The Town of Erin reached a settlement in a lawsuit with a former senior level manager, but won't or can't say how much it cost the municipality.
According to a lawsuit filed in Toronto on March 26 of this year, Nick Colucci was seeking $200,000 in damages alleging he was wrongfully dismissed while on medical leave and following an investigation into claims of harassment against him.
A court order stated the lawsuit was dropped three months later by Colucci without costs.
In an emailed statement from the Town of Erin through spokesperson Chris Vernon, it confirmed a settlement was reached but declined to give any details, including the amount paid out.
“We recognize the importance of resolving disputes without prolonged litigation, and the matter has been resolved,” the Town said.
“The Town respects the privacy of all employees, current and former, and out of respect for the individual involved in the matter and the conditions of the settlement, no further statements will be made.”
EloraFergusToday reached out to Colucci for comment, but did not immediately get a response.
The statement of claim said Colucci started with the Town in August 2019 as the director of infrastructure services, a senior-level role at a base salary of $142,000 plus benefits, pension, five weeks paid vacation time and an annual bonus over $7,000.
In early August 2023, Colucci was informed by then-CAO Nathan Hyde through email that there were two written harassment complaints and one verbal harassment complaint filed against him. The emails did not contain any particulars about the allegations made against him.
“Mr. Colucci suffered a panic attack in response to being told about the allegations and went home sick that same day,” the statement of claim said.
Later that same day he also received a warning letter from the Town ordering him to cease communications with other employees on the matter and “threatening to suspend him without pay if he spoke to other employees about the investigation.”
After still experiencing mental health symptoms the following day, Colucci visited his doctor, who ordered him to take an immediate medical leave. According to the claim, days later he received a letter from the Town placing him on unpaid suspension, alleging he had spoken about the investigation with members from his team.
The lawsuit claims Colucci could not have talked with other Town employees about this as he was not aware of the allegations or in the workplace at the time due to his medical leave.
Through legal counsel, Colucci objected to the improper suspension, but the Town refused to rescind it.
The Town retained an investigator to look into the harassment allegations and commenced a second investigation about an alleged “procurement incident” that supposedly occurred in 2021.
In December 2023, the harassment investigator released their findings, concluding some of Colucci’s alleged conduct fell within the “low and middle part of the spectrum” of workplace harassment, but went on to state many of the incidents did not amount to workplace harassment.
The statement of claim noted Colucci had not seen the findings of the procurement investigation, but said those allegations were “baseless” and the Town failed to particularize any liability allegedly caused by the defendant.
“The forgoing baseless allegations and biased investigation had a devastating effect on Mr. Colucci culminating in his suffering from mental health issues,” the statement said.
The Town of Erin officially fired Colucci in early January 2024, which the statement of claim alleged was a wrongful dismissal handled in “bad faith” and therefore Colucci is entitled to reasonable notice of termination or payment in lieu.
It also said he was owed damages for violations to the Human Rights Code, punitive damages, special damages and costs.
In its statement of defence, the Town of Erin claimed Colucci’s termination was justified as his actions were “tantamount to wilful misconduct, disobedience and/or wilful neglect of duty that is not trivial and has not been condoned by the employer.”
The Town denied it engaged in any wrongdoing and that Colucci was entitled to any of the damages claimed.
