Former Rye City Manager Paul Shew has filed a lawsuit against the City of Rye, claiming it never gave him months of severance pay and salary after he retired from his position last spring.

The lawsuit, which was filed on Feb. 12 in state Supreme Court, states that the city is in breach of an employment contract that requires it to pay six months severance, three months salary, unused vacation time, sick and personal time. The total for Shew's claim is about $150,000.

Shew, who became city manager in 2003, a position that currently pays close to $200,000, retired in May after the Rye City Council passed a preliminary resolution in March 2009 that suspended Shew and called for his ouster.

The resolution stated that Shew had failed to communicate with the City Council and keep them apprised of the status of his projects and assignments, that Shew undertook actions that were the exact opposite of what the City Council requested and that he failed to complete projects and assignments to the council's satisfaction.

The resolution was effectively a 30-day notice of Shew's termination, a measure that is required by the city's charter. Shew had the option of requesting a public hearing, but retired more than a month after the preliminary resolution.

During the latter part of his tenure, Shew became embroiled in controversy after Rye resident Robert Schubert accused him of asking Westchester Hospital to conduct a home visit to test Schubert's sanity. Schubert had been in an ongoing dispute with his neighbors about a pond on his property and had made frequent appearances before the City Council, questioning why the city didn't require his neighbor to get a wetlands permit before he installed a drainage system that Schubert contends depleted most of the water from his pond.

Shew claimed he only called County Health Services because it was his duty as a public official to "lend a helping hand" when he thought someone in the community was in need.

The city eventually replaced Shew with its former city manager, Frank Culross, who will retire this year.

Rye Mayor Doug French, who assumed office this January, said the city hasn't breached its contract, because Shew decided to retire.

"It's unfortunate that the city finds itself in this position and we have reviewed the matter with legal counsel," French said. "In the end it was Paul's decision to retire."

Shew is demanding nine months full salary and all unused vacation, sick and personal time.

Geoff Thompson, a spokesperson for Shew, said the city gave Shew limited options because its intention was to fire him.

According to Thompson, on March 16, the day before the council passed its preliminary resolution, Shew's attorney met with Rye City Attorney Ernie Stolzer to discuss Shew's options.

Stolzer gave Shew's attorney several choices. Shew could either agree to never work for Rye again, forgo any future legal action against the city and agree to fault in the matters in which he was accused or retire and keep his benefits or get fired and lose them. 

"Basically it was choose your poison," Thompson said. 

Shew, who currently lives in Massachusetts, has applied to several jobs but has had trouble finding work in public administration because of the circumstances surrounding his departure from Rye, Thompson said.

Thompson said Shew has tried repeatedly to get the city to pay him the money  he claims it owes, first filing a notice of claim in July 2009 telling the city they were contractually obligated to pay him. However, the city never responded, Thompson said, so Shew had to take legal action.

"The next step and the only step he had was to file a lawsuit against the city," he said.