The Borough of Wrangell has made another move in the on-going lawsuit against former Medical Center CEO Noel Selle-Rae and six of the recalled board members. The Borough filed an amended complaint against the seven defendants last week that added more arguments as to why the $520,000 already paid to Selle-Rae as part of his severance package should be returned.
In the complaint, the Borough states that Amendment 8 of Selle-Rae’s contract requires that all changes to his contract be approved in advance by a resolution of the WMC Board. According to the Borough, the second amendment, which guaranteed the $1.2 million severance package, was not approved in advance and thus is void and unenforceable. The board members’ verbal agreement to change the contract and pay him immediately also violates Amendment 8.
The borough also claims that Selle-Rae kept an iPad and a cell phone after being terminated. The complaint states that he discarded the phone and refuses to return the iPad. Such actions could be considered “spoiling evidence” since both devices might contain communication between Selle-Rae and the board about his termination.
Most of the other arguments against the seven defendants remain the same – Selle-Rae and the recalled members breached the contract by paying the severance pay before the 60th day after termination and by Selle-Rae not signing an agreement not to sue.