Newberg School District Sued Again – Former Deputy Superintendent Scott Linenberger Sues Over Layoff and Unpaid Wages

By Rebecca Wallis
NEWBERG, OR – October 11, 2024

In a recent legal development, Scott Linenberger, the former Deputy Superintendent of the Newberg-Dundee School District, has filed a lawsuit against the district, alleging breach of contract and a failure to pay owed wages. The lawsuit was officially filed on October 11, 2024, in Yamhill County Circuit Court, and Linenberger is seeking damages totaling $535,310.40. This lawsuit follows his layoff in July, which was part of a broader reduction in force (RIF) initiated by the district due to budget constraints.

Background of the Layoff

Linenberger’s employment with the district began in August 2022, and his most recent contract was set to cover the period from July 1, 2023, through July 31, 2024. However, on July 9, 2024, he received a letter from the district officially notifying him that his position had been eliminated as part of the RIF, effective July 31, 2024. The letter, signed by Interim Superintendent Dr. Paula Radich, cited budget cuts as the primary reason for the elimination of his position. Linenberger was offered COBRA insurance for 18 months, but all further employment and benefits were terminated at the end of July.

The layoff occurred following a June 11, 2024, board meeting where the Newberg-Dundee School District Board of Directors authorized staff layoffs due to the district’s financial challenges. Despite the RIF affecting several staff members, Linenberger argues in his lawsuit that the district failed to honor the terms of his contract, specifically regarding severance payments.

Details of the Lawsuit

The lawsuit, filed by Portland-based attorney Benjamin Rosenthal, claims that the district breached Linenberger’s employment contract in several key ways. The most significant allegation involves the district’s failure to pay the severance compensation specified in his contract. According to the complaint, Linenberger’s contract entitled him to 24 months of full salary and benefits in the event of termination without cause.

Linenberger’s contract outlined a no-cause termination provision, guaranteeing two years of salary continuation along with additional benefits such as health insurance coverage. His salary for the 2023-2024 fiscal year was set at $162,000 per year. The lawsuit claims that the district owes him $347,044.50 in salary, $57,929.74 in additional benefits, and $130,336.16 for five years of insurance coverage—bringing the total damages sought to $535,310.40.

Linenberger further argues that the district failed to deal with him in good faith, a requirement under Oregon employment law. The complaint alleges that the district did not provide the severance package despite his fulfilling all the conditions of his employment contract.

Alternative Work Offer

In a bid to resolve the situation, the district offered Linenberger an alternative position as an Administrator on Special Assignment for the 2024-2025 school year. This role involved handling special projects and reporting directly to the superintendent, but the position came with significant limitations. Linenberger was to be stationed in an empty classroom and prohibited from contacting other district staff or board members without prior approval. However, Linenberger did not accept the position, and his lawsuit does not reference this offer as a viable alternative to his Deputy Superintendent role.

Implications of the Lawsuit

Linenberger’s legal action casts a spotlight on how Newberg-Dundee School District handles its administrative contracts, especially in times of financial hardship. The case raises questions about the district’s obligations under no-cause termination clauses and its ability to meet contractual obligations during budget cuts.

This lawsuit is likely to garner attention as the district continues to navigate financial challenges. Linenberger’s contract and subsequent layoff were part of a broader set of cuts that impacted several district employees, but the legal ramifications of his case could set a precedent for future employment disputes within the district.

As of now, Newberg-Dundee School District officials have not commented on the lawsuit. A jury trial has been requested, and the outcome of the case could have far-reaching consequences for both Linenberger and the district.

Photo Credit – Yamhill County News file