Andover will pay $225,000 to former Youth Services Director William Fahey, ending a wrongful termination lawsuit that stretched more than five years and was weeks away from a jury trial.
The Select Board announced the settlement in mid-July following an executive session earlier that week, according to Andover News. The deal resolves one of the most divisive chapters in recent town government without an admission of wrongdoing by either side.
Town Manager Andrew Flanagan said the payment represents 2.25 percent of the $10 million Fahey originally sought. The town said its insurance will cover the $225,000, meaning no direct cost to taxpayers.
Five years of litigation
Fahey ran Andover Youth Services for 27 years before Flanagan terminated him on May 10, 2021. The firing followed an independent investigation into allegations by a woman identified in court documents as "MJ," who accused Fahey of inappropriate conduct after meeting him through the youth program as a teenager.
The Essex County District Attorney's Office determined the alleged conduct did not constitute a criminal offense, even if the allegations were true. An outside investigator retained by the town found concerns about the accuser's credibility, including inconsistent statements, but also identified what court records describe as "significant gaps" in Fahey's credibility.
Fahey and attorney Daniel Murphy filed suit in June 2021, alleging breach of contract, defamation, intentional infliction of emotional distress, and intentional interference with advantageous contractual relations. A central claim in the case: Flanagan falsely told Select Board members the Massachusetts State Police and DA's office had deemed the allegations "credible" but could not pursue charges due to statute-of-limitations restrictions. Flanagan and the town denied those allegations.
Road to settlement
The case survived a major challenge in 2024 when Essex Superior Court Judge Elizabeth Dunigan denied the town's motion for summary judgment, ruling that disputed facts required a trial. A jury trial was scheduled to begin July 27 in Essex Superior Court.
The Select Board held at least three closed-door executive sessions in nine days leading up to July 8 to discuss legal strategy, according to the Eagle-Tribune. Settlement discussions were initiated by Fahey's attorney, according to the board's statement.
In its written statement, the Select Board said it weighed the expense and time of a multi-week trial before deciding to settle. The board said the agreement closes a dispute pending for more than five years and allows the town to refocus on serving the community rather than continuing protracted litigation.
Fahey's 2021 termination prompted the resignation of the entire Andover Youth Services staff and drew hundreds of residents to public meetings. His attorney, Murphy, has not publicly commented on the settlement. The case file remains at Essex Superior Court.
