Free Statement - District Court of Arizona - Arizona

Thayer V. Terravita Country Club, Inc., et al.
U.S. District Court Case No. CIV-03—2525 PHX DKD
Statement of Facts in Support of
Defendants Motion for Summary Judgment
dated September 30, 2005
Exhibit A-26
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MI`l.l’IES OF EXECUTIVE SESSION _
December l, 2002 ‘
Members attending: loan Burnett, Aaron Michaelson, Joan Musgrove, and Larry Dobrin.
Lee Englund, Catherine Gilmore and Larry Ray. ‘·
Joan Burnett called the meeting to order. Topic of meeting Margaret Thayer.
Aaron reported that he had talked to Margaret and that she would not resign. Joan
Burnett passed out an employment agreement that Margaret and Bob London had signed
defining her employment "at A member that is an attorney advised that with p
current documentation evidence we were OK to dismiss her. loan reported that she
spent a half hour with Donna and now has the detailed budget that we had been waiting ` ·
for Margaret to produce for several months. _
. . sl _
The Navamsh 7 letter to Margaret was discussed outlining unresolved issues. ‘
There was a November lim letter detailing the facts that CiCi’sjob was to change on
December l and as of the 23m Margaret had not talked to her.
On November ll Lee had emailed all board members about some service issues at pasta-
. . night. _ . . -
In a November 13 letter to Margaret, details were given to her about calls from members
that were not returned and that this was not acceptable.
Novembers 14m was the date that Michelle Nardi complained that had a similar "no
response” issue with Margaret. ·
On November 24m there was a meeting with Margaret and all board members in
executive session after which Margaret was but on a 30-day probationary period with a
two-week follow up.
n On November 26, Donna called to our attention that Margaret has left with a lot of oiice
‘ documents and returned without any. At that time Aaron and Joan met with Margaret
I and put her on administrative leave.
I The issue of a $1,700 food and bar bill was discussed. Most of this expense was created
during the installation of Jonas software. While this was not authorized, the consensus
was that we should write oft` the bill. E
A member attorney advised that Dave Zirhut would have grounds to sue us even though i
both Margaret and Dave have admitted having an affair due the fact that Margaret was
Dave’s superior- Of great concern was that Dave had received an unauthorized raise and
his total salary had gone hom $27,000 to $50,000 this year. The board decided to take no
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action against Dave except to limit his access to the building. The board also decided to
cancel all credit cards.
The question was debated as to whether we had to give a reason for Margaret’s ·
termination. Joan will consult our labor attorney on this issue.
The board then discussed whether it would be better to o&`er her a severance package if .
she would resign. While it did not make any difference to Terravita, given the
circumstances of the sexual misconduct, possible unauthorized travel and spending it
might look better on Margaret’s record to resign rather than be terminated. Joan Burnett
and Joan Musgrove were to meet with Margaret on Monday. loan Burnett and Joan
Musgrove should have the authority to make a settlement of up to three months pay in
g exchange for a letter of resignation. Without a resignation, Margaret is to be terminated
immediately. ‘ . · _
The response; of all board mexiihers should be that the boardtook appropriate action.
The Christmas bonus plan for employees was the next topic of discussion. The golf
board has votes to pay out about $10,000- Aaron, Lee and Larry Dobrin were to meet
and decide on the formula for country club employees. The board thought that our share -
should be under $20,000.
In the absence of a manager, the following board members will be responsible for the »
various areas of club activity. ·
Finance 5- Aaron & loan Burnett
Food & Beverage — Larry Dobrin
Letters to members — loan Burnett, loan Musgrove
Due to the change of management, signature cards will have to be changed.
_ A motion was made and seconded to authorize Joan and loan to oifer up to 60 days of
severance-in exchange for a letter of resignation. Motion Carried. .
A subsequent motion was made and seconded to void the previous motion and allow loan
'· and loan the latitude to make whatever decisions they thought were in the best interest of
Terravita relative to length of severance pay. Motion carried.
Meeting adjourned. _
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