Letter of resignation and settlement agreement contingent on appointing authority’s approval may not be rescinded while approval is pending

Letter of resignation and settlement agreement contingent on appointing authority’s approval may not be rescinded while approval is pendingMatter of Civil Serv. Empls. Assn. Inc., A.F.S.C.M.E., Local 1000, A.F.L.-C.I.O. v Baldwin Union Free School Dist., 2010 NY Slip Op 20091, decided on February 3, 2010, Supreme Court, Nassau County, Justice Daniel Palmieri

Francesco Pignataro filed an Article 78 petition seeking a court order allowing him to revoke his letter of resignation and settlement agreement he submitted to his former employer, the Baldwin Union Free School District.

While two arbitrations involving grievances concerning his ability to perform the duties of his position were pending, Pignataro and his CSEA representative signed an agreement with the District resolving both grievance – [1] his termination because of his absence from work and [2] his claim for accrued sick leave. The agreement was subject to the approval of the Board of Education.

The agreement, in pertinent part, stated that: (1) it was in settlement of the grievance for available leave accruals; (2) Pignataro would be paid $50,000 for accumulated leave days from October 1, 2007; and (3) Pignataro "shall" submit a letter of resignation for purpose of retirement, to be effective as of the close of business on August 12, 2009.

Significantly, the agreement also stated that it was subject to Board approval, and if the Board "does not approve this agreement, such resignation shall be deemed withdrawn, and Mr. Pignataro shall remain an employee of the District.*

In a separate document, dated July 16, 2009, Pignataro signed a letter of resignation stating that "I hereby submit my letter of resignation from the position of custodian for the Baldwin Schools, effective at the close of business on August 12, 2009. This resignation is contingent upon full execution and Board approval of a stipulation of settlement with the District, dated August 12, 2009."

A few days later Pignataro sent a letter to the district stating that he rescinded his resignation and the "proposed settlement". Specifically, Pignataro said that the resignation “is no longer effective, that he did not agree to waive his rights and did not agree to the terms of the retirement proposal.” Notwithstanding this, on August 12, 2009 the Board, by its President, signed the settlement agreement, and thereby refusing to permit Pignataro to “withdraw his resignation”** and repudiate the settlement agreement.

Justice Palmieri said that the question before him “is a simple one: was the agreement [Pignataro] signed subject to unilateral recession by Pignataro?”

The court ruled that the settlement agreement was binding on Pignataro, and under its terms he was not able to repudiate the settlement, rescind his resignation nor revive his employment with the District.

In addition, the decision states that “by signing the agreement settling his leave accrual grievance, and resigning as a part thereof, Pignataro waived any due process rights he may have had under the Civil Service Law or the [collective bargaining agreement] regarding his separation from District employment.” Accordingly, under the terms of the settlement agreement, said Justice Palmieri, Pignataro and CSEA were bound to all the other terms of that agreement as well, “including the release of the Board, the district and its employees from the current and any other claims flowing from Pignataro’s alleged right to salary and benefits.”

* The agreement provided that in the event the Board rejected the agreement, Pignataro's leave entitlements would be restored to him, retroactive to July 17th 2009"; the District, Board, and its employees would be released from "all actions, suits, charges, claims, grievances, etc.,” and all pending arbitrations and grievances filed on behalf of Mr. Pignataro shall be withdrawn with prejudice."

** Typically once the employee has delivered his or her resignation to the appointing authority or its designee, he or she may not withdraw or rescind the resignation without the approval of the appointing authority. For example, 4 NYCRR 5.3(c), which applies to employees of the State as an employer provides that “A resignation may not be withdrawn, cancelled or amended after it is delivered to the appointing authority, without the consent of the appointing authority.” Many local civil service commissions and personnel officers have adopted a similar rule.