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Home Winning EEOC claims Settlements EEOC Settlement Agreement

Settlement Agreement can stop further legal action

civilrightsfed by civilrightsfed
February 2, 2020
in EEOC Settlement Agreement, Legal Actions, Settlement Agreement, Settlements
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settlement agreement can stop further legal action

in the settlement minutes, he did not agree to withdraw all administrative complaints, claims,

and investigations so paragraph (3)(a) is void; (4) in the settlement

minutes, he did not agree to refrain from initiating any other actions

against the agency based on any adverse actions that  allegedly occurred

before the effective date of the settlement agreement so paragraph (3)(b)

is void; and (5) in the settlement minutes, he did not agree to release

the agency from all claims or demands arising out of adverse actions

that allegedly occurred prior to the effective date of the settlement

agreement so paragraph (3)(c) is void. In addition, complainant alleged

that the agency failed to pay his travel expenses in the amount of

$750.00, which he stated is required by Federal Regulation for hearing

sites outside of the local commuting area in which the complaint arose.

Complainant indicated that he resides in Clarksville, Tennessee and the

hearing was held in Memphis, Tennessee.4  Complainant approximated a

six hour distance between the two.  Complainant requested reinstatement

of the underlying complaint at the point in which processed ceased –

the hearing stage — and the reimbursement of travel expenses.

In a final decision dated June 2, 2006, the agency denied complainant’s

request to void their agreement.  Specifically, the agency stated that

the parties are bound by the agreement read into the record on January

26, 2006 and the unsigned written agreement is void, complainant did

not allege that any party threatened him or conveyed an intention to

cause him harm or loss contingent upon him entering into a settlement

agreement nor that the circumstances warranted the involuntary agreement

to a settlement.  The agency noted that complainant had the benefit

of legal counsel to help prevent coercion or duress.  In addition, the

agency found that the January 26 verbal agreement does not provide for

mileage and lodging for complainant so he is not so entitled.

Complainant filed the instant appeal.  On appeal, complainant stated

that there was a delay in his attorney (LR) contacting him regarding the

agency’s written agreement and, when LR did contact him, he expressed

concerns to her about the written agreement5 and, on the hearing day, LR

provided information to him about her prior experiences with the assigned

AJ that pressured him to settle.  In addition, complainant reiterated his

previous contention that the agency added terms in the written agreement

that were not part of the oral agreement before the AJ and again requested

reinstatement of his underlying complaint at the hearing stage.

In opposition to complainant’s appeal, the agency stated that the agency

submitted the written settlement agreement to complainant’s attorney of

record, LR, twice but there is no technical requirement that the parties

sign the written settlement agreement when the terms of an agreement are

settled before an AJ and recorded on a hearing transcript; the agreement

is valid and enforceable; the agency has complied with the terms of the

agreement and any non-compliance is due to the actions of complainant6;

complainant failed to show that he agreed to the terms of the agreement

based on coercion or duress; and complainant was represented by an

attorney who would prevent any coercion or duress during the settlement

process.

EEOC Regulation 29 C.F.R. § 1614.504(a) provides that any settlement

agreement knowingly and voluntarily agreed to by the parties, reached at

any stage of the complaint process, shall be binding on both parties.

The Commission has held that a settlement agreement constitutes a

contract between the employee and the agency, to which ordinary rules of

contract construction apply.  See Herrington v. Department of Defense,

EEOC Request No. 05960032 (December 9, 1996).  The Commission has further

held that it is the intent of the parties as expressed in the contract,

not some unexpressed intention, that controls the contract’s construction.

Eggleston v. Department of Veterans Affairs, EEOC Request No. 05900795

(August 23, 1990).  In ascertaining the intent of the parties with regard

to the terms of a settlement agreement, the Commission has generally

relied on the plain meaning rule.  See Hyon O v. United States Postal

Service, EEOC Request No. 05910787 (December 2, 1991). This rule states

that if the writing appears to be plain and unambiguous on its face,

its meaning must be determined from the four corners of the instrument

without resort to extrinsic evidence of any nature.  See Montgomery

Elevator Co. v. Building Eng’g Servs. Co., 730 F.2d 377 (5th Cir. 1984).

In the instant case, the record reveals that, on January 26, 2006,

the parties verbally agreed to and read into a hearing record before an

AJ, terms of a settlement agreement.     Subsequently, the agency

memorialized an agreement between the two in writing and included

additional details and terms to those agreed at the hearing.  The agency

acknowledged that it twice sent the written settlement agreement

to complainant’s attorney, LR, in an attempt to obtain complainant’s

signature.  In addition, the agency acknowledged that it sent a lump sum

payment to complainant and complainant returned the payment.  Based on

the evidence of record, it is clear that complainant does not view the

matter as settled.  It is evidenced further that the agency did not view

the matter as settled as it attempted to obtain complainant’s signature

on a written settlement agreement that contained additional terms than

those provided on January 26 at the hearing.  We find that equitable

considerations mandate that the subject settlement agreement be found

void and the agency’s finding of no breach be VACATED. Accordingly,

we REMAND this matter to the agency for reinstatement of the underlying

EEO complaint from the point where processing ceased.

Lastly, EEOC Management Directive 110, 7-4 (November 9, 1999) provides,

“[i]f the Administrative Judge sets a hearing site that is outside the

local commuting area of the agency’s organizational component where the

complaint arose, the agency must bear all reasonable travel expenses

of complainants, their authorized representatives [as long as they are

federal employees.]”  Based on the record, the instant hearing was held

outside the local commuting area for complainant so the agency shall

bear all reasonable travel expenses of complainant.

5. if [complainant] rescinds or otherwise declares this Agreement void

for any reason, he shall return to the Army any monetary and non-monetary

benefits he received under this Agreement and the [agency] may revoke

all actions and promises made under this Agreement.

Robert W. Bendorf,

Complainant,

v.

Dr. Francis J. Harvey,

Secretary,

Department of the Army,

Agency.

Appeal No. 01200640131

Hearing No. 240-2005-000193X

Agency Nos. ARFTCAMP04NOV086352

DECISION

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