Marsh Supermarkets Settles Suit With Former Exec

INDIANAPOLIS -- Marsh Supermarkets has reached a $1.5 million settlement with former executive C. Alan Marsh, according to a filing with the Securities and Exchange Commission, the Indianapolis Star reports.

Alan Marsh, a brother of the chain's c.e.o., Don Marsh, filed a lawsuit last fall alleging the company owed him about $2 million in life insurance and other benefits. The parties entered into a confidential settlement agreement April 13, according to the paper, citing documents filed last week with the SEC.

The settlement requires the chain to compensate Alan Marsh $985,784, or the current cash-surrender value of the life insurance policies, as well as $553,733 for income tax he incurred and as much as $50,000 as reimbursement for attorney and accountant fees. The newspaper also said Alan Marsh will continue receiving periodic payments under the company's supplemental retirement plans.

Alan Marsh, a former president of Marsh's Village Pantry division, ended his four-decade career with the company in 1998. In a complaint filed in U.S. District Court, Alan Marsh said his older brother, Don, forced him out, a claim the company has denied.

Marsh Supermarkets earlier filed a countersuit against Alan Marsh, alleging that he violated his fiduciary duty. The chain charged that Alan Marsh and Watson Wyatt & Co., a Washington-based benefits consulting firm, calculated his monthly supplemental retirement benefits according to brother Don Marsh's bonuses rather than the amount to which Alan Marsh was entitled. Watson Wyatt has agreed to pay the company $32,840, according to the report.
X
This ad will auto-close in 10 seconds