CITY OF KINGSTON

OfTice of the Mayor

mayor@kingston-ny. gov

T. Noble
Mayor

Steven

FOR IMMEDIATE RELEASE

March 1,2016

Mayor Steve Noble announces the settlement of long stnding lawsuits, rensttement of Assistant Fire Chief
Kingston, N.y. -- Mayor Steve Noble announced late Tuesday evening the settlement of a nearly four year long
legal dispute between the City of Kingston and former Assistant Fire Chief Chris Rea.
,oAfter much discussion and negotiation,

I can announce that we have come to agreeable terms with Mr.

Rea.

want to thank our legal team wo worked diligently on this issue, as well as members of the Common Council
who responded to our request for bonding," Mayor Noble stated.
The
The Common Council's Finance Committee approved the request for bonding in the amount of $300,000.
no
terms of this settlement ensure that all legal prceedings, both cunent and potential, are resolved and that
not
was
agreement
other financial obligations can be claimed against the city. Mayor Noble noted that this
"While
entered into lightly, and that his focus *ur und remains to be his responsibility to Kingston's taxpayers.
resolution."
responsible
the financial impact is difficult, I firmly believe this is the most fiscally and morally
..This has been a challenging road for all involved, but I am confident that we as a community will move past
this unfortunate situation together. This is the right direction," Mayor Noble stated.

Mr. Rea is expected to return to work

as Assistant Fire Chief on March

7,2016.

..On behalf of the City of Kingston, I want to welcome Mr. Rea back to work," Mayor Noble stated.

(845) 334-3904' www.kinsstotr-trv'gov

City Hall. 420 Broadway ' Kingstort, New York 12401 ' (345)334-3902' Fax

Resolution 59 of 2016
RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF KINGSTON, NEW YORK,
AUTHORIZING SETTLEMENT OF CHRISTOPHER REA LAWSUIT AND ADOPTING A
REA
BOND ORDINANCE IN THE SUM OF $1O5,OOO.OO TO SETTLE THE CHRISTOPHER
LAWSUIT
Sponsored

By:

Finance and Audit Committee: Aldermen:

\ryHEREAS, a settlement has been reached in the Christiopher Rea case against the
City of Kingston; and

WHEREAS, it is in the best interests of the City of Kingston to settle the lawsuit
brought by ChristoPher Rea.
THE
NOW THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
CITY OF KINGSTON, NEW YORK, AS FOLLOWS:
That the Common Council of the City of Kingston authorizes the
in the
settlement of the lawsuit brought by Christopher Rea against the City of Kingston
amount of $300,000.00.

SECTION-I.

That the Common Council of the City of Kingston authorizes the

to pay towards the
sum of $105,000.00 to be provided through General Municipal bonding
settlement of the Christopher Rea matter.

SECTION-2.

That the Common Council of the City of Kingston authorizes the

Mayor to enter into and execute a Settlement Agreement and Release'

SECTION-2.

bnCuON-S.

This resolution shall take effect immediately.

Submitted to the MaYor this

daY

Approved by the MaYor this

of

Steven T. Noble, MaYor

Carly Winnie, CitY Clerk

Res

59

20

6 Authorize Settle Chris Rea lawsuit

daY

2016

20r6

Adopted by Council on

_.-_

2016

of

$ITTLMSNT AG&EMENT ANp RpLEASE

THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE

..Agreement") is made and entered

into

ts

I&v

(hETEiNAftET

of February,2A16, by and between

("city")'
CHRISTOPHER REA (hereinafter "Rea") and the CITY oF KINGSTON, New York
Fire
WHEREAS, the City suspended Rea without pay from his position as Assistant

Chiefon February 9,2012; and

pursuant to New
WHEREAS, the City brought a disciplinary proceeding against Rea

york

State

Civil Service Law

Assistant Fire Chief and

$ 75, seeking to terminate his position as

pursuant to
that proceeding resulted in a hearing conducted before a hearing officer appointed

civil service Law $ 75 on December g,2}l3,February 21,20l4,March }l,zal4,April 3,2014

and

April

11, 2014; and

law dated July

WHEREAS, the hearing officer issued findings of fact and conclusion of
back pay
l,Zl4recommending that all charges be dismissed and Rea be reinstated with full

and

benefits; and

in part and
V/HEF,EAS' then Mayor Shane Gallo ("Gallo') issued a Decision accepting
Rea from his
rejecting in part the hearing officer's recommended decision and terminating
position as Assistant Fire chief effective october 14,2014; and

76 seeking to
WHEREAS, Rea brought a proceeding pursuant to Civil Service Law $

review and rescind the decision

reinstatement with

full back pay

of Gallo terminating his position

and ordering Rea's

and benefits; and

pending before the

WHEREAS, the proceeding challenging the termination is currently

titled: Christopher Rea v'

New york State Appellate Division Third Department in a proceeding
Mayor, Ulster County
The City of Kingston and Shane R. Gallo in His Official Capacity as
Index No. 14-3659, Appellate Division DocketNo. 5213l; and

WHEREAS, Rea brought a series

of

proceedings challenging the City's suspension

in a
without pay as a violation of Civil Service Law $ 75 (3) and said proceedings resulted
of Rea and as
Decision, Order and Judgement of the Supreme Court dated June 15, 2015 in favor
against the

v.
City of Kingston in the amount of 8219,227 .23 inthe case titled: Chnistopher Rea

County
The City of Kingston and Shane R. Gallo in His Offciat Capacity as Mayor, Ulster

IndexNo. l2-31l0; and

stay of
WHEREAS, the City filed an appeal from that Judgement thereby invoking a
enforcement. That case

is cunently before the Appellate Division Third Department in a case

capacity
titled: Christopher Rea v. The City of Kingston and Shane R. Gallo in His official

as

issues about
Mayor, Appeltate Division Docket No. 521362. In that Appeal the City is raising

altemate sources of income as a setoff to back pay; and

in the
WHEREAS, Rea has a6vised the City that he is prepared to fle a Complaint
that he is entitled to
United States District Court for the Northern District of New York alleging
on alleged violations
compensatory damages for his emotional distress and defamation based

of

including his
his constitutional rights in connection with the termination of his employment,
and his suspension
liberty interest in his good name and his property interest in his employment,

without pay prior to a hearing in violation of New York state

WHEREAS, Rea and the City desire

to

civil service Law $ 75 (3); and

settle filly, finally and

in good faith

all

in

the

embodied
differences between them, including, but not limited to those differences

collectively the "claims"), as

aforementioned proceedings and potential proceedings (hereinafrer
result of the incident(s)
well as any and all other claims either party has or may have had as a
alleged in the claims'

promises herein
NOW, THEREFORE, in consideration of the premises and mutual
contained, it is agreed as follows:

Rea

will be reinstated to his position as Assistant Fire Chief for the City of

form attached as Exhibit A'

Kingston Fire Department with an employment agreement in the
2

Said reinstatement to employment

will be effective

retroactive to February 9,2012.

2.
Walsh

The City

will pay and cause to be delivered to Rea's

counsel (Gleason, Dunn,

& O'Shea) three checks as described below totaling THREE HUNDRED THOUSAND

AND 00/100 DOLLARS ($300,000.00), in full, final and complete settlement of the monetary
claims of back pay and other monetary damages, including, but not limited to, any claims for

Workers' Compensation benefits, lost eamings, compensatory damages, punitive damages,

attorneys' fees, and expenses and costs which Rea and/or his attomeys may have incuned in
connection with the

claims. Said Settlement is subject to all applioable employment

and

wittrholding tax. Accrual time will be eaned effective January 1,2016, and any previous accrual

time will be satisfed with this settlement. Said Agreement may be subject to approval by the
Common Council.

a.

One gross payroll check (less all applicable tax and payroll tax deductions) made
ONE HUNDRED NINETY
payable to Christopher Rca in the gross amount
THOUSAND and 001100 DOLLARS ($195,000.00) (the City will be
responsible for and separately pay its portion of the payroll taxes). This payment
is intended to reimburse Rea for his back pay and benefits retroactive to February
9,20l2minus alternative income earned in the period;

of

FM

b.

One check payable to Maynard, O'Connor and Smith in the amount of

TWELVE THOUSAND FIVE HUNDRED and 00/100 DOLLARS ($12,500.00);
and

c.

One check payable to Gleason, Dunn, Walsh & O'She in the amount of
NTNETY TWO THOUSAND FM HUNDRED DOLLARS ($92,500.00).

These payments must be

in hand to Gleason, Dunn, \I/alsh & O'Shea not later than

March 31,20L6.

3.

The City wilt take all necessary steps to make contributions to the New York

State Police and Fire Retirement System to allow for the restoration of Rea's time in service in

the Police and Fire Retirement System for the period February 9,2012 through the date of Rea's
reinstatement to the position of Assistant Fire Chief; and
3

4.

The Parties acknowledge that the settlement amounts characterized as back pay

are based on considerations including other sources

of income

earned

by Rea during the period

between February 9,2012 and the date of his reinstatement as Assistant Fire Chief.

5.

Rea

will be issued a Form W-2 for the $195,000.00 check, a Form

1099 for the

$12,500.00 check to Maynard, O'Connor and Smith and a Form 1099 for the $92,500.00 check

to Gleason, Dunn, Walsh & O'Shea. Maynard, O'Connor and Smith and Gleason, Dunn, Walsh

& O'Shea will be issued a Form 1099 for their checks.

6.

The City and Rea through their attorneys will execute and file Stipulations of

Discontinuance for all pending actions upon acceptance and approval of this agreement. Copies
of the Stipulations of Discontinuance are attached as Exhibit B.

7.

This Agreement is not and shall not in any way be construed as an admission by

the City or any of its directors, officers, agents, employees or representatives, of any acts of
carelessness, recklessness, negligence, or that the City violated any federal, state or local law, but

constitutes the good faith settlement of any and all disputed claims. The parties have entered
into this Agreement for the sole purpose of resolving the issues contained in the aforementioned
claims, and to avoid the burden, expense, delay and uncertainties of litigation.

8.

Rea's attomey will fully execute a Satisfaction of Judgment in connection with

the actions. Once fully executed, the City's attorney

will hold the Satisfaction of

Judgment in

escrow pending performance of this Agreement by the City.

9.

In consideration of or on behalf of the payments by the City to Rea set forth in

Paragraph 1, Rea hereby irrevocably and unconditionally remises, releases, and forever
discharges the

City and each of its agents, directors, offtcers, employees, and representatives,

including the Mayor, and their predecessors, successorso heirs, executors, administrators and
assigns, and all persons acting by, tlrough, under or in concert with any of them in their official

capacities (collectively "Releasees"), of and from any and all actions, causes of actions, suits,
debts, charges, complaints claims, liabilities, obligations, promises, ageementso controversies,

damages, and expenses (including attorneys' fees and costs actually incurred),

of any nattue

whatsoever, in law or equity, which he ever had, now has, or which he or his heirs, executors and

administrators hereafter may have, particularly, against each or any of the Releasees, from the
beginning of time to the date of this Agreement, but without limitation of the foregoing general
terms, by reason of any claims against the City arising from or related to matters or allegations

which are the subject matter of the claims, including any claims arising from any alleged
violation of any federal, state or local statutes, ordinances, or laws, relating to Rea's employment
with the City or otherwise.

10.

Provided the City complies with its ta:< reporting, tax withholding and x

payment obligations as set forth in paragraphs 2(a), 2(b),2(c) and 5 above, Rea
responsibility for payment of his share of all federal, state and local income taxes,
taxable portion

will

if

assume

any, in any

of the settlement funds. With the above proviso, Rea understands that the City

has not made, and

sums paid pursuant

it

does not rely upon, any representations regarding the tax treatment of the

to this Agreement. Rea agrees to indemnit and hold harmless in the event

any govemmental taxing authority asserts against the City any olaim for unpaid income taxes,
failure to withhold income taxes, penalties, or interest based upon the payment of the Settlement
Agreement.

11.

Rea represents and certifies that he has carefully read and

fully understands all of

the provisions and effects of this Agreement, and has thoroughly discussed all aspects of this
Agreement with his attorney; that Rea is voluntarily entering into this Agreement; and that
neither the City nor its agents, representatives or attorneyso made any representations concerning
the terms or effects of this Agreement other than those contained herein.

12.

Rea and the City expressly acknowledge that this Agreement and the Releases

contained herein are intended to include in their effect, without limitation, all claims which have
arisen and of which Rea or the City knows or does not know, should have known, had reason to

het'eof,
know or suspects to exist in Rea's favor or in the City's favor at the time of execution

or claims.
and that this Agreement contemplates the extinguishment of any such claim

13.

in
This Agreement is made and entered into in the State of New York, and shall,

language of all
all respects, be interpreted, enforced and govemed under the laws of sane. The

fair meaning,
parts of this Agreement shall in all cases be construed as a whole, according to its
and not strictty for or against any of ttre parties.

14.

by any
Should any provision of this Agreement be declared or be determined

provisions shall not be

court to be illegal or invalid, the validity of the remaining Prts, terms or
not to be a
affected thereby and said illegal or invalid part, terms or provision shall be deemed
part of this Agreement.

15.

This Agreement and General Releases may be executed in any number of

long as original
counterparts, all of which shall constitute one and only one Agreement. So
signatures ofeach party are secrned, the Parties agree that
be on a single page.

it is not necessary that all signatures

A faosimile copy of this Agreement will

have the same force and effect as

the original.

16. This Settlement Agreement and General

Releases set

forth the entire

agreement

or understalrding
between the parties hereto, and fulty supersede any and all prior agreement
between the parties hereto pertaining to the subject matter hereof.

REA'
IN WITNESS WHEREOF, and intending to be legally bound hereby, CHRISTOPHER
has executed the foregoing Agreement.

Executed

thisfidav

6.

ot

Christopher

T. Noble, Mayor

STATE OF NEIW YORK

) ss.
COUNTY OF ULSTER

201, bcfore tae, the undersigRed, a Notary Public in and

REA, personally known to me or proved
for said State, personally apBeared
name is subscribed to the
to me on the basis of satisfactory evidence to be the individual whose
same in his capacity, and that
withn instrument and he acknowledged to mo that he executed the
of which the
by his signature on this instrument, the individual, or the person upon behalf
individual acted, executed the instrument.

on the l39n*, of

N
NewYot

STATE OFNEW YORK

COUNTY OF ULSTER

)
) ss.:
)

Cmrdstm

onthis.'{,,,dduyofw,20l6,beforemepersonllycameSteyen.T.Noble,iome

Kingston'
*1t", iriffiy sworn $id depry and say.t\d he resides in
i4
describsd
corporation
munigipgl.
New york, rhat he i; t" ll[y"; of the City of tCiogtton, fhe
that the seal
personalty known,

kiows the seal of d corporation;

and which executed, the wthin lnstrument; ittut
seal; that it was so affixed by order of the Common
affixed to said lnstrument is such
"orpotuft
by like order'
Council of said corporation; and ttrat h signed his name thereto

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