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A resolution authorizing the Metropolitan Department of Law to compromise and settle the claims of Joseph Webb, D.Sc. FACHE against the Metropolitan Government of Nashville and Davidson County and the Metropolitan Hospital Authority of Nashville and Davidson County in the amount of $890,813.26 with said amount to be paid from the Judgments and Losses Fund.
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WHEREAS, pursuant to the Chief Executive Officer Services Agreement between the Metropolitan Hospital Authority of Nashville and Davidson County (“Hospital Authority”) and Joseph Webb, D.Sc. FACHE (“Joseph Webb”) dated as of September 1, 2022 (the “Contract”), the term of Joseph Webb’s employment concludes on June 30, 2025; and,
WHEREAS, Jospeh Webb has asserted a claim for compensation and benefits arising from the Contract and/or his employment with the Hospital Authority, including without limitation, back and future pay, and for an unfunded retirement benefit that he claims the Hospital Authority promised to pay him; and,
WHEREAS, the Metropolitan Department of Law believes that the settlement listed in Section 1 below is fair and reasonable and in the best interests of the Metropolitan Government, and recommends that any and all claims or causes of action brought or that could have been brought by Joseph Webb related to the Contract or arising out of his employment with the Hospital Authority, be compromised and settled for $890,813.26.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Department of Law is authorized to compromise and settle the claims of Joseph Webb for the sum of $890,813.26 with said amount to be paid from the Judgments and Losses Fund.
Section 2. The Severance Agreement and Release, attached hereto and incorporated herein, is hereby approved and Derrick C. Smith, Senior Counsel, on behalf of the Department of Law is authorized to execute the same.
Section 3. This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves a settlement agreement and release between the Hospital Authority and Dr. Joseph Webb, D.Sc. FACHE.
Pursuant to a separate Chief Executive Officer Services Agreement, Dr. Webb was employed for a new term as Chief Executive Officer of Nashville General Hospital as of September 1, 2022. The term of his employment was set to end on June 30, 2025. Dr. Webb has asserted a claim for compensation and benefits under the contract, including back and future pay and for an unfunded retirement benefit that he claims the Hospital Authority promised to pay him.
Pursuant to the terms of the agreement, the Metropolitan Government would provide a one-time retirement payment of $890,813.26 to Dr. Webb. In exchange, Dr. Webb would release the Metropolitan Hospital Authority, Nashville General Hospital, the Metropolitan Government and any Metro affiliates of any and all claims. In addition, Dr. Webb would agree to vacate his office and cease working on March 14, 2025, and return all work files and equipment provided to him to the Hospital Authority. Dr. Webb would be paid his salary and benefits through June 30, 2025.
This settlement would become binding on the parties (1) upon approval of the Hospital Authority, (2) upon approval of the Metropolitan Council, and (3) upon approval of the supplemental budget appropriations for Nashville General Hospital for FY2025 by the Metropolitan Council.
Dr. Webb will be responsible for any and all tax liability related to the settlement as well as any third-party subrogation rights or other interest in the settlement. Further, Dr. Webb agrees to bring any suit or action against the Metropolitan Government or the Hospital Authority for related to any claim released by the agreement.
Fiscal Note: The total settlement amount is $890,813. This settlement along with Resolution Nos. RS2025-1115 and RS2025-1127 would be the 6th, 7th, and 8th payments, after approval by Metropolitan Council, from the Judgment and Losses Fund in FY25 for a cumulative total of $1,925,427. The fund balance would be $16,480,454 after these payments.