During the Monday, October 16, Livingston Township Council meeting, a resolution was unanimously passed announcing a settlement agreement with former township manager Michele Meade, who had claimed that she was fired due to her gender. Agreedupon in the settlement is a $ 1 million payment to Meade, made by the township through its insurance administrators.
Council member Rosy Bagolie and Mayor Michael Vieira both reported themselves “present, not voting” on the resolution, because the matter occurred prior to when they joined the Council. The other three Council members all voted infavorofpassing the resolution.
The resolution reads, in part, “In an effort to avoid any further litigation costs and to resolve the issues between the parties, the parties have agreed to settle all claims and the Township Council has determined it to be in the best interest of the township to enter into a settlement agreement.”
Township attorney Jarrid Kantor noted that the settlement is “not an admission of liability by the township, nor that the plaintiff is entitled to the money.”
Meade claimed that she was fired in 2016 and replaced with a male township manager due to a feud with former Livingston Police Chief Craig Handschuch, who has since retired. Meade then sued the township, citing wrongful termination, in January of 2017. Council members Shawn Klein, Ed Meinhardt, Al Anthony, and former member Michael Silverman were all named in the initial claim; that portion of the claim was dismissed with prejudice in 2018, at which time they were no longer part of the case.
In early 2019, a trial court found that the township had no liability in the case. Meade then appealed, and the appellate division upheld the decision. The case, at that time, appeared to be over, before the state Supreme Court picked it up in December of 2021. The matter was then sent back to a lower court for trial. That trial was scheduled to begin on October 2 before the insurance carrier decided to seek a settlement on the Friday prior to its start, September 29.
“No money of this settlement is coming from the township, other than the deductible, which had already been met through legal fees at the trial court level,” township attorney Jarrid Kantor said. “All money going forward is the carrier’s money, and they largely dictate this settlement to the township.”
The insurance carrier, which would be paying the money, decided it did not want to risk a trial, where the exposure would be north of $3 million, choosing instead to settle, Kantor explained. He noted that the Council was “fully prepared” to try the case in court before that determination was made.
“I think we all believe, based on what the trial court said, what the appellate court said… the township’s case on liability is strong, remains strong,” Kantor said, calling the settlement merely a “difficult” fiduciary obligation.
Once the insurance company decided to settle, should the township have chosen to proceed with the trial, insurance would not have covered any ensuing payments. The $1 million amount was determined after “extensive and intensive negotiations” with Meade, guided by the insurance carrier, according to Kantor.
“Yes, this Council has to approve the settlement, but throughout the process, the actual money that was offered is dictated by the carrier,” Kantor said. “It’s their money.”
“Michele Meade litigation” has been a topic on closed executive session agendas for the Township Council for the past several months leading up to the settlement.
“(The settlement) is no comment on any actions taken by the township to the plaintiff in that case, during her tenure, or regarding her termination,” Kantor said.
According to court filings of Michele Meade v. Township of Livingston, which was submitted to the Superior Court of New Jersey’s appellate division in October of 2020, the township claimed that Meade was fired by the Council due to poor performance.
Those same court filings noted that Meade and former Chief Handschuch had a contentious working relationship, which she said was due to his poor job performance. Court filings said that Meade had discussed with the Township Council potentially disciplining Handschuch, which she was able to do in her role as manager. More than one Council member suggested to Meade that she would not be having problems with the chief if she were a man, according to court filings.
The appeals court filing stated that Meade had the authority to discipline or terminate Handschuch herself, and thus dismissed the discrimination complaint. In the state Supreme Court’s ruling, however, it stated that Meade’s gender could have played a role in the Council firing her.
