Clay Co. settlements for alleged harassment held up to be sure ‘this is a legal thing’
Clay County Auditor Victor Hurlbert is withholding settlement payments to five county employees who alleged they were discriminated against or harassed on the job, citing irregularities and departures from normal county procedures on handling employment claims.
Hurlbert said he can’t release settlement funds that, combined, will cost Clay County taxpayers more than $350,000 because the county attorney hasn’t signed the documents. Hurlbert said the agreements indicated the departing employees were supposed to receive payment on Nov. 16 and that he hasn’t heard back from the county attorney about why he hasn’t signed the agreements.
“For something like this I really need someone to say this is a legal thing,” Hurlbert said. “I’ve asked two times now for counsel to sign it with the counsel on the emails and no response.”
Some officeholders in Clay County say they have concerns about the settlements for employees who are seen as close to Clay County commissioners Gene Owen and Luann Ridgeway, who are set to leave office at the end of December because they did not seek another term.
Lowell Pearson, a Husch Blackwell attorney who serves as Clay County’s counselor, said he was not authorized to discuss the matter with the media.
On Monday, the Clay County Commission voted, with presiding commissioner Jerry Nolte abstaining, in a closed session to hire Jefferson City law firm Newman Comley Ruth to review and advise the county on the separation agreements.
Cathleen Martin, the attorney hired to oversee the matter, said on Tuesday she was not in a position to comment. An engagement letter signed by Martin said the firm will charge $365 an hour and required a $9,000 retainer from Clay County.
Hurlbert also said that employment-related claims and settlement payments are usually handled through the county’s insurance provider. He said he asked if the insurer was involved but hasn’t received a response. He noted that three of the settlements are for $50,000, an amount that matches the county’s deductible for wrongful employment practices offenses.
“That’s why these look very strange to me,” Hurlbert said. “I suppose the idea was to settle before going that (insurance) route. That’s why I asked the question: Why aren’t we following our normal procedure for this?”
Owen and Ridgeway, the two Clay County commissioners who signed the settlement agreements, did not respond to a request for comment.
They approved settlements with assistant Clay County administrators Nicole Brown, Laurie Portwood and Brad Garrett. They also approved settlements for county spokesperson Nikki Thorn and county tourism and project manager Melissa Mohler. KMBC reported last week that a sixth settlement with human resources manager D’on Walker was reached.
The settlement documents for Brown, Portwood and Garrett level various accusations against Nolte, ranging from harassment, retaliation, intimidation and publicly discrediting them. Nolte denies those allegations and did not sign the settlement documents because he said normal human resources policies were not followed.
“As I understand to be the case, I would be presented with a written report: This person has alleged this particular incident has taken place,” Nolte said. “I have not gotten that in writing from the HR department.”
He declined to discuss specific questions on the matter, but also pointed out the lack of a signature by the county counselor.
“I do not understand why county counsel has not signed that,” Nolte said. “If the county counselor has a concern about a defect in the agreements, it’s not been shared with me.”
The Star attempted to contact employees who signed settlement documents for comment and clarification on a number of questions. Kansas City lawyer Sarah Brown, a partner with Brown & Curry who is representing the employees, responded on their behalf and said she could not comment on the matter.
Hurlbert also said Clay County has a conflict of interest in the matter: Ridgeway and Owen are politically aligned and approved settlements about claims made against Nolte, a commissioner with whom they frequently clash on substantive county issues on the three-member commission.
“It is essentially settling with itself, those in control settling with those in control,” Hurlbert said.
He said that unless the claims against Nolte are independently evaluated, he can’t sign purchase orders to pay the outgoing employees.
“To act otherwise leaves the impression of a bonus, which is expressly prohibited by the Missouri Constitution,” Hurlbert said.
The employee separation agreements mark the latest controversy in a Clay County government that’s often been mired in political tumult.
Clay County residents continue to await the results of a performance audit by the Missouri auditor, which was requested through a petition drive that amassed more than 9,000 signatures.
The county has challenged in court certain aspects of the Missouri auditor’s authority to do the audit and what records the auditor can receive in the course of its work. Court judges have rejected the county’s arguments.
The state audit is not the only matter that’s put Clay County in the courtroom the last two years. Clay County Sheriff Paul Vescovo sued the Clay County Commission last year when Owen and Ridgeway voted to cut his budget, leaving the sheriff unable to pay vendors that provided food and medical care to inmates at the county jail.
Vescovo believed that the budget cuts were political payback arising from his office’s initial investigation into record tampering by Portwood, the assistant county administrator who is in charge of the county budget. Portwood was then investigated by the Missouri Highway Patrol. She entered into a deferred prosecution agreement to resolve the accusations.
A judge later ruled that the Clay County Commission had to pay the sheriff nearly $1 million to restore the budget cuts.
Owen and Ridgeway will be replaced by Missouri Rep. Jon Carpenter, a Democrat, and Megan Thompson, the Clay County Clerk who is a Republican. Nolte will remain as presiding commissioner, a position that’s up for election in 2022.
