News Notes: Hastily Drawn Settlement Agreement Amounts To Expensive Mistake

Orange-based Bergen Brunswig Corp. dashed off a settlement offer to its former president, Donald Roden, to resolve a wrongful-discharge lawsuit. Theoffer stated only that Roden would receive a $5 million lump sum plus attorney’s fees, and his retirement and other benefits would be continued. After Roden signed the agreement, Bergen Brunswig claimed it had intended for Roden’s retirement benefits to be included in the lump sum payout. But a California appeals court said the agreement clearly provided that retirement benefits were in addition to the $5 million lump sum. Therefore, the court refused to consider Bergen Brunswig’s evidence of pre- and post settlement communications showing the company and Roden intended the $5 million to cover retirement benefits.