The Nonprofit
A large national nonprofit serving troubled youth.
The Situation
An employee with ongoing performance problems was eventually terminated, but alleged he was not given an accommodation due to stress in his personal life.
Unfortunately, the employee’s personnel file was not well documented on the performance issues, and the nonprofit had not addressed the accommodation request. The employee was highly paid, and the matter was heavily litigated over a four-year period.
The Resolution
Because of the potential for an unfavorable jury verdict and the significant exposure to statutory plaintiff attorney fees, the claim was eventually mediated to a settlement after legal defense expenses had been incurred.
From the Claims Files stories like the one above are intended to be informational in nature. Please contact your insurance broker and/or agent for your specific coverage implications based on your specific situation.