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with finality, and avoid further publicity about the case. Given the hazards
of litigation, IBP's attorney thought the settlement was favorable for IBP.
The settlement was reached after some give and take by the parties over
the amount to be paid to petitioner. The $1.5 million figure was not based on
any formula or calculation. During the course of the settlement conference,
Mr. Rawlings stated that petitioner would receive punitive damages if the case
were retried and that the potential for punitive damages had to be taken into
consideration. Mr. Smith, as a representative of IBP, responded that IBP
would not agree to pay punitive damages, and Mr. Rawlings replied that that is
what he would state if he were in Mr. Smith's position.
It took the parties approximately 2 weeks to agree on the wording of the
settlement agreement and to execute the agreement. During this period, there
were no further discussions between the parties with respect to the $1.5
million to be paid to petitioner. IBP's principal concern in the drafting of
the settlement agreement was that the document clearly release IBP from any
and all liability to petitioner, and clearly provide that petitioner was to
return the Bagley documents to IBP, and that the settlement remain
confidential.
On September 10, 1987, the parties executed a release and settlement
agreement which provided:
This Settlement Agreement and Release is entered into this
10th day of September, 1987, between IBP, INC. (IBP) and HUGHES A.
and MARILYN BAGLEY (Bagley).
1. IBP and Bagley each hereby release and forever discharge
the other from all sums of money, accounts, actions, suits,
proceedings, claims and demands whatsoever which either of them at
any time had or has up to the date hereof against the other for or
by reason of or in respect of any act, omission, statement,
writing, or cause whatsoever.
2. Bagley hereby acknowledges payment and receipt in the
sum of One Million Five Hundred Thousand Dollars ($1,500,000.00)
as damages for personal injuries including alleged damages for
invasion of privacy, injury to personal reputation including
defamation, emotional distress and pain and suffering.
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