Polk County seeks to claw back some of $2.5M settlement
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Polk County supervisors narrowly approved hiring a law firm last week to try to recover part of last month's $2.5 million settlement with former HR director Jim Nahas.
Why it matters: Even though insurance covers part of the settlement, taxpayers still bear the burden of hundreds of thousands of dollars.
- Local leaders have a fiduciary duty to seek recovery for the external legal advice that led to the loss, county administrator Frank Marasco tells Axios.
Catch up quick: Nahas was fired in 2021 after county officials said he mishandled a sexual harassment complaint made against Supervisor Matt McCoy by deputy administrator Sarah Boese.
- McCoy has denied the allegations. Lawsuits filed by Boese against the county for harassment and retaliation after she wasn't promoted to top administrator last year are ongoing.
Friction point: Nahas' petition said his firing was political and that county officials threatened to publicly release an unflattering termination letter if he didn't resign.
- County officials ultimately issued a letter accusing him of being evasive or dishonest, which became one of the main points in his wrongful termination case.
State of play: A jury verdict last year awarded $4.26 million to Nahas, including $5,000 in punitive damages each from current Supervisors Tom Hockensmith and Angela Connolly for their roles in the case.
Yes, but: Last month's settlement ends any potential appeals the county could have pursued to reduce the award.
- The county's maximum liability in the case is $2 million, after which insurance coverage kicks in.
Behind the scenes: Supervisors voted 3-2 to hire Sease & Wadding on a contingency-fee basis to pursue potential recovery, with Hockensmith and Connolly opposed.
- Marasco tells Axios the recovery will focus on payment from the Ahlers & Cooney law firm, which advised the county in Nahas's termination.
What they're saying: Connolly told Axios after the meeting that she voted against the contract because she didn't know the fee arrangement was contingent on recovery and wanted to avoid additional legal expenses.
- Hockensmith tells Axios that he didn't know enough about the contract, saying he believes the county relies too much on outside counsel instead of the county's legal team.
The intrigue: The Ahlers law firm initially agreed to pay $250,000 toward the settlement, but the county thought that was not enough and declined it, allowing it to pursue a higher amount, Marasco said.
- Ahlers did not respond to Axios' requests for comment on Tuesday.
What we're watching: How much is recovered and, of that, how much is paid to the Sease law firm.
- The county's contract with Sease was not included in last week's public documents, and Axios' records request for the information is still pending.