New Jersey Assembly Democrats:McKeon, Quijano, Benson, Houghtaling & Downey Bill Barring Public Entities from Entering into Confidential Lawsuit Settlements Advances

FOR RELEASE                                                                   CONTACT
3/20/2017                                                                              Press office
                                                                                         (609) 847-3500

McKeon, Quijano, Benson, Houghtaling & Downey Bill Barring Public Entities from Entering into Confidential Lawsuit Settlements Advances

Bill Stems from Christie Administration's Secret $1.5M Corruption Allegation Settlement
An Assembly panel on Monday unanimously approved legislation sponsored by Assembly Democrats John McKeon, Annette Quijano, Daniel Benson, Eric Houghtaling and Joann Downey that would bar public entities from entering into confidential settlements of whistleblower lawsuits with public employees and mandate that such settlements are part of open public records.

McKeon first introduced the bill in response to the settlement reached with former Hunterdon County Assistant Prosecutor Bennett Barlyn, who testified extensively on the bill during today's hearing. Archived audio from today's hearing will be posted here after the hearing concludes, with Barlyn's testimony beginning around the 20 minute mark.

Barlyn filed a lawsuit against the state in 2012 alleging he had been fired in 2010 after complaining to a superior that an indictment brought by the Hunterdon County Prosecutor's Office had been dismissed by then Attorney General Paula Dow for political reasons.

In October 2016, it was reported that the lawsuit was settled for $1.3 million in August and that the state spent an additional $3 million on legal fees. Under terms of the settlement, the state denied any wrongdoing or liability in the matter.

"Based on the testimony we heard from Mr. Barlyn today, previous allegations against this administration would appear to be child's play," said McKeon (D-Essex/Morris). "The public's right to know how their money is spent demands an open discussion, as does the public's right to learn all the facts about any allegations, which in this case were very concerning. It's disturbing that someone who uses the whistleblower law to truthfully speak out against wrongdoing can then be stifled when the matter is resolved. The public's interest and their right to know about potential corruption must take priority over everything else."

Specifically, the bill (A-4243) would bar public entities and public employees from entering into any agreement to settle a claim or action when the public employee asserts the protections of the "Conscientious Employee Protection Act," informally known as the "Whistleblower Statute," if the agreement:
1) provides that the terms or conditions of the settlement are confidential; or
2) if the purpose or effect of the agreement is to conceal information relating to any claim or action against a public entity concerning the public interest. The bill would provide for an exception for matters involving national security.

"These allegations represent government at its worst," said Quijano (D-Union). "Taxpayers deserve much more than that. They deserve to know their tax dollars are not being squandered to cover up potential government misconduct."

"Confidential settlements of this nature effectively eliminate government accountability," said Benson (D-Mercer/Middlesex). "Furthermore, they lead to the abuse of taxpayer dollars. This is unacceptable and contrary to everything expected of good government."

In addition, the bill would require the Attorney General to make publicly available on their website a list of all settlements entered into by the state which would include, for each settlement agreement listed:
  • The date on which the parties entered into the settlement agreement;
  • The names of the parties that settled claims under the settlement agreement;
  • A description of the claims each party settled under the settlement agreement;
  • The amount each party settling a claim under the settlement agreement is obligated to pay under the settlement agreement; and
  • The amount of outside counsel fees, if any, paid by the State in connection with the claim.
"It's unacceptable that the state would readily waste over a million dollars in taxpayer money, then seal the terms of the settlement to avoid answering to allegations of corruption allegations," said Houghtaling (D-Monmouth). "This bill will put an end to that."

"It's unfortunate that taxpayers have to foot the bill for this alleged misconduct, but they have the right to know that this reckless abuse of their money will not be tolerated again,"," said Downey (D-Monmouth). "This bill effectively says: no more."

Finally, the bill would provide that such settlement agreements constitute public records under the open public records laws.

The measure was approved by the Assembly Judiciary Committee and now awaits consideration by the full Assembly. The bill would take effect 90 days following enactment.

On the Net:
The Assembly Democratic Office Web site
NJ Assembly Dems on YouTube
NJ Assembly Dems on Vimeo
NJ Assembly Dems on Facebook
NJ Assembly Dems on Twitter
NJ Assembly Dems e-mail alerts