Settlement Reached With Ex-Town Employee

The Town of Rehoboth has reached a settlement in a lawsuit brought by a former town employee.

Selectman Lenny Mills made the announcement at the June 30 meeting.

Plaintiff Diane Fyfe worked for the town’s Highway Department. Also named in the suit was Michael Costello, a former selectman who also served as Highway Superintendent from 2016 until 2021.

After joining the Highway Department in 2017, Fyfe claimed she had experienced “near constant gender-based bullying, gender bias, and sexual harassment from Costello.”

After Fyfe filed her complaint, Rehoboth hired an outside firm to investigate. Costello was terminated in March 2022 for violations of Rehoboth’s Conduct and Sexual Harrassment policies regarding his treatment of Fyfe.

Fyfe, a Rehoboth resident, had been seeking $1.16 million in damages for medical expenses and lost wages.

Terms of the settlement were not revealed.