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Board votes to settle Gibbs litigation; agreement draws sharp debate
Summary
After contentious debate and public letters criticizing a proposed settlement, the board approved a settlement with former county administrator John Gibbs that includes a $190,000 payment and language rescinding the termination and placing a resignation letter in the personnel file; the decision drew public and commissioner opposition.
The Ottawa County Board of Commissioners voted on Jan. 28 to approve a settlement agreement resolving litigation with former county administrator John Gibbs. The settlement, as described in counsel's memorandum, provides a lump-sum payment and resolves multiple pending claims in arbitration and court.
Key terms read aloud at the meeting include a total payment of $190,000 that would be allocated in thirds (a portion to the plaintiff for economic damages, a portion for non-economic damages, and a portion to plaintiff's attorney fees) and an agreement that the county will rescind the February 29, 2024 termination and instead accept a resignation effective February 22, 2024, with the resignation letter placed in Gibbs' personnel file. The agreement includes releases of claims against the county and individual board members and contains a standard non-admission clause.
The settlement was controversial at the meeting. Several commissioners and members of the public urged the board to reject the proposed deal and continue litigation; others said litigation costs and uncertain outcomes justified settlement. Former and current commissioners and a former commissioner (Gretchen Cosby) submitted a public letter urging the board to reject a settlement that they said would undermine accountability and public trust.
Counsel stated that continued litigation could lead to higher costs to the county and that the insurance authority and litigation counsel had worked on the terms. Counsel also warned that open-session discussion of settlement strategy could hinder negotiation leverage. After discussion the board voted by roll call to approve the settlement agreement as presented.
The motion passed by roll call. Commissioners recorded a mix of yes and no votes during the roll call. The board instructed staff to file the executed settlement and proceed with implementation tasks described in the agreement.
