Judge Rules Citadel Can Sue Dolan
January 4, 2010 at 4:32 AM (PT)
CITADEL's claim in court that former ABC RADIO NETWORKS President MITCH DOLAN isn't entitled to severance pay because he tried to "poach" SEAN HANNITY for a venture with him while employed by CITADEL has survived a dismissal motion in U.S. District Court.
DOLAN won $850,000 plus interest, attorney's fees, and costs in arbitration after departing in FEBRUARY 2009 in the wake of CEO FARID SULEMAN firing LOS ANGELES cluster GM JOHN DAVISON and hiring BOB MOORE for the position at the same salary as MOORE, without DOLAN's consultation. COURTHOUSE NEWS reports that Judge SHIRA SCHEINDLIN ruled that CITADEL is not barred from suing over the matter even though the allegations of "poaching" arose as a defense in the arbitration case. Her ruling separates the allegation from the dispute over severance (which is governed by mandatory arbitration).
DOLAN appeared on the list of secured creditors in CITADEL's bankruptcy, based on the arbitration victory.