A $100 million lawsuit against former Atlanta Housing Authority chief executive Renee Glover has ended up costing the agency $1.3 million.
The AHA board approved the settlement Thursday evening, with a majority of the money — $794,030 — going to Glover’s attorneys. The balance of the funds, just over $523,000, goes to Glover to pay any potential tax liability she may incur for paying her attorney’s fees.
Glover must repay AHA the money if there is no tax liability, according to the settlement.
Glover filed suit last year to recoup her legal fees in fighting a $100 million lawsuit filed at the urging of former Mayor Kasim Reed. That suit alleged developer Egbert Perry and Glover entered into a backroom real estate deal that gave away a large portion of housing authority land to Perry at a steep discount.
Perry and Glover strongly denied the accusations and allege Reed used city and AHA resources in an attempt to ruin their reputations.
The city withdrew its lawsuit in April 2018.
Reed did not immediately respond to a text message sent to him Thursday evening.
Glover’s suit demanded arbitration and claimed the AHA was guilty of breach of contract, defamation, slander and of breach of the non-disparagement provision contained in Glover’s severance agreement from 2013.
Glover’s attorney argued AHA was responsible for her legal fees because of an indemnification clause in that severance agreement. The indemnification clause protects Glover from legal fees incurred in defense of any action she took in “good faith” as chief executive.
The settlement says AHA board members and staff — present and future — “shall refrain from making any statements that are defamatory or disparaging of Glover.” It also says the AHA and Glover will jointly release a public statement to acknowledge Glover’s contributions.
“Atlanta Housing acknowledges Ms. Glover’s past contributions serving as CEO of AHA,” the statement says.
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