North Miami Beach settles lawsuit tied to former city manager; insurer to cover settlement

The North Miami Beach City Commission approved a settlement ending litigation connected to the city’s former manager and related claims, accepting terms presented by the city attorney and outside counsel.

City legal staff said the settlement is a global agreement that releases the city and the named plaintiffs and resolves multiple claims brought separately. Under the settlement, the total compromise payment is $260,000; city attorneys reported that the municipality’s insurance carrier, Chubb, will pay the settlement funds after the city’s deductible is satisfied. City staff said the city’s $100,000 deductible has been used to pay outside counsel fees incurred during litigation and that no additional city operating dollars will be paid toward the settlement itself.

“ The settlement provides that all parties release each other,” the city attorney told the commission during an executive‑session summary presented in public, adding that the agreement also provides for a neutral employment reference to the former manager and that the parties had finalized signatures following mediation.

Commissioners discussed whether to accept the proposed settlement or continue litigation. Several commissioners said that, although they had strong feelings about the underlying facts, they were persuaded that extended litigation would carry a substantial risk and could leave the city financially exposed to higher attorney fees and potential jury awards. Other commissioners argued the city should not settle in principle, but acknowledged the insurer’s recommendation to resolve the case.

The commission voted 5–2 to approve the settlement. A roll‑call recorded Mayor Michael Joseph, Commissioner Jean, Commissioner Phyllis Smith, Commissioner Flormont and Commissioner Danielle Lejon as voting yes; Vice Mayor Jay Chernoff and Commissioner Fortuna Smuckler voted no.

City attorney and outside counsel told the commission the insurer had been engaged during mediation and that Chubb had agreed to fund the settlement amount, which reduced the city’s direct financial exposure. Legal counsel also warned the commission that continued litigation would likely be protracted and could increase costs — including the potential for a significant judgment or higher plaintiff attorney fees — and could prolong public uncertainty.

The resolution approved the settlement and authorized the interim city manager to execute documents necessary to finalize the agreement.

Commission action: the commission approved Resolution R2025‑81 (settlement authorization). The motion carried 5–2.