Settlement Reached With Ex-Town Employee

The Town of Rehoboth has agreed to pay $300,000 to a former town employee in the settlement of a lawsuit.

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. Fyfe will receive $191, 505.82 and her attorney Scott Lang will receive $108, 494.18 for legal fees and costs.