The City of Manassas today reached a settlement agreement with the Washington, Dc-based Equal Rights Center, HOME and eleven residents of Manassas in relation to allegations that the City discriminated against Hispanic residents. There are three primary reasons, in my view, why we settled:
1. There were several complaints against the City. If the City lost on any of the specific complaints, we would have been liable for the plaintiff’s attorney fees and also damages. Our exposure there was considerable – in between $4 and $7 million dollars. We didn’t have to lose on all of them, just one.
2. The insurance company had notified us that they were content with the settlement number and if we decided not to settle that any future award or settlement would be borne entirely by Manassas City. Needless to say that an award of $5+ million dollars would be catastrophic.
3. The legal action was just getting started. If we had proceeded to discovery and trial, the costs would have exploded and far outstripped the money that we had already spent and if we would have lost, the entire nut would have been paid by Manassas taxpayers.
So, at the end of the day, I wasn’t prepared to leave my home town to the tender mercies of a Federal jury in Alexandria. This is a business decision, pure and simple in order to limit the damage to Manassas. Trust me when I say that it isn’t on my list of fun things to do.