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Manhattan's little, quieter island and beyond

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Spencer-EL, Cerone, Smith Settle RIOC Lawsuit: How Much Did They Get?

The whistleblower lawsuit against RIOC resulted in a $225,000 settlement for three plaintiffs, who received modest individual compensation, without any admissions of wrongdoing by RIOC.

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How much draws a simple answer in terms of funds for the plaintiffs in the whistleblower lawsuit against RIOC and its executives. That is, “not much” in a settlement that looks like a big win for the defendants. And that goes beyond the dollar signs.

by David Stone

The Roosevelt Island Daily News

How Much Did the Plaintiffs Get?

An early paragraph preceding the settlement details was a clue…

“The Parties acknowledge that they are entering into this Agreement pursuant to a settlement and compromise of disputed claims strictly to avoid the burden, risk, cost, and expense of litigation…”

That means that none of the charges against RIOC CEO Shelton J. Haynes or Chief Counsel Gretchen Robinson were confirmed. That’s explicit in following paragraphs. All three plaintiffs also signed confidentiality and non-disparagement agreements. They pledged future silence about their complaints as well as promising no future litigation.

Erica Spencer-EL and Jessica Cerone at Lighthouse Park in better times.

The Settlements

  • Erica Spencer-EL received $75,000, broken down equally between lost wages and compensation for emotional distress, pain and suffering.
  • Amy Smith (now Uzenski) got $13,500, divided equally between lost wages and emotional distress, pain and suffering.
  • Jessica Cerone agreed to $61,500, dived as with her fellow plaintiffs.

RIOC pays an additional $75,000 to the plaintiffs’ attorney, covering legal costs. No punitive damages were awarded.

This brings RIOC’s total burden, excluding their own attorney and court costs, to $225,000.

Essential Details

Beyond the details of how much the trio received is something of a clean slate:

“Neither the negotiation, undertaking, agreement, nor execution of this Agreement will constitute or operate as an acknowledgment or admission of any kind by the Company that is has: (i) committed any unlawful, discriminatory or retaliatory actions; and/or (ii) violated any federal, state or local law, statute, ordinance, rule or regulation; and/or (iii) violated any common law requirement, duty or obligation; and/or (iv) incurred any liability of any kind to Ms. Spencer-El, Ms. Uzenski, and Ms. *Cerrone.”

    *At various points in the settlement agreement, Cerone’s name is misspelled as “Cerrone.” “Cerone” is correct.

    The Original Charges

    Spencer-EL, Cerone and Uzenski sued after being dismissed by RIOC. They claimed they were dismissed for being whistleblowers. They exposed alleged improper actions involving RIOC’s hiring of a contractor for a COVID emergency testing site. CEO Haynes, Chief Counsel Robinson and former executives Tajuna Sharpe and Altheria Jackson, the plaintiffs said, conspired in firing them.

    The defendants denied all charges and, if not fully vindicated, no longer face any liability for their actions. Going to trial seeking full vindication would have been far more costly. As a result, the settlement, while costing $225,000, saves RIOC and ultimately the community a bundle.

    How Much Will This Affect Other Cases?

    A number of other cases filed against RIOC and the Haynes administration remain. Former CEO Susan Rosenthal is suing over being denied due process in her dismissal. Longtime legal counsel Arthur Eliav and executive assistant Karline Jean also have retaliation and hostile workplace lawsuits pending.

    None of these link up with the Spencer-EL, Cerone, Uzenski settlement. It may have no impact.

    As for Haynes and Robinson, both currently suspended, they are also suing RIOC, claiming racial discrimination and other charges. That as well as their employment status has been up in the air for more than a year. There are no signs of a settlement, but the current apparent victory sheds a positive light on the pair.

    No lawsuit or investigation has, so far, confirmed any misconduct by either of the suspended executives.

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