Legal costs reach over $1 million in Allyn vs. FUESD lawsuit

Legal costs have now reached over $1 million (combined) in the Allyn vs. Fallbrook Union Elementary School District (FUESD) case that was filed in 2012.

To date, legal costs paid to defend FUESD in the wrongful termination lawsuit brought about by Elaine Allyn, the district's former information technology (IT) director, are said to be $630,592. These are costs that have been charged by the district's (JPA) legal counsel, Stutz, Artiano, Shinoff & Holtz. This information was obtained by the Village News after it filed a request under the California Public Records Act with the San Diego and Imperial County Schools Risk Management Joint Powers Authority (JPA).

Allyn's legal counsel, Michael Curran of Curran & Curran Law, said their client has sustained over $400,000 in legal fees and costs thus far in the case.

Allyn filed the suit against the district after being terminated in May of 2012, saying what led to her losing her job was her refusal to delete email archives in an effort by her supervisors (superintendent Candace Singh and associate superintendent, business services Ray Proctor) to cover up a violation of public policy by misusing public funds.

On Feb. 26, a North County Superior Court jury unanimously found that Allyn had been wrongfully terminated and retaliated against, awarding her a total of $1.19 million in collective damages. "On Ms. Allyn's primary claim for retaliation for whistleblowing under Labor Code 1102.5, the jury unanimously determined the district was liable and awarded her full compensatory damages of $1,046,000 and $148,000 in emotional distress damages; $48,000 more than we asked for in closing arguments," Curran said.

On March 25, Stutz, Artiano, Shinoff & Holtz, filed two new motions on behalf of FUESD – a Motion for Judgment Notwithstanding the Verdict and a Motion for New Trial. The motions ask for a complete reversal of the verdict and asks the court to determine if a new trial is warranted.

"Frankly, we are very surprised that after board members attended this trial, heard the evidence of misconduct, heard evidence of undeniable, significant inconsistent testimony of Singh, Proctor, and Bixler, and Mr. Shinoff's (FUESD attorney) over-involvement in all of the misconduct leading to Ms. Allyn's retaliatory and wrongful termination, and this clear verdict, the board has not demanded an independent investigator/counsel review the entire case...," said Curran.

"The public should also know that we made numerous offers to settle this case pre-litigation and during the litigation," added Curran. "Our original settlement demand was less than half of the current judgment. Our offers at settlement conference and during trial was to advance her retirement to the 20-year level which had a value to Ms. Allyn of approx. $700,000 over the next 25 years and pay $250,000 in fees and costs. All offers were ignored/refused and we question whether they were even communicated to [FUESD]/the JPA by Mr. Shinoff. "

By that comment, Curran referenced a separate matter that the San Diego Union Tribune (U-T) reported on March 16, 2015, "Schools office suspends law firm." According to the U-T, attorney Dan Shinoff is being sued by the San Ysidro School District for malpractice and they are filing a complaint with the California State Bar. San Ysidro School District has claimed Shinoff failed to bring a settlement offer to its board in a $12 million breach of contract case. Shinoff is reportedly disputing the claim.

According to the U-T, the JPA has suspended Shinoff from receiving new legal assignments until the matter is resolved.