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buys out a tenured position at approximately three times the
individual’s annual salary. At the time, Mr. Reisman was earning
approximately $100,000 per year exclusive of benefits. Mr.
Goldfarb testified that $300,000 was paid for Mr. Reisman’s
resignation of his position and relinquishment of his tenure
rights, and $50,000 was paid to “close the deal” and settle all
litigation.
Mr. Makee negotiated the final settlement agreement on
behalf of the university along with attorney Mr. Goldfarb.4 Mr.
Makee also testified that the $300,000 offered to buy out Mr.
Reisman’s tenured position was based on three times his salary
and that the additional $50,000 was paid to settle the
litigation. Mr. Makee testified that the university was looking
at the additional payment from a litigation management point of
view. According to Mr. Makee, the university had been very
successful in the Federal case but there was a pending appeal in
the Sixth Circuit and “appeals are very expensive.”
Additionally, the university was aware that it would incur
additional legal services and costs in the pending State case.
According to Mr. Makee, CWRU was taking into consideration future
litigation costs when it authorized the increased settlement
agreement amount and that the university did not intend to
4Mr. Goldfarb was also an attorney with Kelley, McCann &
Livingstone when the settlement agreement was drafted.
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Last modified: May 25, 2011