'Sham settlement': Fired Canton McKinley football coaches sue district, insurance co.

• The suit claims the parties unlawfully orchestrated and authorized a fraudulent settlement payment to a football player.
• Fired McKinley football coaches are suing the district, its attorney and the district's insurance company over what they call a "collusive sham settlement."
• Liberty settled the federal law suit for $125,000, nearly double the $71,500 the plaintiffs demanded, to undermine the coaches' claims.

CANTON - Fired Canton McKinley football coaches are suing the school district, its attorney and the district's insurance company over what they call a "collusive sham settlement."

Former football coaches Marcus Wattley, Frank McLeod, Zack Sweat, Romero Harris, Cade Brodie, and Tyler Thatcher filed a lawsuit this week in Summit County Common Pleas Court against Canton City Schools Superintendent Jeffrey Talbert, attorney Kathryn Perrico and Liberty Mutual Insurance Co.

The suit claims the parties unlawfully orchestrated and authorized a fraudulent settlement payment of $125,000 to a football player, who alleged the coaches forced him to eat a pepperoni pizza even though his religious beliefs prohibited the consumption of pork.

The Canton City School District settled local and federal lawsuits filed over the May 2021 incident.

The settlement agreement called for the money to be paid to the former player and his parents, Kenneth Walker and Lori Cruz. It provides for the payment to be made by the school district and its insurance carrier, Liberty Mutual, and sent to the family's attorney Edward L. Gilbert of Akron.

The document, finalized last June, states the school district denies all allegations of wrongdoing made by the family in the litigation.

The coaches allege the settlement was a result of unlawful collusion between the district and the player's attorney and was not based on any reasonable assessment of Gilbert's claims but rather was intended to defraud the public, further defame the coaches and vindicate the district's position in the public eye.

Gilbert had claimed the coaches knew about the player's religious beliefs and wanted to punish him by forcing him to eat portions of the pepperoni pizza.

"We are seeking monetary relief for reputational harm caused by the settlement," the coaches' attorney Peter Pattakos said. "They agreed to pay the settlement not for legitimate reasons but to vindicate their interests and further defame the coaches. They were so committed to firing these coaches they decided they were going to pay the settlement because they thought they would get away with it. They were in a position of power and could further this narrative."

The suit claims Perrico recommended Liberty settle the federal lawsuit for $125,000, nearly double the $71,500 the plaintiffs demanded, to undermine the coaches' claims and avoid a potentially higher judgment in the defamation lawsuit.

The coaches went out of their way to not give up on the player when other coaches would have kicked the kid off their team, Pattakos said.

The suit alleges Liberty Mutual, which insured the coaches and district officials, failed to recognize the obvious conflicts of interest.

Perrico was retained by Liberty Mutual to defend Talbert against a defamation lawsuit filed by the coaches. While the case was pending, a civil rights lawsuit was filed in federal court against the coaches, Talbert and the district.

The filing indicated Liberty Mutual now had to provide defense for the coaches under the same policy.

Perrico defended Talbert in both cases.

"The potential for conflicts of interest and collusion was foreseeable and almost certainly inevitable," the suit claimed. "While the settlement was good for Talbert and the district, it hurts the co-insured."

Talbert declined to comment on the suit, saying he had just received it and had to review it with the district's attorneys. Perrico did not respond to an email seeking comment.

A defamation lawsuit that six of the former coaches filed in Stark County Common Pleas Court in May 2023 remains on the court docket.

In that case, Wattley, McLeod, Sweat, Harris, Brodie and Thatcher claim their reputations have been ruined due to false and misleading statements.

The lawsuit is similar to the defamation case the coaches filed in July 2021 and withdrew in January 2023, but it includes additional claims against Talbert, Rinaldi, Humphrey and Grimsley.

"They didn't give the coaches a chance to answer it (lawsuit)," Pattakos said. "They were in such a hurry to further their campaign and defraud the public and smear these coaches. It's beyond outrageous. I've never seen anything like it."

Reach Amy at 330-775-1135 or amy.knapp@indeonline.com.