
A lawsuit spanning more than a year between the village of Islamorada and a former development services director has reached an agreement.
During a March 18 meeting, council members approved a settlement in a lawsuit filed by Daniel Gulizio against the village via 4-1 vote; Vice Mayor Don Horton was the lone “no.”
A complaint filed by Gulizio’s attorney Robert Bernstein, of the Coral Gables-based Annesser Armenteros, in November 2023 stems from the village’s termination of Gulizio on May 30, 2023. The complaint characterized Gulizio’s termination as an “adverse personnel action.” Hired in 2021, Gulizio oversaw the planning and development services department.
Gulizio had a whistleblower claim and a breach-of-contract claim against the village. There was also a claim against former manager Ted Yates, although he was never served.
“The council members repeatedly and unjustifiably interfered with the administration of the department of planning and development services and the responsibilities of Gulizio,” the complaint states. “Council members and the village manager repeatedly pressured Gulizio to approve individual applications, despite the failure to meet relevant code requirements.”
Gulizio spoke publicly at a council meeting on May 18, 2023 about the threats of being fired and his concerns regarding the hostile workplace. Gulizio was handed a termination notice on May 30, 2023.
According to court documents, Gulizio informed the village shortly after his termination that he wished to receive severance in a lump sum. The village refused to pay the severance, however.
Insurance defense counsel Brian Koji defended the village against Gulizio’s claim. He told council members via Zoom the sides reached a principle agreement last fall. Per the settlement, the village will pay Gulizio $80,000 in damages. Gulizio will dismiss all pending claims against the village and Yates.
While Gulizio has signed the agreement, he has up to seven days to revoke it. In turn, Gulizio agrees to voluntarily dismiss pending claims against the village and Yates. He also agrees to not file any additional claims or lawsuits against the village and Yates.
“There were some discussions over the language in the agreement and ultimately Mr. Gulizio did not sign the agreement until after the election,” Koji said. “We met again in executive session and we essentially gave Mr. Gulizio a deadline to file earlier in March to get it on this public meeting agenda or we would move forward with litigation. He did sign the agreement.”

Councilman seeks procedure for complaints against council, staff
Councilman Steve Friedman requested the council direct the village attorney to present the village council with proposed personnel policies and procedures to address and resolve any future staff complaints against the village manager, council members or the attorney. As it currently stands, the employee handbook contains employee complaint procedures but nothing is outlined related to complaints by staff against the village manager, attorney or council.
Friedman’s request comes after the village council voted 4-1 during a Jan. 7 meeting to approve a severance-for-resignation agreement with former manager Rob Cole. Friedman, who voted no, said during the meeting that Cole never wanted to leave his post. Friedman said he received a phone call on Dec. 18 from attorney John Quick concerning a written complaint made by a village employee against Cole. Friedman was given a brief summary of the complaint.
Friedman said he had no knowledge of any conduct by Cole that would have “justified coercing him to resign in return for several weeks of severance.” Friedman said he wasn’t in favor of the proposal offering Cole severance when it was initially presented; rather, Friedman wanted to keep Cole.
Friedman added the policies and procedures should require an investigation when complaints are filed, and due process should also be afforded to all parties. Friedman’s request also included the requirement for a written report with findings from the investigation and recommendations for the village council before being asked to consider or take action on such complaints.
“The goal is to avoid the previous process that resulted in presenting such complaints directly to the village council for action before any investigation was performed or recommendation made to council members regarding such complaints,” Friedman said.
His motion didn’t get a second from fellow council members, some of whom said staff already was working on what Friedman was requesting. Jaime Terry, village human resources director, told council that staff is conducting a complete revision of policies and procedures within the employee handbook, including adding procedures when complaints are lodged against the village manager.
Terry said they’re hoping to have a proposal before the council in roughly two months. Village Attorney John Quick reaffirmed Terry’s comments.
“We’ve been working on it for a little while; we identified a number of things, this being one of them,” he said.
Friedman asked Quick if he ever received authorization from the council to update the policies and procedures.
‘It seems like a formality to do this,” Friedman said in relation to a resolution directing staff from council.
Quick said he has been working with the village manager on it.
“Staff does create things to present to the village council in terms of things we believe are required by law or best practice or updates. This is one of those types of things,” he said.
Acting Village Manager Sheila Denoncourt said a draft policy of procedures for the employee manual is in the hands of department heads for review and recommendations. It will then go to Quick for further review.
Despite failing to support Friedman’s motion, Mayor Sharon Mahoney, councilwoman Deb Gillis and Vice Mayor Don Horton said they supported his efforts.