Arbitration panel dismisses Bibb BOE’s counterclaim against Dallemand

The Bibb County school board won’t be allowed to pursue a multimillion-dollar claim against a former superintendent during an upcoming arbitration hearing.

The American Arbitration Association also decided Tuesday that those proceedings will be closed to the public.

The organization’s ruling doesn’t mean the board’s claims are dead. The association said simply that those claims are beyond its jurisdiction.

Former Bibb County school Superintendent Romain Dallemand is seeking up to $10 million in compensation from Bibb County, contending that board members violated the terms of his severance agreement after they bought out his contract in 2013.

Among other provisions, the agreement said board members agreed to release Dallemand of “all claims, known or unknown,” and that they would not “make any statement of any kind ... that may reasonably be considered to disparage or impugn” his work or reputation.

Complaints about Dallemand sent to the state’s educator regulatory agency violated the terms of the agreement, Dallemand maintains.

The board filed a counterclaim for $7.5 million with the arbitration organization, arguing that the severance agreement was obtained by fraud and therefore is void and unenforceable. The counterclaim was the district’s attempt to go after Dallemand to recoup up to $7.5 million spent on what a school system audit report called “unauthorized purchases.”

The board argues that clauses in the agreement would have required it to do “unethical and illegal things,” such as not reporting suspected financial irregularities, which render the agreement void.

In its order, the arbitration panel wrote, “None of (the school board’s) three counterclaims is for breach of contract.” The panel also said that the board’s “void and unenforceable” argument is a valid defense to Dallemand’s claim, but that it cannot be used as a counterclaim in arbitration.

“The scope of this arbitration is consequently limited to Dr. Dallemand’s breach of contract claims. ... The panel has no jurisdiction over (the school board’s) counterclaims,” the order stated.

The board could pursue its counterclaims by filing suit in court.

The school board’s attorney, Jerry Lumley, declined to comment Tuesday because of a confidentiality order imposed by the arbitration panel.

Lumley and The Telegraph had filed briefs in the case, asking that the hearings be open to the public. Among other arguments, The Telegraph said millions of public dollars are at stake, and the arbitration sessions, therefore, ought to be open to the public.

Dallemand opposed public access to the hearings.

The panel did rule, however, that all underlying documents -- including pleadings, motions, briefs, transcripts of depositions and hearings, prehearing orders, as well as the final award -- would be accessible through the Georgia Open Records Act.

David Hudson, an attorney for the Georgia Press Association, said, “What the BOE has done is to contract to have its disputes resolved in private. This is poor public policy.”

The Telegraph contended that the arbitration proceedings are “tantamount to a court proceeding” and should be open, but the panel rejected that argument.

Telegraph attorney Chris Freeman said, “Should this view be adopted in the future, the fact that governmental agencies routinely enter into contracts with an arbitration provision will effectively deny the public the right to ensure that these matters of great public interest are handled in an even-handed and appropriate manner.”

To contact writer David Schick, call 744-4382.

This story was originally published July 7, 2015 at 4:07 PM with the headline "Arbitration panel dismisses Bibb BOE’s counterclaim against Dallemand."