Resignation Is Part of Walsh’s Deal With County

Former Finance Director Eileen T. Walsh, who last year won a $300,000 breach-of-contract lawsuit against the county, will resign from county government under a deal announced Thursday.

Under the agreement, Walsh will receive $375,000 and remain with the county on unpaid leave until her 50th birthday in October, 1999, making her eligible for medical benefits in retirement. In return, she will drop all employment-related claims against the county and not make negative comments about county employees.

The deal comes two months after a jury found that the county had violated Walsh’s employment agreement by demoting her to the waste management department in the wake of the county’s 1994 bankruptcy.

A day after the verdict, county officials placed Walsh on paid administrative leave without any public explanation. Walsh will remain on paid leave until July 30.

Walsh, who worked for the county for 19 years, expressed relief Thursday that the case was finally over and said she was eager to get on with her life.

“I have no regrets,” Walsh said. “It was a great career for the most part. But I really wanted something now that offers more challenges than the county could provide. . . . For me, this is a whole new chapter.”

Walsh said she intends to work as a management consultant and has applied to teach sociology and public policy courses at local community colleges. The Laguna Beach resident is a member of that city’s school board.

After being removed as finance director in early 1995, Walsh was bounced around several positions at the county’s Integrated Waste Management Department. She was eventually moved to a trailer at the Prima Deshecha Landfill in San Juan Capistrano.

In her lawsuit, Walsh claimed that her demotion was an act of retribution after she was quoted in a Times article about how lobbyists for public finance firms made political contributions to county supervisors. But the jury said there wasn’t enough evidence to prove the retaliation charge.