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family members ceased. In December 1994, D. Pavlik filed a
lawsuit in the Court of Common Pleas, Jefferson County, Ohio,
alleging that he was entitled to wages for services rendered from
August 1994 forward.
On May 24, 1996, the family members and petitioner executed
a settlement agreement and release (settlement agreement). On
May 24, 1996, the board adopted the settlement agreement without
holding a board meeting. The settlement agreement provided for
payment of back compensation to all of the children, including
Exley. One-half of the total amount was paid upon the execution
of the settlement agreement, and the remainder was paid in two
equal installments on March 31, 1997, and March 31, 1998. Under
the settlement agreement, petitioner paid Exley compensation for
the period August 1, 1994, through March 31, 1996. The
settlement agreement specially recited:
disputes have existed and continue to exist between the
directors concerning whether Virginia Exley could be
hired without Board approval and regarding her past and
present employment status with * * * [Barium and
Chemicals, Inc.] which disputes are not being addressed
by this Agreement.
The settlement agreement further provided that the family
members, including Exley, would continue to be paid compensation
from the date of the settlement agreement on a “going forward”
basis. In addition, the settlement agreement restricted the
reimbursement of all expenses attributed to A. Pavlik, subjecting
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