News of a settlement between Christ Church College and its Dean (head) was reported this week. Interestingly the details of future costs reveals why the college decided to resolve this long running dispute rather than matters escalating.
The same considerations apply to most businesses or organisations facing a workplace or employment dispute.
The Dean had a claim against the College. There had also been a complaint about the Dean’s alleged conduct towards a student but there had been no disciplinary hearing. The student involved received an undisclosed payment, resolving her claim also.
Background
The dispute started when the Dean requested a higher salary, as he said he was paid less than other heads of college.
It was reported that the Dean would receive £1.175mn, net of tax, in the settlement to drop his emploment claim against the university.
At the individual’s request, Christ Church said it will within 12 months commission a comprehensive review of its policies and procedures in relation to sexual harassment to be led by an independent expert.
The college said the review will ensure that any future cases are dealt with ‘fairly and expediently’.
In her statement, X said: “I know what I experienced on that day and I want to ensure that no other student or member of staff has to go through the ordeal that I have.
“I am pleased that the Dean has agreed to step down from his role at Christ Church and, in return, I have agreed to settle my outstanding claims against him.
“I am reassured that Christ Church has begun the important work of ensuring that its practices and policies provide the best possible support and protection for all members of its community.
“I will be working with Christ Church to ensure that whatever changes they adopt take into account my experiences.
“I sincerely hope that in some way this will help to ensure that other students and staff avoid the distress that I have experienced.
“I would like to thank Christ Church for bringing about a resolution to my complaint against the Dean.
“Of course, I wish that a resolution could have been achieved more quickly and without the pain and stress I have endured, so that the sense of injustice I have long felt could have been, if not entirely eradicated, made more bearable.”
It is reported that the dispute would have continued for 3 years and cost £780,000 in legal fees and £115200 for a tribunal hearing. A medical board would have cost £270,000. An employment tribunal would have cost £815,000. Compensation for the Dean might have cost £500,000. There would have been reputational damage also. It was estimated that future costs could amount to £6.8m and so settling for £1.2m appears reasonable from a commercial perspective. There will be some detractors who would say that the College should have continued the dispute rather than settle, but the College dons will owe a duty to manage the College’s funds responsibly.
The Dean will also have faced costs in order to go to a tribunal and so it will have made sense for him to accept a settlement rather than fighting on with his claim.
This story highlights the issues that many organisations face when there is a workplace dispute or indeed any contractual dispute. Businesses have to weigh up the competing interests and decide whether it is worthwhile continuing with all the costs and reputational damage involved, or reaching a settlement which reduces the risk. In a clear cut case there is less risk of failure but there can still be an interest in settlement. This dispute has resulted in a lot of unwelcome negative publicity for the College and perhaps this could have been avoided if the parties had mediated earlier and the dispute could have been resolved through mediation.
At the same time a dispute has apparently arisen regarding Dame Cressida Dick’s severance package. Under the terms of her two-year extended contract, signed in September, Dame Cressida, can expect to receive her £246,109 annual salary with £3,074 benefits for the remaining 25 months she had left to serve until April 2024. If a dispute ensues then we recommend mediation as a method of dispute resolution.
To instruct a mediator please get in touch. We can help save costs, anxiety and stress in any dispute.