A panel of three arbitrators unanimously ruled April 18 for The New Reform Temple, denying Rabbi Jacques Cukierkorn’s breach of contract claims against the congregation. In addition the arbitrators ruled in favor of NRT’s counterclaims for breach of fiduciary duty and for fraud.
The ruling is binding and means NRT will retain funds the congregation placed in escrow it had slated for payment to Rabbi Cukierkorn to satisfy the terms of the separation agreement signed in March 2011. The rabbi was informed in December 2010 his contract with the congregation would not be renewed when it expired in June 2012. He joined the congregation in 2000. Additionally, the panel ruled that Rabbi Cukierkorn was to repay severance payments previously made and has ordered him to make restitution to the Discretionary Fund of the Temple.
Based upon the panel’s findings, NRT was awarded the sum of $267,215.44 to be paid by Rabbi Cukierkorn. NRT’s lead attorney, Jeffrey Hanslick of Husch Blackwell, said the rabbi has already paid the congregation.
In addition, the panel found that NRT did not disparage Rabbi Cukierkorn by the way it notified the membership about the suit or violate the agreement in any other way by its handling of the case. According to all parties involved, no parts of the ruling are appealable.
This is an Interim Arbitration Award. By agreement, the parties asked the panel to convert the Interim Arbitration Award to a Final Arbitration Award. At press time, that has not yet occurred, but the parties expect it will shortly.
The panel ruled in favor of Rabbi Cukierkorn on two claims. The panel found that NRT did not prove the elements of its negligent misrepresentation claim. It also found that NRT did not prove the elements of its conversion/misappropriation claim.
In a written statement, NRT’s President Michael Grossman said, “This has been a very regrettable situation for all affected by it. The board felt obligated to defend the Temple’s interests due to the improper conduct involved. The congregation and its leaders are pleased with the arbitration panel’s findings and eager to focus its attention on improving the experience at NRT for the membership. The Temple has received full restitution plus return of severance and is relieved to have this unfortunate episode over.
“While we have managed this situation as a board, we purposefully tried to keep it from being a focal point of our Temple’s proceedings, choosing instead to move the Temple forward. The board is happy to now have this matter behind us,” Grossman concluded.
Rabbi Cukierkorn also issued a written statement regarding the panel’s ruling.
