Placer County Grand Jury
• 1999-2000
Sierra Community College District Secret Settlement of Gender Discrimination Lawsuit Complaint 98b-32
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 11 findings
F1
The lawsuits filed by Debra Furtado against Sierra College, its President and the other named employees was settled for a payment of $300,000 cash and a $250,000 annuity payable to Furtado over a five year period at the rate of $55,347.62 per year.
No recommendations for this finding
F2
At the time of the signing of the settlement agreement stating a payment of “$1.00 and additional valuable consideration” all defendants except the college President, one employee of the college, and the college itself had been dismissed as defendants in the case.
No recommendations for this finding
F3
The defendants, the college President, the college employee and the college were each represented by separate law firms throughout the litigation process.
No recommendations for this finding
F4
The attorney representing the college President drafted the Settlement Agreement stating a payment of “$1.00 and additional valuable consideration” as well as the confidentiality clause with penalties of $100,000 for revealing the actual settlement amount.
Related Recommendations (1)
R1
The practice of “confidential” settlements of lawsuits by a publicly supported institution is misleading to the public and unacceptable to the Grand Jury. Such confidential settlements erode public confidence in the integrity of its elected and appointed officials and could be perceived as a “cover up” whether or not an actual cover up is intended. The Grand Jury believes that Sierra College specifically and public institutions generally should not enter into “confidential” settlement agreements such as were utilized in the Furtado lawsuits.
F5
The settlement amount of $550,000 was substantial for an employment case of this type and could not be called a “nuisance” settlement.
No recommendations for this finding
F6
The attorney for the college denies in a news article dated 11/25/99 that his clients, the college administration, employees and Board of Trustees have knowledge of the true settlement amount of the Furtado lawsuits.
Related Recommendations (1)
R1
The practice of “confidential” settlements of lawsuits by a publicly supported institution is misleading to the public and unacceptable to the Grand Jury. Such confidential settlements erode public confidence in the integrity of its elected and appointed officials and could be perceived as a “cover up” whether or not an actual cover up is intended. The Grand Jury believes that Sierra College specifically and public institutions generally should not enter into “confidential” settlement agreements such as were utilized in the Furtado lawsuits.
F7
At least one member of the Sierra College Board of Trustees was notified by legal counsel for the Board of Trustees that the lawsuits had been settled and revealed the dollar amount of that settlement.
No recommendations for this finding
F8
Testimony from Sierra College Board of Trustees members revealed that the majority of the Board was informed of the settlement of the Furtado lawsuit only when they read about it in the newspapers.
Related Recommendations (2)
R2
The Sierra College Trustees are elected officials. As such, they have a responsibility to see to it that the institution is well managed. They are expected to set policy for governance of the college, its officials, employees, students and physical assets. To achieve these goals, they must receive information that is accurate and reliable. Such information may come from many sources, but principally it should come from college administrators. In the Furtado matter the Trustees were ill informed in that they had not received the details of the settlement. Despite that lack of knowledge, none of them, either individually or collectively, made any inquiries into the terms and conditions of the settlement of a multi-million dollar lawsuit that attacked the discriminatory personnel practices of the Sierra College administration. The Grand Jury believes that the Board of Trustees in their role of fiduciaries should never relinquish control over settlement of lawsuits as they did in the Furtado matter.
R3
The Grand Jury believes that Sierra College is a fine educational institution that delivers a sound educational product for its students and that its employees who provide that instruction are dedicated professionals. It is unfortunate for the college and its employees that the matters addressed in this Grand Jury report were ever allowed to occur. The Grand Jury further believes that truth in the conduct of public affairs is essential and to that end recommends that the facts of the Furtado lawsuits and settlement be investigated and revealed to public scrutiny by the college Board of Trustees and administration as promptly as possible. RESPONDENTS Sierra College Board of Trustees RESPONSE REQUIRED WITHIN 60 DAYS TO: * The Honorable Larry D. Gaddis Presiding Judge, Superior Court County of Placer Historic Courthouse 101 Maple Street Auburn, CA 95603 * Editors Note: Sierra Community College District’s response immediately follows this report. No further response is required.
F9
The settlement of the lawsuits filed by Furtado in the U.S. District Court, Eastern District, was “contingent upon the approval by the Board of Supervisors {sic}” as stated by Garland Burrell, Jr., United States District Court Judge, by order dated 12/31/1998.
No recommendations for this finding
F10
The Sierra College Board of Trustees, acting together as a governing body, was never told the actual amount of the settlement of the Furtado lawsuits nor did they ever vote, ratify, approve or sign any settlement document in their official capacity or any capacity at all.
Related Recommendations (2)
R2
The Sierra College Trustees are elected officials. As such, they have a responsibility to see to it that the institution is well managed. They are expected to set policy for governance of the college, its officials, employees, students and physical assets. To achieve these goals, they must receive information that is accurate and reliable. Such information may come from many sources, but principally it should come from college administrators. In the Furtado matter the Trustees were ill informed in that they had not received the details of the settlement. Despite that lack of knowledge, none of them, either individually or collectively, made any inquiries into the terms and conditions of the settlement of a multi-million dollar lawsuit that attacked the discriminatory personnel practices of the Sierra College administration. The Grand Jury believes that the Board of Trustees in their role of fiduciaries should never relinquish control over settlement of lawsuits as they did in the Furtado matter.
R3
The Grand Jury believes that Sierra College is a fine educational institution that delivers a sound educational product for its students and that its employees who provide that instruction are dedicated professionals. It is unfortunate for the college and its employees that the matters addressed in this Grand Jury report were ever allowed to occur. The Grand Jury further believes that truth in the conduct of public affairs is essential and to that end recommends that the facts of the Furtado lawsuits and settlement be investigated and revealed to public scrutiny by the college Board of Trustees and administration as promptly as possible. RESPONDENTS Sierra College Board of Trustees RESPONSE REQUIRED WITHIN 60 DAYS TO: * The Honorable Larry D. Gaddis Presiding Judge, Superior Court County of Placer Historic Courthouse 101 Maple Street Auburn, CA 95603 * Editors Note: Sierra Community College District’s response immediately follows this report. No further response is required.
F11
The members of the Board of Trustees testified that they did not ask questions regarding the settlement because this matter was handled by the insurance company.
No recommendations for this finding