Sources Say $325K Settlement Reached in Former Manager’s Suit Against Village

After eight months of legal wrangling, the Village of Key Biscayne is close to approving a settlement with former Village Manager John C. Gilbert over hundreds of thousands of dollars in disputed pension payments, several sources with knowledge of the discussions said.

The sources declined to be named out of concern of disrupting the settlement, which still faces formal Village Council approval. The reported settlement amount was $325,000, about half of what Gilbert stated he was owed.

In dispute were pension benefits from Gilbert’s service in the Key Biscayne Fire Rescue Department before being appointed village manager in 2012. Gilbert filed suit against the Village and the Village’s Pension Board last Sept. 11, saying he had accrued benefits of $739,182, without interest.

In court filings, the Village argued Gilbert waived all of his pension rights in the employment contract he signed when he became manager.

“He voluntarily relinquished any alleged right to in service pension distributions (or monies to be set aside) while Plaintiff was employed as the Village Manager,” wrote Matthew Mandel, an attorney representing the Village, last December.

Gilbert, who has retired to Lake Tahoe, Calif., has said he always hoped to resolve his dispute with the Village amicably.

It is unclear how much money has been spent in the litigation over Gilbert’s pension. When asked, Village Clerk Jennifer Medina, citing the Village attorney, said the Village’s insurance is covering legal expenses.

However, the Village has yet to clarify whether any deductibles would apply, what insurance counsel has billed the Village’s carrier, and whether the insurance carrier would be responsible for damages or attorney fees if Gilbert were to prevail.

The settlement is expected to be placed on the agenda for the next Council meeting, sources said.