Smith for Defendants, Cross-complainants and Appellants. Wagoner for Plaintiff, Cross-defendant and Respondent. Cyril, Elliot L. Bien and Richard L. Antognini for Intervener and Respondent. This is an appeal from a judgment entered in favor of plaintiff and cross-defendant Fireman's Fund Insurance Company hereinafter Fireman's Fund , intervener California Union Insurance Company hereinafter Cal. Said judgment was based upon each of the above-named parties' successful motion for summary judgment against defendant and cross-complainant City of Turlock hereinafter City and Lou Ann Watson.
The action arises out of the December termination of Charles Polston's employment as a police officer with City. Polston appealed the termination to the Turlock City Council and a hearing was held. Watson was the city attorney for City at all relevant times. At the commencement of the second session of the hearing, Polston's counsel approached Watson to explore the possibility of settling the matter.
Watson then undertook extensive negotiations on City's behalf, and eventually the claim was settled. One of the settlement terms provided that City would reinstate Polston retroactively, but that Polston would secretly submit to City a signed letter of resignation to become effective on June 1, A dispute arose between Polston and City as to the particular terms of this agreement.
Polston contended that the agreement provided for his secret resignation to remain confidential forever. City and Watson contended that the resignation was to remain confidential only until June 1, , the resignation's effective date. Sometime after June 1, , Watson disclosed the previously arranged secret resignation to reporters from the Modesto Bee, the Fresno Bee and the Turlock Journal.
Polston filed a claim with the Turlock City Council for breach of the secrecy agreement, and the city council denied the claim. Polston then filed suit in the Stanislaus County Superior Court seeking damages for breach of contract and for fraud. In that action, a jury awarded Polston damages against City on the breach-of-contract cause of action and against both City and Watson on the fraud cause of action.
