Winthrop spends $32K in legal fight with Williamson

Winthrop University has spent more than $30,000 on legal costs related to the ongoing dispute with former President Jamie Comstock Williamson, according to information released recently to The Herald.

Williamson was fired on June 26 amid allegations from the Winthrop Board of Trustees that she violated state ethics law, lied to trustees, and mistreated campus employees. The former president has denied the trustees’ claims and has threatened to sue.

Last month, Williamson and school officials held mediation in an attempt to resolve the issues. The school only released information related to the cost of legal representation and services through Oct. 31, which means the November mediation was not included. The mediation was unsuccessful and school officials haven’t commented on what next steps, if any, will happen in the legal fight.

Represented by two attorneys with Jackson Lewis P.C. – a nationwide employment law firm – Winthrop has spent $32,384 so far. Williamson’s attorney has not returned The Herald’s phone calls and emails over recent months.

Part of the ongoing dispute is likely over Williamson’s claim that Winthrop trustees violated the terms of her contract when they suspended her and then fired her earlier this year.

Williamson signed a five-year contract with the university, beginning in July 2013. After she was fired by trustees “with cause” one year later, she was no longer paid and did not receive any additional money for the value of her contract.

Her contract guarantees the dispute resolution options of mediation and arbitration. University officials haven’t said whether a second round of mediation will happen.

The former president’s contract states that if mediation is unsuccessful, the parties will move to arbitration. Unlike mediation, legal arbitration is binding, based on a neutral arbitrator or arbitrators’ decision.

“It brings the dispute to finality,” said Michael Clark, spokesperson for the American Arbitration Association in New York. The association provides arbitration services and resources to clients in a range of industries, including those with employment disputes.

In the event of a dispute, Williamson’s contract calls for the former president and Winthrop to pursue arbitration following the American Arbitration Association guidelines for employment issues. The contract does not specify whether Winthrop must use the American Arbitration Association’s services.

Clark said the association does not comment on whether it is involved in specific cases, but he offered insight into arbitration in general.

Unlike litigation or a trial in court, arbitration is confidential, Clark said. Arbitration sessions are typically held in conference rooms.

Compared to lawsuits, arbitration is a less costly way of handling legal disputes, Clark said. And, the process usually moves more quickly. Arbitration can happen over several days or be completed in one day.

In arbitration, both parties are allowed to have lawyers present and usually do. One or three arbitrators are chosen to hear facts and determine which party is owed an award.

Williamson’s contract with Winthrop calls for a single arbitrator to hear the case, which is common in employment disputes, Clark said. In an employment dispute, the arbitrator will likely have specific experience in the field of employment law.

Decisions from an arbitrator are enforced by a written agreement, and state and federal laws. Appeals of an arbitrator’s decision are rarely successful unless based on a claim that the arbitrator was biased, Clark said.

Typically, arbitrators find in favor of one party instead of “splitting” the award between the two, he said.

Employers and employees often lean toward including “dispute resolution” clauses in contracts because it protects both sides, Clark said. And, “it keeps the (dispute) process quick. It keeps the process confidential.”

It’s unclear whether the dispute resolution clause in Williamson’s contract would limit her ability to sue the university. The section states that arbitration will be used for disputes stemming from issues related to termination or breach of the employment contract.

Williamson has threatened to sue the school for breach of contract and to sue individual trustees for slander and defamation.

University officials haven’t said whether Winthrop is prepared to financially settle with Williamson to avoid a lawsuit or further legal battles. The Herald sent several questions to Winthrop spokesman Jeff Perez who said the questions could not be answered by Friday afternoon.

Among those questions was an inquiry into how the school is paying for the legal costs and whether Williamson has requested arbitration.

This story was originally published December 20, 2014 at 3:42 PM with the headline "Winthrop spends $32K in legal fight with Williamson."