Former Elburn Police Chief James Linane has inked a separation agreement with the village of Elburn that pays him $85,000.
Linane, now interim chief in Sleepy Hollow, sued Elburn for $148,000 in wages, severance and back pay after he was fired in summer 2009 after a new village president was elected.
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The separation agreement, agreed to in court last month but not signed by Linane until last week, now indicates that he "retired" and prohibits him from suing the village in the future.
"This agreement shall serve as Linane's acknowledgment that he has retired and resigned his employment as the Police Chief of the Village of Elburn effective July 31, 2009," part of the agreement states. "This agreement includes and extinguishes all claims Linane may have for equitable and legal relief, attorneys' fees and costs relating to such claims."
A message left for Linane at the Sleepy Hollow Police Department, where he began serving as interim chief last month, was not returned.
A message left with Linane's attorney, Justin Gaffney, also was not returned.
Linane sued Elburn in late 2010 for breach of contract, arguing that he was owed for severance pay, along with unused sick and holiday time that he claimed he had not received since summer 2009.
In the suit, Linane argued that he and three other department heads were asked to resign in April 2009 after Village President David Anderson was elected. Linane refused and was replaced, the suit stated.
Linane argued that was owed $62,369.40 in severance, or one month pay for every year of service since he started in May 2001. He also sought more than $85,000 for back pay, holidays and sick time.
In the separation agreement, the village does not admit any liability or wrongdoing and Linane agrees to drop his lawsuit. The village also agreed to provide Linane with a ceremonial wallet badge designating him as a retired Elburn Police Chief and a retirement card that says he retired on May 4, 2009, according to the agreement.
Village Attorney Charles Hervas deferred inquiries to Village Administrator Erin Willrett, who did not immediately return a message.