenatchee Ave.

Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at www.chelanpud.org.

Steve Lachowicz
Communications director
509-661-4639, direct line
509-679-0148, cell
steve.lachowicz@chelanpud.org