Crime & Safety

New London Police Chief Sues Finizio, City

Margaret Ackley charges breach of contract related to City Council's rejection of a 2012 employment contract and legal settlement negotiated with the mayor

Chief Margaret Ackley has filed a lawsuit against Mayor Daryl Finizio and a city attorney, accusing them of breaking a 2012 employment and contract settlement that were negotiated by Finizio but rejected by the City Council.

The suit names Finizio, attorney Brian Estep, and the city of New London as defendants. It charges breach of express contract, failure and refusal to pay wages, breach of implied covenants of good faith and fair dealing, promissory estoppel, restitution in quantum meruit, malicious breach of contract, intentional misrepresentation, negligent misrepresentation, intentional interference with contracts, and civil conspiracy.

Finizio announced in January of 2012 that he had negotiated a three-year employment contract with Ackley as well as a $25,000 payment to avoid “the cost, burden, and uncertainties of litigations” related to charges Ackley made against former city councilor and mayoral candidate Michael Buscetto III.

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Ackley publicly accused Buscetto of unethical behavior in August of 2011, saying Buscetto had made “defamatory statements” about her and was trying to undermine her authority in the New London Police Department. Ackley said the stress of the situation led to her decision to retire.

Ackley has been with the NLPD since 1986 and became chief in 1989. She was eligible to retire after 25 years but agreed to withhold her retirement announcement until after the November 2011 election, which elected the first strong mayor in New London in 90 years and gave him or her authority to appoint a police chief and other department heads. 

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Ackley also agreed to remain in the department until January to “maintain the stability of the police department during this election year, so that a smooth transition of police chiefs could occur at a later date,” according to a memo from Thomas Londregan, the city’s law director at the time.

The retirement agreement negotiated for Ackley at that time included waiving 2,000 hours of compensatory time, a payout of some vacation and holiday time, and inclusion on the city’s health plan until she reached the age of 65.

Finizio appointed Ackley as police chief following his election. Ackley said the employment contract offered a continuation of her employment through the end of 2015, a salary of at least $110,725 with eligibility for further raises, “enhanced retirement benefits for life,” and wages equivalent to 1,196 accrued hours of compensatory time to be included in installments.

The contract’s salary represented a $3,225 raise, and Ackley says in the lawsuit that the contract allowed for further raises before her contract. The retirement benefits allowed Ackley to continue to receive single member medical benefits paid from the city upon her retirement, with the city also paying her supplemental Medicare insurance at no cost when she became eligible.

The $25,000 settlement aimed to avoid litigation related to Ackley’s claims against Buscetto. An investigator said Ackley would be unlikely to prevail at trial, but that her accusations had a “settlement value” of under $30,000 as a way of avoiding litigation costs.

Law Director Jeffrey Londregan said the City Council would have to approve both the contract and the settlement before they could go into effect since they would involve spending beyond the appropriated budget for the 2012 fiscal year. Councilors voted 4-3 against the settlement and 5-2 against the contract.

Londregan also said at the time that under a state labor law, police chiefs remain in the job until they resign, retire, or are fired.

Ackley said Finizio and Estep told her that they had the authority to negotiate the contract and settlement. The lawsuit also claims that the City Charter “specifically instructs that the mayor has the authority to sign all contracts on behalf of the municipality; to direct and control all departments; to be responsible for the administration of the affairs of the city; to make all appointments in the administrative service; and to appoint department heads like Ackley.”

The lawsuit says Ackley “changed important life plans” and delayed her contract as a result of the contract and settlement. It accuses the city of reneging on its promise to compensate her for the 1,196 hours of compensatory time as well as breaching a contract related to the $25,000 settlement.

The lawsuit requests a jury trial and monetary damages “for financial and emotional injury” exceeding $15,000. It also asks for legal fees, punitive damages, and interest.

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