Gib Arnold, former basketball coach at the University of Hawaii, just hit the jackpot.

叠测听that I mean that he is going to be awarded $700,000 in a settlement with the university, not聽because he did anything notably good, but because the employment contract under which he was聽working was notably bad.

Arnold, you may remember, was recently canned by the University in the wake of the聽NCAA writing up the basketball program for seven violations over a four-year period. Three of聽them were Level 1 violations, the most severe under NCAA rules.

The state auditor criticized the Research Corporation of the University of Hawaii for weak planning and failing to meet its broader mission.
Next time, according to the University of Hawaii, it will look more closely at the wording of high-stakes employment contracts such as the one it had with its former basketball coach. Civil Beat file photo

The NCAA report regarding聽the violations specifically accused Arnold of hindering or obstructing the NCAA聽investigation of the other violations.

The university, as a result, showed Arnold the exit.

But instead of tossing him for聽specific misconduct, the university terminated him “without cause” so the employer didn’t have聽to prove a specific reason. And in that case, Arnold鈥檚 contract allowed him to receive 鈥渁 lump聽sum amount equal to the total amount of compensation earned under the terms of this Agreement聽as to the date of termination.鈥

It is not uncommon for contracts to provide for “benefit of the bargain” damages in the聽event of termination. This means if the contract was for $1.4 million and he was paid $1 million聽to date, the termination would cost the balance of $400,000.

But this language looks like it might聽entitle him to everything he would have been paid under the contract whether or not he was聽already paid some of it. So he told the University to fork over $1.4 million.

The result is that he is getting $700,000, three and a half times the cost of the “Wonder Blunder” (a fundraising concert scam聽that drained at least $200,000 from UH-Manoa’s coffers).

Let鈥檚 take a look at a couple of things UH might have done differently.

First, would it really be impossible to uphold a termination for聽cause if the problem was聽even one serious NCAA violation that happened under his watch? Never mind that the NCAA聽report accused Mr. Arnold of specific conduct covering up the other infractions.

If we are聽paying a head coach all of this money, can’t we expect the coach to be accountable for the聽program? CEOs earning far less have been given the ax for far less.

Second, why was vague language like this allowed in a major employment聽contract? When the Star-Advertiser asked the university general counsel about it she said that聽going forward, at least two attorneys will review every Athletics Department contract; more聽emphasis will be placed on contract review; and some contract language will be standardized.

In both law firms and accounting firms, it’s common to have a “four eyes rule,” meaning聽that major documents like opinions don’t go out the door unless they are reviewed by at least two聽people.

Typically, both of the people need to be in responsible positions, so having the janitor聽look at it doesn鈥檛 count toward the four eyes required. And no, one person with glasses doesn’t聽count as four eyes either.

A four eyes rule for major contracts and similar documents, whatever the agency, is聽sound policy. We’re glad that the university’s legal team is finally adopting it.

Now, what about聽elsewhere in our state government? We want to make sure that Wonder Blunders are a thing of聽the past.

Community Voices aims to encourage broad discussion on many topics of community interest. It鈥檚 kind of a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or interesting people who are making a difference in our world. Column lengths should be no more than 800 words and we need a current photo of the author and a bio. We welcome video commentary and other multimedia formats. Send to news@civilbeat.org.聽The opinions and information expressed in Community Voices are solely those of the authors and not Civil Beat.

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