Duncan City Council, with the help of City Attorney David Hammond, announced Tuesday after an executive session during the regularly scheduled council meeting the city agreed to settle a lawsuit between itself and a former employee.

The executive session lasted about half an hour before city council members returned to chambers, where they announced they reached a decision to settle the case against Clyde Shaw for a payment of $7,500.

Vice Mayor Patty Wininger made the motion authorizing the city to settle the case against Shaw, who served as a former city manager for Duncan. The original lawsuit stemmed from a 2009-2010 employment contract and resulted in the investigation of Shaw’s severance pay, sick pay and retirement.

Hammond first touched on Shaw’s time with City of Duncan.

“Clyde Shaw worked for the City of Duncan from February 1979 to May 31, 2010. He served in many capacities, including city clerk, finance director and city manager,” Hammond said. “After his retirement in 2010, Mr. Shaw continued to voluntarily serve as the City Attorney’s OMPA representative until 2012.”

It was a few years down the road when City of Duncan felt the need to investigate Shaw for fraud and unjust enrichment. The suit, on behalf of City of Duncan, sought $123,159.18 in damages plus attorneys fees and cost.

“In 2017, the city council, on behalf of City of Duncan, filed a lawsuit against Mr. Shaw claiming fraud and unjust enrichment based on the terms of Mr. Shaw’s 2009-2010 contract, seeking damage of $123,159.18 plus attorneys fees and cost,” Hammond said.

Shaw filed a countersuit at that time.

“Mr. Shaw, in an effort to defend himself and clear his reputation and good name, filed a counterclaim against the City of Duncan to impart enforce 2009-2010 contract,” Hammond said. “It is the parties desire to expeditiously settle this matter and by mutual agreement the settlement has been reached.”

Settling the case also meant neither party admitted wrongdoing, Hammond said.

“Both parties agreed that no findings of wrongdoing have been made nor is either party admitting to wrongdoing,” Hammond said. “The settlement is for economic convenience purposes only. Mr. Shaw’s payment of $7,500 will be made in good faith.”

The payment of $7,500 will be made in two payments. The first will take place in 30 days, and the second will take place 30 days after the first payment.

According to Hammond, this was a difficult case for both parties.

“Mr. Shaw and the City wish to put this matter behind them,” Hammond said. “This will result in both parties dismissing their claims with each other with prejudice.”

The measure to settle the claim passed Duncan City Council unanimously.