STONE HARBOR – The borough has settled a sexual harassment lawsuit filed against it and against former Administrator Manny Parada by a borough employee.

On Sept. 2 the Borough Council voted to settle the Aug. 2024 suit brought by Megan Brown alleging sexual harassment of Brown by Parada and a lack of response by the borough.

The borough agreed to pay “up to the amount of $150,000,” with Brown agreeing to dismiss the litigation against the parties. She remains an employee in the borough’s construction office.

Brown’s litigation was one of three active suits against the borough by employees or former employees.

Two months ago, on June 17, the borough settled litigation with previous administrator Robert Smith, who sued after he was fired in February 2023. Smith claimed whistleblower status, saying he was terminated in retaliation for actions he took to enforce state requirements for financial disclosure filings by the spouse of a sitting council member. Smith received $150,000 as part of the settlement agreement.

The third and now only remaining unsettled lawsuit was brought by previous Borough Clerk Kimberley Stevenson, who also claimed sexual harassment by Parada, among other allegations, when she filed against the borough and Parada in June 2024, two months before Brown. Stevenson said she was forced from her position by a hostile work environment.

The resolution settling Brown’s lawsuit was one of a list of resolutions in what is known as a consent agenda, in which municipalities list resolutions of a routine nature and pass all of them on one vote. In the resolution the borough states that it “does not admit any liability in connection with the litigation.”

Contact the reporter, Vince Conti, at vconti@cmcherald.com.