Former principals sue Reynolds School District

Former administrators seek combined $1.5 million

By Rob Cullivan

The Gresham Outlook, Nov 6, 2009, Updated Nov 6, 2009 (24 Reader comments)

Two women formerly employed as principals by the Reynolds School District are suing it, as well as Superintendent Robert Fisher, claiming he coerced them into resigning their positions because they refused to pay back health benefit reimbursements the district claimed they received in error.

Susan Dunn, former principal of Davis Elementary School, and Heidi Masunaga, former principal of Alder Elementary School, filed suit in U.S. District Court on Oct. 27, according to their attorney, James M. Brown.

According to the lawsuit, the women are each seeking more than $782,000 from the district, claiming Fisher’s actions violated their constitutional rights, cost them income and breached their contracts.

Brett Mersereau, an attorney for the Reynolds district, said “we disagree with the plaintiffs’ theories, and we see it as a defensible case,” but declined to comment further because the case is pending.

Case summaries

According to court documents, Fisher sent letters Nov. 28, 2008, to the plaintiffs determining certain health expense reimbursements had been paid to them in error. The women were given until Dec. 17, 2008, to tell Fisher how they planned to pay the money back.

Dunn was told to pay $3,508.40 to the district. Masunaga was told to pay $5,775.51.

In an interview, Brown said the women contend the district, since around 1996, had provided administrators and their insured family members a benefit not covered by health insurance.

The administrators would submit their receipts to district, which would then decide whether the submission would be reimbursed or not.

“We’re not talking about something that should be paid twice when it should have only been paid once,” Brown said. “Our contention is the employees are entitled to rely on the district’s regular course of business …and when they received their reimbursements it was part of their compensation.

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