Bad breakup preceded payout

LINCOLN — A $200,000 public payout in a Papillion sexual harassment case was hasty and probably unwarranted, Nebraska's attorney general said Friday.

Papillion's former mayor and his assistant had a longstanding romance, Attorney General Jon Bruning said during a press conference where he announced the results of his investigation into the payout.

When the relationship ended badly, Racheal Cascio claimed sexual harassment by her boss, then-Mayor Jamie Blinn, Bruning said.

“When you are talking $200,000, I expected there to be a horrible set of facts,” he said.

Otherwise, “somebody horribly overpaid,” Bruning said.

There was no heinous story behind the settlement, Bruning said.

“There was not one piece of information of any sexual assault of a criminal nature or any credible evidence of any sexual harassment,” Bruning said.

A quick settlement brought 35-year-old Cascio $200,000, plus 18 months of health insurance and vacation and sick leave. It also resulted in a confidentiality agreement intended to keep the settlement secret.

Blinn, 40, resigned without explanation July 7, the same day Cascio filed her claim. Neither has spoken publicly about the settlement or their relationship.

The taxpayer-funded insurance group, the Nebraska League Association of Risk Management, shouldn't have given in so quickly, Bruning said.

“I wish LARM had fought it. I think the odds were pretty good that she would have come out with nothing.”

Bruning acknowledged, though, that the results of taking the case to court would have been unpredictable.

Although Cascio claimed sexual harassment in the work place, Bruning called the details of her claim “pretty dull stuff.”

“This was a fairly unremarkable claim, and we saw everything,” Bruning said, referring to all the documents submitted by Cascio and her lawyer. “There was a lot of pillow talk in the work place, but it does not mean there was any sexual harassment.”

Mike Nolan, executive director of LARM, said he stands by his decision to settle Cascio's case without going to court. Nolan said the case probably would have been tried before a federal civil jury. A favorable jury verdict for Cascio's lawyer could have far exceeded the one-time $200,000 payout, plus her COBRA benefits, vacation and sick pay.

Had the case gone to court, Nolan said, Cascio and her lawyer likely would have produced or uncovered more corroborating evidence to bolster the claim against Papillion, driving up the potential for punitive damages, potentially into the millions.

“Her attorney was seeking a lot more. If given another chance, I still would do the settlement again. This is risk management,” Nolan said.

Bruning said Blinn made a poor decision when he started dating his assistant, which turned into an on-and-off relationship over several years.

“These were two single people,” Bruning said. “Is it a good idea as a supervisor to date your subordinate? I don't think it probably is. Most people don't like fishing off the company pier for a reason.”

Bruning said he didn't agree with keeping the settlement secret, but that Papillion officials did not violate Nebraska's public records laws in doing so. Under the deal, Cascio, Papillion and LARM agreed never to disclose the nature of her complaint.

The World-Herald reported the settlement Oct. 2, based on the results of a public records request filed with LARM.

Bruning said the confidential agreement “was not good public policy.”

“I am concerned about the public confidence in our government being denigrated,” Bruning said. “Make no mistake, this is all tax dollars.”

Papillion City Administrator Dan Hoins said Bruning essentially vindicated Papillion officials by saying their handling of the case was proper.

Hoins said he wanted to fight the claim in court.

“I believe we would have prevailed if we had gone to court. It just wasn't our call.”

State Auditor Mike Foley said he wants the Legislature to change existing state laws to ensure that future settlements involving public funds can't be done in secret.

Foley said the total settlement was about $300,000, once attorney and mediator fees are included.

World-Herald staff writer Martha Stoddard contributed to this report.

Contact the writer:

444-1056, john.ferak@owh.com