Sanchez

Plaintiff Elizabeth Sanchez was a high-ranking employee of the County of San Bernardino (the County), widely regarded as a “rising superstar.” Among her other accomplishments, she negotiated a labor contract with the Safety Employees Benefits Association (the Association), the labor union responsible for representing sheriff’s deputies. Thereafter, however, she and James Erwin, the president of the Association, began having “a physical romantic relationship.” She denies that this created any actual conflict of interest, because, she maintains, she was never involved in any further negotiations with either Erwin or the Association. Nevertheless, when her supervisor discovered the relationship, he insisted that she resign.

The County and Sanchez entered into a written severance agreement, which provided that neither side would disclose “the facts, events and issues which gave rise to this Agreement . . . .” Despite this confidentiality provision, newspaper articles appeared almost immediately that quoted county representatives—including Supervisor Dennis Hansberger—to the effect that Sanchez had resigned due to a “conflict of interest” arising out of an “ ‘improper’…