Fired Grady CEO settles suit for ‘less than a year’s pay’
Former Grady Memorial Hospital CEO Otis Story (right) has settled a lawsuit over his 2008 firing, lawyers in the case say.
Story will receive “less than a year’s pay,” as well as a bonus and moving expenses that were included in his employment contract but never paid, Grady general counsel Timothy Jefferson said. He declined to specify the total amount because all of the relevant documents had not been signed Monday evening.
“It won’t be an earth-shattering amount, I can tell you that,” Jefferson said.
Story was earning $600,000 a year under a five-year contract when he was dismissed in 2008. He claimed he was fired without cause and was owed three years’ pay, but received just two months’ severance.
The contract also called for a $60,000 bonus and $50,000 moving expense that Story said were never paid.
The case had taken a nasty turn in recent weeks. In court filings, Story accused state Rep. Pam Stephenson, chairman of the Fulton-DeKalb Hospital Authority, of altering his contract to delete the three-year severance clause with the intention of taking the CEO’s job herself. Stephenson accused Story of slandering her by telling people that she was sexually available and that she had him fired because he spurned her advances.
Stephenson did serve as Grady CEO, earning the same $600,000-a-year salary, for eight months last year. She signed a two-year contract herself and tried to get paid for the remainder of the deal when she was replaced, but eventually received a $325,000 settlement.
The lawsuit had been scheduled for a pre-trial hearing Tuesday and a July 10 trial calendar.
Story’s settlement will be paid by the Grady Memorial Hospital Corp., the non-profit body that was created last year to run the hospital, Jefferson said.