Chicago State Must Pay $4.3 Million To WhistleblowerTop Stories

February 01, 2017 15:10
Chicago State Must Pay $4.3 Million To Whistleblower

On Tuesday, 31st January, 2017, after delaying the payment of damages in a whistleblower lawsuit, Chicago State University was ordered to pay nearly $4.3 million, about $1 million more than a jury awarded to school official, who was fired after accusing the school's former president for misconduct.

The amount could climb up, as the cash-strapped public university has to pay roughly $20,000 per month in interest, until the jury award is paid. In 2014, a Cook County jury awarded, more than $3 million to former Chicago State attorney, James Crowley, but school avoided the payment, while it challenged the verdict. On Tuesday,Judge James McCarthy ordered the University to pay the original jury award and legal fees along with 6 percent interest earned since the verdict three years ago.

The judge James McCarthy also said that, because it was unreasonable for Crowley to return to his job, the university had to pay about $250,000 in "front pay" money, which he would have earned if he had worked between the time of the jury decision and Tuesday's order.The total cost does not include fees that Chicago State paid to its own attorneys over the years.

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Crowley said, he hopes that the newly appointed university board of trustees will bring the case to close rather than spending more money "by adopting the vengeful crusade of the prior administration."

"For seven years, this lawsuit has been through every possible level of the Illinois courts without one finding in favor of (former university President) Wayne Watson or his administration. The only thing they've accomplished is to cost the taxpayers more and more money," Crowley said,

Throughout the case, courts have criticized Chicago State. The University appealed to the Illinois Supreme Court, which had declined to consider the case.

In his order, McCarthy criticized Chicago State officials.

McCarthy wrote, "The Ethics Act specifically provides that the employee may be awarded all remedies necessary to make the state employee whole," adding Chicago State could have stopped the judgment from increasing "but rather chose to delay payment to its former employee." The judge called the university's handling of lawsuit "yet another example of the management style and judgment exercised by the officials at Chicago State."

It is still unclear when Crowley will receive the money because the school's insurance carrier has argued that, it is not obligated to cover the judgment. The insurance underwriter, Illinois National Insurance Co., informed the university officials last year that Chicago State's policy does not cover the claims stemming from a "fraudulent or dishonest act or a willful violation of any statute, rule or law," according to the letter obtained by Tribune.

Chicago State spokeswoman, Sabrina Land did not respond to questions about when the university would pay the money. She sent a statement maintaining the university's position saying that the judgment was "an unusual and high verdict in an employment case." Attorneys of the University had argued that Crowley was fired for misusing university resources, giving preferential treatment to the students while awarding a scholarship and paying for conference travel for a student.

She said, "The University continues to express its disappointment with this 2014 verdict. Our highest priority is to focus on productive and important matters such as our students, staff and university operations."

Rowley attorney Anthony Pinelli said that while the judge did not set a deadline for Chicago State to pay, it is in the interest of the university to end the matter quickly.

Pinelli said, "(McCarthy) said they had the power to end this by writing the check and chose not to do it. The liability grew as a result of that and continues to grow every day."

The judge's order comes about four weeks after the university settled a separate case of whistleblower with the school's former chief financial officer for $1.3 million.

By Mrudula.

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