Settlement reached in teacher lawsuit against Gentry district

— A settlement was reached before the conclusion of a trial last week in a lawsuit filed by former Gentry teacherEleanor McCrary against the Gentry School District.

An order of dismissal was filed in BentonCounty Circuit Court on April 4, ending the case.

Terms of the settlement included a one-time payment to McCrary by the School District of $60,000 and a letter of resignation dated June 1, 2009, from McCrary.

McCrary had requested back pay and benefits for school years2010, 2011 and 2012, plus reinstatement to a teaching position in the district in the next school year. It was estimated that back pay and benefits would have cost the district near $150,000.

McCrary, just a few daysbefore the trial was to begin, offered to settle for $100,000 plus reinstatement to her teaching position. The Gentry SchoolBoard rejected the proposal and authorized district superintendent Randy Barrett to negotiate a settlement with McCrary but without a teaching position in the district.

The school district’s counteroffer, which was the estimated cost of a year’s salary and benefits, plus McCrary’s attorneyfees was on the table when the trial began on April 3, according to Barrett. At the end of the day, a counteroffer was received from McCrary’s attorney for less than the district’s original offer, which the district accepted.

Also included in the settlement agreement, received through Freedom of Information Act request from the district, were letters of recommendation for McCrary from Barrett and from Gentry Primary School principal Gayla Wilmoth, McCrary’s principal when she last taught in the district.

During her eight years with the district, she was a Title I teacher and a kindergarten teacher, according to the recommendation letters. Her performance evalu-ations during her tenure in the district were satisfactory, the letters state.

McCrary and the Gentry School District will each be responsible for their own attorney fees in the case. The school district will not be liable for any payment into the Arkansas TeacherRetirement System during the years after McCrary left the district’s employ.

The district agreed to pay McCrary a lump sum of $60,000 by April 30. McCrary will receive an IRS 1099 form, with no taxes or FICA contribution withheld by the school district.

The case came about when McCrary did not sign and return her teaching contract in the summer of 2009 - even after a second copy was sent to her - and did not report for work on the first day for teachers to return in August.

“I thought Mrs. McCrary rejected the contract and didn’t show up for work,” Barrett said. “I believe she quit. She believes she was wrongfully terminated.”

According to Barrett, the school district’s insurance company will pay $20,000of the settlement amount and a portion of the district’s legal fees, meaning the district’s liability in the settlement will be approximately $45,000.

“I think the settlement is fair to both sides,” Barrett said.

News, Pages 1 on 04/11/2012