Named in the suit was the village itself, along with Law Director Michael McNamee, Mayor David Nickerson, Village Manager Rob Anderson and council members Nicole Adkins, Timothy Back and Melissa Sexton.
Council recently approved a settlement agreement with Hensley, following a mediation session in October. The agreement includes a $70,000 payout.
A Dayton Daily News request for the full settlement agreement is still pending with the village.
The $70,000 settlement will be paid out through the village’s insurance policy and will not come from the general fund, McNamee said.
The village’s insurance company felt a payout would be more appropriate, according to McNamee, as opposed to further costs accrued through continued litigation.
“Council was quite reticent, at least those who were sued, to enter into any type of settlement agreement because there was strong conviction that there was no wrongdoing whatsoever,” McNamee said during the Dec. 2 village council meeting.
“The insurance company exercised its prerogative to do an economic valuation on the suit and made a determination that it was indeed better to pay the cost of defending the suit, at least a small portion of that, in order to get the suit dropped,” he continued.
In his complaint, Hensley made several accusations, including that the village committed a breach of contract, deprivation of rights, defamation, tortious interference with employment relationship and promissory estoppel.
Promissory estoppel is a legal doctrine where the court could force one party to uphold a promise, even without a formal contract, if the person to whom that promise is made relied on that promise to their detriment. Examples could be things like job offers, retirement benefits, charitable pledges and so on.
The village violated Hensley’s contract, he contended, by failing to pay Hensley the remainder of his base salary or accrued leaves following his termination, as stipulated within his employment agreement.
McNamee stressed the settlement agreement does not include an admission of guilt or liability on behalf of himself, the village or its council members.
The village and several administrators are also involved in an ongoing lawsuit filed by ousted village manager Glena Madden, who was fired alongside Hensley in 2024.
Madden makes several accusations in her filing, including breach of contract, civil conspiracy, defamation, promissory estoppel and more.
Madden previously filed a writ of quo warranto against the village and then-manager Anderson, calling for her reinstatement.
A judge in that case ruled in favor of the village, denying Madden’s request in December 2024.
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