To the contrary, a jury determined that Campbell was 100percentt at fault, and a judgment was returned for $185,849, far more than the amount offered in settlement.
First, the minimal amount offered in settlement does not provide any benefit that outweighs the cost and delay of going forward, especially since it is too early to judge the likelihood of success on the merits.
"The court finds that the amount offered in settlement is fair, adequate, and reasonable, and accordingly concludes that this factor weighs in favor of final approval," wrote Judge Curiel, who approved the agreement and dismissed the objection in a 31-page order.
"The amount offered in settlement provides significant and immediate recovery," Curiel wrote.
"I felt he would damage his career irrevocably by paying a huge amount in a settlement," Fields says.
Sol Weiss, a lead counsel on the Plaintiffs Steering Committeee, said that while the amount in the settlement was important, expediency was also critical.
The basis of his claim was a clause in the co-op's bylaws that required the corporation to indemnify board members for any "judgments, fines, amounts paid in settlement and reasonable expenses" incurred as a result of their good-faith actions on behalf of the corporation.
"The first precaution that should be taken by boards concerned about this issue is to review their bylaws to make sure that all existing loopholes are adequately plugged," Mr. Cholst said, adding that if the bylaws do not permit reimbursement for "judgments, fines, amounts paid in settlement and reasonable expenses," they can be amended to do so.
But the amount paid in settlements has more than doubled over the last decade.
There was no significant change in the proportion of paid claims resolved by settlement versus judgement over time (p=0.83); nor was there a significant change in the mean payment amount in either resolution group (settlement, p=0.94; judgement, p=0.36).
The $50 million includes a $16.7 million cash amount, and $33.3 million in "Settlement Credits" that will supply the aggrieved with free movies, among other options.
