University of Louisville pays $346K settlement

The University of Louisville is paying another large settlement in connection with the retirement of a high-ranking official — this time, $346,844 to its top lawyer.

University counsel Angela Koshewa is on a three-month leave of absence before she officially retires June 1. Documents obtained under the Kentucky Open Records Act show the university is paying Koshewa — who has questioned some expenditures and proposals backed by President James Ramsey and Dr. David Dunn, the executive vice president for Health Affairs — twice her final salary.

A five-page separation agreement, which was signed by Koshewa and Provost Shirley Willihnganz in February, called for her to be paid $50,000 on March 15 and the balance on June 15. It says the parties "desire to settle … any and all possible claims and differences among them."

The money is coming from private contributions to the university that can be used for any purpose, including to advance its academic mission, according to budget director Susan Howarth.

Ramsey declined to be interviewed. University spokesman Mark Hebert said the university wouldn't comment because it is a personnel matter and because the agreement bars both sides from disparaging each other.

Hebert did say that "nobody at U of L ever asked Ms. Koshewa to leave." And in an email, the university's vice president for human resources, Sam Connally, said the package wasn't offered to get Koshewa, 62, to sign a non-disparagement agreement. He said she had no contract and served "at will," meaning she could have been terminated for any reason or no reason if the university was unhappy with her performance.

Koshewa said in an interview that she also couldn't comment on her departure, in part because information she has about the university is protected by the attorney-client privilege.

In signing the deal, which also pays her $6,000 for training as a mediator, Koshewa gave up the right to sue the university.

Louisville employment lawyer Irwin Cutler Jr. said businesses usually offer such severance payments to avoid potential whistleblower suits or claims of age, race or gender discrimination.

But Cutler said there are fewer reasons why a public agency would make a payment it is not obligated to pay. "The university is accountable to the public for being good stewards of its funds," he said.

Two university officials who declined to be named because they aren't authorized to comment said Koshewa had raised questions with Ramsey and Dunn about expenditures, real estate deals, and university compliance issues.

Asked if Koshewa's departure was related to challenges she made to university officials, board trustee Jonathan Blue said Koshewa was "very cautious." But, he added, "That that is a not necessarily a bad thing for someone in her position."

Jessica Loving, who served on U of L's board for 13 years, until 2009, and was its chair for two years, said. "I have the highest regard for her Angela as general counsel, and she always gave me sound legal advice."

The newspaper reported on March 16 that U of L last year paid three officials close to Ramsey twice as much as other administrators taking early retirement, in part so they would keep quiet about sensitive information the university did not want them to disclose.

The school paid a full year's salary to outgoing vice presidents Michael Curtin ($252,350) and Larry Owsley ($248,255) and to assistant to the president, Vivian Hibbs ($66,391), in part to induce them not to "disparage, demean or impugn the university or its senior leadership," according to their separation agreements. Hebert said at the time that the agreements were sought because the administrators had access to confidential information about personnel matters and contract and budget negotiations.

Employment law experts said in that story that non-disparagement agreements are common in the private sector. But some experts, including Marcia McCormick, a St. Louis University law school professor, said it is inappropriate for a public university to pay to buy the silence of officials who are in the best position to inform the public about how a university is being run and spending public money.

She also said such deals give the public "reason to suspect that there is something worth hiding."

Koshewa was hired as a U of L lawyer in 1991 and has served since 2002 as university counsel, its chief lawyer.

Asked to provide her evaluations, the university produced only one document, an Aug. 7, 2013, letter from Provost Shirley Willihnganz giving her a 4 percent raise approved by the board. and saying, "I want to let you know how much I appreciate your efforts on behalf of your unit and the university." It also said, "I look forward to working with you in 2013-14."

The university counsel supervises a staff of lawyers — currently seven — and provides legal assistance and advice to the president and other university officers as well as the board of trustees. The counsel also serves as a member of the university's executive cabinet and reviews all university contracts to which the university is a party.

Koshewa has not been replaced. Connally said the university has begun a search for a new position — vice president for strategy and general counsel — that grew out of U of L's 21st Century Initiative. He said the position reflects a "new, changing strategic direction for U of L."

Reporter Andrew Wolfson can be reached at (502) 582-7189