Insurance cushions $4 million jury verdict but Polk taxpayers still liable
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An insurance policy could cover about half of a $4.26 million jury award this week in a wrongful termination case against Polk County.
Why it matters: It is potentially millions of dollars in unbudgeted costs and comes as the county faces financial hurdles due to new state laws limiting property tax growth.
Catch up quick: The 2021 lawsuit filed by former county HR director Jim Nahas accused the Board of Supervisors of extortion and libel.
- Nahas was terminated earlier that year after county officials said he mishandled a sexual harassment complaint against Supervisor Matt McCoy made by Deputy Administrator Sarah Boese.
Zoom in: McCoy has denied the allegations made against him.
- Boese separately has three ongoing lawsuits against the county that have accumulated more than $260,000 in legal fees: a sexual harassment case filed in 2022, one filed in March alleging a public records violation, and a third filed in May claiming retaliation after she was not chosen for the top administrator role.
State of play: The county's max liability in the case is $2 million, which is when insurance kicks in and includes legal costs, spokesperson Jon Cahill told Axios.
- The jury verdict includes punitive damages, holding Polk County Supervisors Angela Connolly and Tom Hockensmith personally responsible for $5,000 each in damages. Nahas received a $250,000 award to be paid by former Polk County Administrator John Norris.
Yes, but: An indemnity clause Norris received in a $520,000 settlement after being ousted by supervisors this year means the county is also responsible for covering his portion of the punitive damages.
What they're saying: The county is taking time to consider options in the case but will use the jury decision to improve practices and policies, County Administrator Frank Marasco said in a statement after the verdict Monday.
- Norris, Hockensmith and Connolly did not immediately respond to requests for comment from Axios on Wednesday.
The other side: Attorneys for Nahas argued during the trial that he had been used as a political pawn in a power struggle among supervisors.
- The former administrator issued a statement after the verdict saying the jury's work clears his name, the Des Moines Register reports.
What comes next: The outcome of the case is under review by supervisors, and it is unknown whether the county will appeal the award.
What we're watching: Whether the legal struggles influence elections next year as voters decide the three seats held by Democrats on the five-member board.
- Hockensmith nor Connolly is seeking reelection.
- McCoy has not announced whether he will run.